Customer-Value Lies At the Heart of All eCommerce Biz

Customer-Value Lies At the Heart of All eCommerce Biz

In the 4 C’s model, the primary focus is on the customer. Thus the companies which follow this

model believe in making products which satisfy their customers. The customer makes the

purchase decision and is therefore the most valuable resource in any marketing strategy.

In the absence of a customer value propositions, businesses lack the true conviction of their

product’s worth. Today, we will discuss how to create customer value for each of your target

users. With this customer value propositions in place, product marketers and managers will find

it much easier to direct product roadmaps, write compelling messaging, build supportive sales

tools, and engage the whole company.

Key Target User

Your marketing strategy is specific to the key target user.

So, what exactly is a key target user?

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First, a key target user is an intended user of the product. These are the people for whom the

product was designed. These are the individuals who will be experiencing the value proposition.

Second, the key target user is a predominant user for the product. There may be other secondary

and tertiary users for the product. Those other users may be significant enough to warrant their

own customer value proposition.

Third, the key target user does not refer to an individual. It refers to a segment of individuals that

share the same characteristics.

Some products may have more than one key target user. In those cases, a customer value

proposition should be developed for each key target user. Key target user must be determined

through interviews with real observation of a sampling of individuals that meet the key target

user identification.

Next Best Alternative

The factor of the customer value proposition that makes it different from a list of benefits is its

comparative nature. The value experiences detailed in the customer value proposition compare

the expected use of your product with the next best alternative strategy for the key target user.

What is the next best alternative?

The next best alternative is the option that will best improve the situation for the key target user.

Selecting the next best alternative:

1. Research all of the alternatives available to the key target user.

2. Check to make sure that often overlooked alternatives are included on the list. Common

alternatives include: changing internal processes, throwing more personnel at the problem, or

fixing the problem themselves.

3. Profile the alternatives to understand how each would solve the key target user’s problem.

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4. Select the alternative that seems to best improve the situation for the key target user.

Profiling the next best alternative:

1. Focus on the sequence of events involved in the use of the next best alternative.

2. Detail any other characteristics, considerations, and requirements.

3. Capture the alternative price and costs.

The best thing of next best alternative is that the entire organization gets a realistic view of their

product will fare in the market. It covers both the good and bad outcomes. This uncompromising

evaluation of the product makes the organization to understand in their best possible way.

Value Quantification

What is in value experience quantification?

Selection of a meaningful unit of measurement: The unit of measurement should be significant for the key target user.

Attempt to measure the end results of an actual value experience for a sample sizing of users. Get this for your product as well as the next best alternative.

Estimate the difference between your product’s and the next best alternative’s when you can’t measure the actual value experience.

Continue to collect measurements as you sign on new customers. Use these measurements to evaluate and adjust the original claims in your value proposition.

eCommerce strategies for Customer Value Proposition

“When you study the reason for Amazon’s success across the globe, it is based on customer

service. They do everything for the customer. I think Indian players are finally realizing that they

cannot keep talking about GMVs over and over, they need to talk about the other things,” Ashish

Jhalani, founder of ecommerce research firm etailingIndia (#DigitalErra), told Tech in Asia.

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From being a GMV metric focused business, eCommerce companies have turned their attention

to focus more on customer loyalty.

“Everyone at Flipkart now has net promoter score (NPS), and customer satisfaction as their most

important metrics. Ecommerce is a business where you’re selling products every day. So you

need the execution rigor to make sure that every day, we are providing the best customer

experience,” said Binny Bansal of Flipkart.

Similarly, Snapdeal has joined the bandwagon with more emphasis on customer care, retention,

and improved delivery times.

When thinking about your target customer, keep these tips in mind:

Your company’s job is to delight your customers. Make sure to address the needs and wants of your consumers. Unify the goal of customer satisfaction in line with generation of

income. Be proactive in delivering solutions to your customers with

personalization of services. Improve the turnaround time by increasing the efficiency of delivery of

your services of products. Always show appreciation to loyal customers. One way to do this is to

feature them in your social media platforms. It is very important to listen to customer feedbacks and apply them in

your business.

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Apply the standard rule on creating customer value, which is “benefits-cost= customer value”.

Conclusion:

The customer value proposition acts as the stimulant for effective product marketing where it

brings together customer intelligence, competitive insight and product valuation.

References:  (engr.colostate, marketingmix4c’s)

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