Another way to improve your value is to decrease your price. You can do this a number of ways, such as lowering your sales price, offering a discount on multiple purchases or offering a free product after a customer buys a specific number of products.
You might be able to maintain or even increase your profits with a price decrease if you can find ways to lower your costs in conjunction with the price decrease. For example, in exchange for a reduced price, your customers might need to buy in bulk, reducing your packaging, shipping and other transaction costs.
Your product is more valuable to customers if they can use it with fewer problems or in more ways. Options include offering expanded customer support hours or free customer support; assigning a customer support representative to large customers; providing a detailed frequently asked questions, or FAQ, area on your website; or extending your warranty.
For example, provide a free training session for new customers, publish a customer newsletter or create a library of articles for customers at your website. Look for cross-promotions you can create with other businesses. A fitness center might offer its customers a monthly packet of coupons good for discounts from a local sporting goods store, health food restaurant, massage therapist and tennis coach.
Those businesses would all promote the fitness center, which would give their customers a discount or free trial membership. Ensure that you consider customer value according to both their current and potential spend with your organisation and assess the customer lifetime value impact of the change. Ensure you have a robust estimate of the customer lifetime value so that you can make decisions you can defend to your CFO.
How to calculate Return on Customer Investment. What is your Return on Customer Investment? How to calculate customer retention rate. Using next logical product to maximise cross-sell. Cross-Selling: the why and how for successful companies. Genroe uses this information to send you the CX Tribe e-Newsletter.
You may unsubscribe at any time. View our Privacy Policy. He is on a mission to stamp out ineffective processes and bad surveys. I am often asked, What is the best way to develop and implement strategies to increase customer value?
The only ways to increase business value. Customer Lifetime Value. Technology Partners. In-Depth Guides. Contact Us. Send this to a friend. Send Cancel. Providing customers with the products or services they seek, at competitive prices and with terrific customer service is obviously the best way to ensure that a customer remains with a company for the long term and continues to buy from it. However, there are always specific actions available to a company which will encourage customers to stick around longer and spend more.
The challenge is knowing which actions to apply to which customers and when to do so for maximum results. Optimove introduces customer value maximization modeling methods which are far more advanced and effective than anything else available, manual or automated.
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