A Customer sees value in a product or service from ‘their’ perspective not from the supplier’s point of view. The perceived ‘value’ by a customer can be tangible, non-tangible, psychological or even be seen from a social perspective. Thus ‘perception of value’ is the benefit derived from the product, service and associated experience from a customer’s perspective. Delivering perceived value is key to success, it can make the difference between a referring customer and a detracting customer. To be successful we need to tap into the basis of that perception and provide the appropriate level of support that delivers an enhanced perception.
When I am working with a group discussing the topic of customer service, I use a personal approach to explore the question. I ask them to think about going shopping in a department store, then I ask them what they are seeking when they go shopping.
Most of the males in the group indicate that when they go shopping, all they seek is good service, the ability to get into the store easily, purchase the item they came for, and leave. They seek the ability to explain what they want, expect the service provider to supply what they want and of course a value proposition as well. As many have stated they just want to get in, get it and get out.
The majority of females indicated that they go shopping for the experience. They usually have something they want to obtain, but they use the opportunity to enjoy the experience of shopping within the department store. A number indicated that they value the experience of the shopping, new items, being looked after, socialising with a variety of people, new ideas, and as one has described it, “it is not finding the item, it is all about the hunt”.
Although this a broad generalisation, the perception of value described by the two groups above show basic differences in expectations that will lead to different perceptions of the same experience. To really understand perception, this needs to be broken down further by segmenting the age groups, the object of interest, etc.
A successful organisation identifies and measures what their customers value and uses this information to improve their internal processes, products and services and delivers increasing value for all customers and in some situations other stakeholders. In doing so, an organisation may reduce some services and eliminate processes or products as they may find they are over-servicing for no benefit. Delivering to maximse perception is key.
Some of the approaches that could be considered are as follows:
- Having a clear approach to collecting feedback on perception of value, focusing on key expectations and determining the importance and nature of the supplier’s relationship with the customers.
- Using measurement that is linked to important customer requirements throughout their lifecycle with your organisation. Comparing the results with other organisations and then adjust the design of processes that deliver the experiences.
- Analysing feedback and communicating it to all relevant people in the organisation. Time is set aside to review the results and initiate improvement actions or projects.
Knowledge of customer perception of value should influence the leaders, the strategy, the products and services and the key functions in an organisation. This has many benefits for the organisation, including sustaining competitive advantage, assisting in partnerships, improving customer acquisition, promoting advocacy and assisting in achieving sustainable performance.
For further information about customer perception of value, feel free to contact David by emailing DavidS@thriveplus.com.au.