According to Tom’s research a 2000 US Department of Commerce study found that the stock market performance of companies that practiced business excellence beat the S & P 500 average return on investment by five to one.
Defining value involves determining two things: what someone gives up and what someone gets in return.
This ratio of output to outcome is a true measure of value. Customers assign value as they answer this question: ‘Is the product or service a fair exchange for what I give up in time, money, and energy to acquire it? In Value-Added Selling terms, price is what buyers pay, and value is what they receive.
Value-added salespeople live by a simple motto: Add value, not cost, and sell value, not price. By helping customers become more successful, value-added peak competitors in turn experience success.
The value-added way of life is a simple philosophy that permeates every aspect of your being: do more of that which adds value – whether it’s time management, career development, personal and professional relationships, or emotional and physical well-being.
Value-added peak competitors are organizations and people that embrace and live this value-added philosophy. They expect the best from themselves, which enables them to maximise the value they bring to their customers.
Tom discusses the difference between Quantitative value-added and Qualitative value-added.
Quantitative value-added is the visible, tangible, observable, measurable, objective, quantifiable, substantive, and performance based. It stands on its own merit and you can attach a £ value to it. It’s what you do for the customer. This quantitative, performance value makes it easier to sell your solution.
Qualitative value-added is the intangible and not easily measured. It’s how the customer feels about your product, company and service. It’s more about who you are than what you do.
While quantitative value added spells out performance based value, qualitative value implies a benefit.
One way he suggests to establish your true value is to do a full value audit on your product, and both your company and individual service. By examining both the quantitative and qualitative aspects of all three, you’ll enhance both you feeling of self-value, and increase the menu of what you have to offer. This will help you in the presentation and positioning process.
Value-added organizations constantly seek ways to innovate and create additional value for their customers. They live by asking ‘What if?’
They continually ask themselves ‘What kind of total experience do our customers have with our service and company?
Tom focuses on how to increase customer retention and loyalty by increasing customer satisfaction. He says that value-added organisations are great because they deliver a valuable total experience to their customers. They concentrate on bridging the gap between potential and reality – their potential and the customer’s reality.
I think this is a great book to learn how to better position yourself in your marketplace and really understand what you need to do to offer the best service and build on both customer loyalty and repeat business.