Sustainable value creation is the universal model for business growth. Be it egg production, car hiring, retail sales or digital marketing, the principle behind their success and growth in the marketplace remain the same. Value is an inherent nature of humans and we all gravitate towards it. Whilst value can help a business attract new customers and break new ground, only a sustainable value creation system can keep or increase a business customer base. When the iPhone 8 device was released last year and the sale slumped I thought that was the indication that the reign of the Apple smartphone devices was coming to a stop. However, Apple was able to redeem themselves and retain their customers base with the release of iPhone X. A good backup plan if I must say. This brings me back to my point that to sustain or increase business sales your value system must meet or exceed the customer's expectation. The simple key to increasing business sales and customer base is the value you are creating. So how can a business keep value creation a never-ending experience? Here are four ways.
Prioritizing value creation
A good value system must be desirable and inspire people because only things that are universally desirable becomes the new standard of value. When the smartphone devices started it was a level plain field for the likes of Windows, iOS, Android, and Blackberry. With time the innovation and the value addition wrapped in the Android operating system soon supersedes the other application and today Android owns over 86% of the smartphone customer base. It is important for a business to know where the true value lies and prioritize it to increase their customer base. When the cryptocurrency came to life in January 2009, it was only noticed by a handful of computer programmers. Yet the idea caught on. Today, many cryptocurrencies have come into existence and only businesses who can prioritize the value embodied in digital currency market will be rewarded. An example is Apollo DAE, a High-tech Digital Asset Exchange that is not only leveraging the growing cryptocurrency industry but prioritizing its value system. The business has created a platform that allows cryptocurrency users to engage in Bitcoin, Ethereum, trading, BTC, ETC, Smart contract, Crypto, cryptocurrencies, crypto exchange, coin base, crypto trading, ICO, token sale. I thought that was a smart move, knowing that cryptocurrencies users will gravitate towards an operation that offers an exchange for their digital currency and that is a well-placed value proposition.
Value creation through customers feedback
At the end of the day, it is all about customer satisfaction. Customer’s loyalty is frail, the moment they notice you are unable to meet their need, they will find another provider. Gone are the day when Coca-cola was the best drink you could find on the shelf. Today Coca-Cola must compete with other drinks and up their game to stay in business. Sustainable value creation can only be achieved by listening to your customers need. In 2007 Betsy and Brian had just six cage-free chickens and their eggs carefully collected and used to prepare a meal for their guest. What was just a friendly gesture has become an income-generating business with over 250 network of farms producing eggs for their business. According to Betsy and Brian, the positive feedback received from some of the guests who was served the eggs inspired them to start handsome brook farm where they provide pastured raised eggs to a bigger network of customers.
Value creation through innovation
Listening to your customers will only help you keep them but that will not grow your business. Innovative value creation can grow a business from the ground up. You will have to anticipate your customers need and help them realize that this is a need. The new partnership between IKEA and TaskRabbit is a good example of a business anticipating and helping its customers to identify a need. As a regular customer of IKEA, assembling purchased items can be tiring and for some people tasking. And like many IKEA customer, I was excited when the company partnered with TaskRabbit to help struggling customers assemble their items after purchase. This is an optional service and I love it. Ones the item is delivered, TaskRabbit will help sort out the assembling at your chosen location. Take time to think ahead for your customers, create product and services that help them meet their needs and they will credit you as a top-notch value creator. It also shows that you care about them.
Matchmaking value creation
It is sometimes very difficult to meet the expectation of the shareholders and customers simultaneously. Both parties are important to the success of the company and sometimes might have a different interpretation of value system. The shareholder has interest in the business future progress and wellbeing while the customers are only interested in the satisfaction they get from using the company’s product and services. The best way to approach this is to involve all the stakeholders in decision that affects the customers. It is important to note that without sales a company can only survive for a while before closure. So, it is essential that shareholders can compromise a little to ensure customer satisfaction comes first. At the end of the day, it’s all about finding a way to strike a balance between societal and economic value.