How to Create an Effective Customer Value Creation Model?
Focusing on Operational Excellence:
- This is when you are able to provide reliable products at a competitive price and can minimise your cost through operational efficiency.
- Operational excellence is not built in a day, it takes a lot of industry experience to fine tune the most efficient mode of operation for a company.
- When a company is able to focus on operational excellence, the company is then able to provide the best total cost and then can be an industry leader with regards to price and ease of doing business.
- A new entrepreneur must be able to research and build networks with the people in the industry to implement good case practices in the company.
Product leadership:
- An entrepreneur must be able to work with a team to provide the best product, one that is well researched and developed. A company that works to create the best value will relentlessly pursue new solutions and encourage idea generation in every level of the organisation.
- Building out product leadership is a rather long process - practicing a growth mindset, working on self-management and practicing receiving and giving feedback is a good way to prepare yourself for the journey of building a leading product that adds value to your customers.
Customer Responsiveness:
- The key part of any business is how its customers are treated. It is said that the best businesses are ‘customer-obsessed’.
- Companies that listen to their customers can provide tailored services and products to suit their customers.
- Customer satisfaction is non-negotiable and so this plays a huge part in value creation.
- Learning customer needs and wants is actually one of the easier steps in the value creation process. One of the easiest ways to do this is by going out and understanding where customers feel a gap that can be met by the skillset you or your business partners possess.
- Once you have underlined who your products are for, it might be good practice to go and speak to them every now and then to understand your market and come up with a product that solves their problem, which is what value creation is all about.