Before we start getting deeper into various strategic tools for value creation, let’s understand the context of Value creation.
In simple terms, we define: Value Creation = Creating UCE- Unique Customer Experience!!
If you are able to create a unique buying experience for customers, you don’t need to win over competition. If you are able to strategies to fulfill the current expectations, preferences and build an ability to be ahead in terms of gauging future aspirations to innovate your products and services, you need not worry about competition, if you are able to……
In the context of products and services the Value can be considered as Value= Essence x Impact x Endurance
Essence: What purpose does the product or service fulfill?
Impact: What impact did the product or service created?
Endurance: How long the impact or experience lasted?
The customer experience consists of three phases,
1) Pre-buy perception and aspects gathered through social interactions.
2) Actual in-buying experience &
3) Post buy i.e. consumption experience throughout the product life cycle.
All of these put together results into impact endurance. Are your products and services living a contentful experience or living a bad taste will decide what customer the experience was.
As such, creating a unique customer experience is easier said than done. In order to have the ability to create it, organizations need to concurrently excel across 4 areas,
Becoming People Centric– Value for people, who are the forefront of making the future a reality. It’s not just the employees but the entire system of human touch points-that of your suppliers, alliances, partners, service providers and such.