Value Based Promotion
Posted by Tim Tivis
on December 4th, 2007
We here the word “value” used a lot in today’s business world. But what does it really mean? How can we prove value to our customers? It starts with you and your attitude when you interact with your customers.
First let’s talk about you. What do you like most about working in your company? One answer that is stated more than others is “I like helping people”. This is a great answer particularly if you work on the frontline. Stop and think about this. What person has more contact on a regular basis with your customers than the frontline?
So if you like helping people and you have significant interaction with them, what can you do to make their business experience the best it can be? One way to show customers their value is through a concept called value-based promotion. Value based promotion is identifying a need, then recommending a product or service to help a customer gain a solution This promotion concept is based entirely upon your unconditional belief that you are making their business experience better than before. It is not about pushing products, it is about promoting value.
Consider this. Not long ago my family and I went to a restaurant where we had gone for years. At the completion of our meal when it was time to pay, my wife wrote a check just as she had done for years. A few moments later, our waiter returned and informed us they no longer accepted checks. I thought to myself, how strange, no one sent me a memo informing me of this, after all, am I not one of their best customers, and no one took it upon themselves to tell me this. Nonetheless, regardless of my abilities of persuasion, I was forced to pay for our dinner with a credit card (if you have teen-agers, you know why I did not have cash!)
I conveyed this to my banker on my next visit to the bank. Upon hearing of my dilemma, she informed me that I should consider adding a debit card to my checking account. She described how the debit card worked but more important than the features of the debit card, the greatest thing she said was if I have a debit card, what I experienced at the restaurant would probably never happen to me again. To me as a customer, I believe she was informing me about the debit card not because she was trying to sell debit cards, rather she was telling me how the debit card would make my life better if I owned one. That is value!
The key to acquiring opportunities for value based promotion is to be proactive in discovering customer needs. Just as my banker identified a need to discuss a debit card, you too should be on the look out for these types of opportunities. They can present themselves at anytime, everyday!
Value based promotion begins and ends in your attitude and your actions about offering products and services to your customers. Ask yourself what your intentions are when discussing products and services. If you feel you are pushing products, you may at some point feel you are pressuring your customers and therefore stop the process entirely. If however you feel that by promoting a product or service, you are making your customers business experience better than before (value), you should seek every opportunity to do so…don’t you agree?
Train Up!