Customer Value Misconceptions
In “Creating customer value ” I discussed the need to meet expectations. This continues to be the key portion to any customer relationship. The problem is that value is considered to be something on its own. Almost seen as something completely separate, and this is of course asinine at best.
Instead of fixing the product or service to match the promises we make the customer, we add other things to the sale hoping that this will be the value they are looking for. It isn’t and that simply doesn’t work. Unless you are adding something of direct value to the purchase itself, however, that is hardly ever the case.
Although I appreciated the travel coffee-mugs that came with my car; the “value” added to the purchase is negligible. I know that the $0.99 per cup this dealer paid for them is not going to hurt him in the least. Not mentioning that they have the dealership details on them. So now I am supposed to feel that I got value out of becoming their advertiser?
If they had simply put the box in the car, not mentioned it, and left it at that. I would probably had thought more of the gift than them acting like they gave me something really special. It starts to look more like a bad joke when they present a couple of plastic cups with the ceremony of it being the Nobel Prize.
The simple fact is that adding value is not that easy, or even possible. Value is still going to be measured, by the meeting and exceeding of the customers’ expectations. Few customers will equate the value in their purchase with the free gifts that come with it. If you are going to add something to a sale, it has to be of relevance and carry a direct connection to the use and enjoyment of the product or service.
This concept of “adding” value is a disconnect that prevails in sales today. If you own a business, you probably get these 900 page catalogs with everything from branded post-it’s to pens and bottle openers. By all means, use them. Just don’t think that they will be what bring your customers back. These items bring value to you in terms of advertising. Don’t confuse that with them making a difference in your customers’ experiences.
We can pack on coffee mugs, key rings, and other marketing giveaways, and sales / marketing gurus all over are claiming this to be of great value. I think it has a place, but that place is not to cover up our failure to live up to our promises.
Next time someone tries to sell you these items as “marketing” materials, ask them to show you example of conversions, new business brought, customer satisfaction surveys that improved dramatically or any other metric that would prove their often very lofty statements.
These items are only a small addition to what should be your real business.
Meeting and exceeding customer expectations.









April 28th, 2008 at 3:26 pm
Good Layout and design. I like your blog. I just added your RSS feed to my Google News Reader. .
Jason Rakowski
April 29th, 2008 at 1:08 pm
Too funny - They will show you metrics on the results of their pens and refrigerator magnets like well like err… umm… hmmm… like not. You know that they really cannot. They can say things like “most people love a free…” but after doing 100’s of trade shows and watching people collect SWAG and collecting it myself, most of that stuff is just junk. I laugh at the amount of the stuff I get at a trade show that ends up in the garbage. I really do not need a coozy from a manufacturer of garbage pails or a foam finger from a company that sells me web space.
Value added seems to be a game that the smart play and that too many companies have no clue about.
Example - just bough a few suits from Men’s Warehouse… and their value added is a lint brush… not much more value than the coffee mug the car dealer gave you - but makes much more sense…
—–You may want to delete this below – but just my thoughts on the older post —–
BTW: Your concept of the free batteries is a grand one- My background is filled with life in the electronics world. The concept is great – batteries are such a bad example and can lead to so many more issues than benefits…
Ben
April 30th, 2008 at 11:16 am
My favorite car sales value-add is when they send you a card at the start of spring and autumn to walk you through how to change the clock for daylight savings.
Very helpful and keeps an ongoing contact.
April 30th, 2008 at 12:02 pm
Benny -
At least the lint brush has a direct relation to the sale. The troglodyte marketers will give you a cheap “mens warehouse” pen instead.
When they give you something like a lint brush, they are in-fact giving you something that will enhance your enjoyment of the purchase. That is in itself a great idea. Even if its cheaper than another gift they give you it is the perfect add-on for their business.
Martin -
Again, this is an almost zero cost solution that improves your enjoyment of the purchase made, it helps you figure something out that they know a lot of people are struggling with.
This is proof of them thinking of how to actually stay in contact without Pi__ing you off in the process. Good for them.
Thanks for the comments to both of you