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Price is What You Pay, Value Is What You Get: Improving the Customer Journey
Legend has it that Nikola Tesla visited Henry Ford’s factory when Ford was having some sort of trouble. He asked for Tesla’s help to identify the problem. Tesla proceeded to walk over and chalked a small X on one of the boilerplates.
Ford was grateful and told him to send an invoice. When the invoice arrived, Ford was shocked at the $10,000 bill and asked how such a small task could cost that much.
Tesla responded with a detailed breakdown showing “Marking an X” listed at $1 and “Knowing where to put the mark” at $9,999. Needless to say, Ford paid the bill.
True or not, this story is a perfect example of good value for money. Let’s look at how you can use the customer journey to shift people from thinking about the price to thinking about value.
Someone Is Always Willing to Sacrifice Profit
Competing on price is destined to be a losing battle. Someone is always going to be willing to sacrifice their profit margin to make a sale. The only way to win that game is to be the ultimate loser.
Someone has to end up making next to nothing or even losing money before the battle is over. It’s a race to the bottom.
Closing a sale because you offered the lowest price also sets a bad precedent. That customer is going to expect the same result on every deal and will happily jump ship to your competitors at the first sign of a lower price.
What Is Value Selling?
Selling value instead of the price is a much more effective way to do business. Done well, value-based selling takes the price out of the picture.
If you can offer your customers more value than your competition, that’s not something they can easily overcome. They can’t necessarily add value to their offer the same way they could drop the price.
Value selling examples could be a result of better customer service, a higher degree of expertise in your industry, faster turnaround on repairs, or various other things that improve the customer experience (CX). The more work that goes into delivering the value, the harder it will be for your competition to counter your offer.
And once you can show your customers that you’ll deliver on the value you promise, they’ll be more likely to be loyal to you, even if your competitors come in with a lowball price.
How to Optimize the Customer Journey
Knowing what your customers need, getting your offer in front of them at the right time, and tracking their results through the entire sales process is critical to customer retention.
A customer relationship management or CRM system helps you track every important piece of information about your customers. You’ll be able to pull up that data whenever you’re dealing with them to make them feel like they’re your only client.
Where to Turn For Help
Anodius provides end-to-end CX and CRM solutions for businesses of all sizes. We’ll help you optimize the customer journey through the entire sales process with the latest CX and CRM tools.
Our team of consultants has experience with companies in a wide range of industries. Let us put that experience to work in helping you grow your business. We believe in leading by example so you’ll get to experience value selling techniques first-hand.
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Get in touch with us today to learn what we can do for you.
Roman Kučák, Partner