Maximize the Value to the Consumer at the Lowest Cost to You

In the summer of 1988, a single mother of three young boys wrangled up her rambunctious children and piled them into the car to head out for the night. It was 6:00 pm on July 4 and she was determined to get a premier spot to watch the fireworks. The spirited family lived in a small town in a modest home and was surrounded by a tightknit group of neighbors.

Their house was about 4 miles from where the fireworks were to be set off, so it should have been an easy drive and fun night. To everyone’s disappointment, it was not. It seemed everyone in the area decided to go to the park as well, causing massive traffic jams and frustrating delays.

The challenge for the woman was exacerbated by her three children, who clearly had too much sugar that day and were bouncing off the walls in the car.

To make matters worse, the day was hotter than usual, with temperatures peaking around 94 degrees. And though the family brought snacks to eat and water to drink, it wasn’t enough. By 7:00 pm, two hours before the first firecracker was set to be lit, the kids were pining for more treats. This didn’t bode well for the single mother who was on a tight budget and worked hard to keep food on the table and a roof over their heads. Nevertheless, she continually reached into her purse to pull out money to give to her boys so they could fetch more overpriced snacks from the vendor who was strategically placed in the middle of the park.

The fireworks were spectacular, but the evening turned out to be more trouble than it was worth. The terrible traffic, blistering heat, and expensive snacks turned what should have been a fun outing into an exhausting night.

The following day, the woman spoke to neighbors about her experience and was dumbfounded by what she heard. The neighbors stated they watched the same fireworks show, yet merely went out to the open field behind their house. They relaxed in the comfort of their own home, appreciated the wide-open spaces of the empty field, and enjoyed numerous refreshments they got from their kitchen. Frustrated and dejected, the woman thought about the amount of time and effort it took the previous evening, when she could have just as easily gone into the backyard to enjoy the Independence Day celebration.

This grim reality is too often what many companies experience. Rather than realizing what is important and doing what is necessary to meet the needs of the customer, businesses go above and beyond while creating no additional value. To succeed in this economy, you must only place emphasis on the specific actions that will deliver intrinsic and extrinsic value to your clients. More than just incorporating new technology, finding ways to be innovative, or developing a unique method of reaching your customers, the actions you take must be substantiated by the increased value you will deliver.

Stop wasting valuable time and resources on areas that your customers don’t care about. It is important to leverage advances in technology and place emphasis on using innovative processes in your system but you must make sure it does not overtake the significance of delivering the most value to your customer at the lowest price possible.

Similar to the woman who spent more time, effort, and money to celebrate Independence Day without increasing the value of her family’s experience, so too is it only important to place emphasis on activities that will be valued by your consumers. Anything that extends beyond this is a waste.

Bringing It All Together

The value companies deliver to customers has always been and will always be a moving target. Yet in the end, it is the only thing that matters. You must endlessly focus on being customer centric and discovering how your company’s core competency can provide the most value possible to your customer. However, you are no longer able to stop there.

The pace of change in the business world today makes this the new baseline. To build sustained success, it is critical that you relentlessly pursue increasing the value you generate by addressing other problem areas as you continue to adapt, evolve, and improve. Your competition will never stop trying to upend your success. To combat this, you must constantly work to find new ways to increase the value you deliver.

This requires you to remain focused on looking at what the true pain points are for your customers, while knowing it will change over time. Be vigilant on where you place prominence and how change is affecting your industry and market. And more than anything, constantly work to identify new ways to create additional V-A-L-U-E for your customers.

Notes

  • 1. The Numbers. “Box Office History for Jurassic Park Movies.” TheNumbers.com. www.the-numbers.com/movies/franchise/Jurassic-Park#tab=summary (accessed April 4,2020).
  • 2. Madden, Duncan. “The Annual Worldwide Shark Attack Summary Is Out.” Forbes, com. https://www.forbes.com/sites/duncanmadden/2018/04/06/the-annual-world wide-shark-attack-summary-is-out/#le717e981e9d (accessed April 5,2020).
  • 3. Hardy Diagnostics. “Who Is the Biggest Killer on the Planet?” HardyDiagnostics. com. www.hardydiagnostics.com/wp-content/uploads/2016/05/The-Most-Dead ly-Animals.pdf (accessed April 5,2020).
  • 4. ALS Association. “Every Drop Adds Up.” ALSA.org. http://www.alsa.org/fight-als/ ice-bucket-challenge.html (accessed April 4,2020).

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