How Much is Your "Added Value" Actually Worth?
Asking a product manager if his or her product offers "added value" to the consumer is much like asking any individual if they think they are a "good person". In both cases, only a person with serious emotional challenges would provide a negative answer to either question.
The concept of "added value" is the idea that if a product offers additional benefits to the customer, which go beyond the stated purpose of that product (or service), it is offering added value. Added value is an unexpected "gift" to the consumer, helping to strengthen the brand, and enhance customer loyalty.
Well, if every marketer feels that their product provides "added value", then we must be living in a virtual golden age of marketing. But, it doesn't feel that way. So, what's the disconnect?
I think the disconnect is found in the answer to the question itself. How many marketers do you know that might answer the added value question in the following way:
Well, the list of possible answers go on and on. I believe these types of answers are easily challenged, and that they do not provide, and are not perceived by customers, as providing the same amount of value that the marketer does.
Quality is not Added Value
Even the last remark concerning "quality" - isn't that "added value"? No, in my opinion, because typically the price reflects the quality of the product (I know, not always). The customer is not getting anything as a bonus for buying your product, they paid for that quality, and to me, the unexpected benefit that a product provides is the very heart and soul of the idea of Added Value. What about great customer service? Perhaps, but only if all your competitors are providing poor customer service. And wouldn't your competitors list "great customer service" as their added value? If everyone in your market provides great customer service, what's the unexpected bonus?
What is the Worth, in Dollars and Cents, of Your Added Value?
Most marketers want to list a set of intangibles as their product or service's added value. But, if we insist that the only items that could make the value list were things that you could actually quantify, put a price on, are the only items that are classified as "added value" then the list would grow much shorter.
As an example, I deal with printing issues a great deal. Our printing representative brought us a proposal that suggested changing our work flow to her company, resulting in substantial savings over the course of the year. The rep made the effort to look at our history over time, understand our business, and make a sound recommendation that worked well and saved us money. That's added value. Her job is to provide printing services, not make process improvements at my company. In this example, thinking about the customer's business is an intangible of uncertain worth, making suggestions that save money is value in dollars.
Certainly there are intangibles that are added value, but if the only items that are on your Added Value list are intangibles, you are always vulnerable to a competitor who provides extra value that can be measured in dollars and cents - especially in today's economy. So tell me, what's on your list, and what is it actually worth?
Asking a product manager if his or her product offers "added value" to the consumer is much like asking any individual if they think they are a "good person". In both cases, only a person with serious emotional challenges would provide a negative answer to either question.
The concept of "added value" is the idea that if a product offers additional benefits to the customer, which go beyond the stated purpose of that product (or service), it is offering added value. Added value is an unexpected "gift" to the consumer, helping to strengthen the brand, and enhance customer loyalty.
Well, if every marketer feels that their product provides "added value", then we must be living in a virtual golden age of marketing. But, it doesn't feel that way. So, what's the disconnect?
I think the disconnect is found in the answer to the question itself. How many marketers do you know that might answer the added value question in the following way:
Our added value?
"It's our people. Good, smart people who care about the customer."
"A rich history of tradition and service. That's what makes our products special."
"Friendly people. Our front line folks are constantly complimented on their customer-orientation."
"Quality products. Our products consistently rank number one in quality compared to competitors."
Well, the list of possible answers go on and on. I believe these types of answers are easily challenged, and that they do not provide, and are not perceived by customers, as providing the same amount of value that the marketer does.
Quality is not Added Value
Even the last remark concerning "quality" - isn't that "added value"? No, in my opinion, because typically the price reflects the quality of the product (I know, not always). The customer is not getting anything as a bonus for buying your product, they paid for that quality, and to me, the unexpected benefit that a product provides is the very heart and soul of the idea of Added Value. What about great customer service? Perhaps, but only if all your competitors are providing poor customer service. And wouldn't your competitors list "great customer service" as their added value? If everyone in your market provides great customer service, what's the unexpected bonus?
What is the Worth, in Dollars and Cents, of Your Added Value?
Most marketers want to list a set of intangibles as their product or service's added value. But, if we insist that the only items that could make the value list were things that you could actually quantify, put a price on, are the only items that are classified as "added value" then the list would grow much shorter.
As an example, I deal with printing issues a great deal. Our printing representative brought us a proposal that suggested changing our work flow to her company, resulting in substantial savings over the course of the year. The rep made the effort to look at our history over time, understand our business, and make a sound recommendation that worked well and saved us money. That's added value. Her job is to provide printing services, not make process improvements at my company. In this example, thinking about the customer's business is an intangible of uncertain worth, making suggestions that save money is value in dollars.
Certainly there are intangibles that are added value, but if the only items that are on your Added Value list are intangibles, you are always vulnerable to a competitor who provides extra value that can be measured in dollars and cents - especially in today's economy. So tell me, what's on your list, and what is it actually worth?
