adding customer value
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Feb 20, 2024
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Uploaded by LieutenantTitaniumHerring49
Adding customer value
Melanie Smith
People planet and profit
February 15, 2024
Adding customer value
To create value for customers organizations must first determine what those needs are. Consumer
needs are often complex, interconnected, and vast and can be sorted into two broad categories, Product needs and service needs. Product needs are often conceived to solve a perceived problem
and refer to more specific things like what impact the product has on consumers' lives, affordability, visibility and more. Service needs refer to those things concerning the service offering necessary for the service to fulfill its purpose. Customer needs include such things as performance, compatibility, and reliability. Some ways that organizations can identify and meet consumer needs include conducting customer surveys, breeding an organizational culture that is centered around consumer satisfaction, frequent tracking of current customer satisfaction and knowing the competition that exists.
For this assignment I have been tasked with recommending two customer value initiatives that can be evaluated by impact teams of the NationaliTeas company for feasibility. My recommendations are as follows
.
INITIATIVE #1 Product Guarantees
“A product guarantee is a promise or assurance from the manufacturer or seller that the product will work as described or meet specific quality standards. If it does not, the manufacturer or seller
will fix or replace it. Guarantees are of no cost to the buyer and can be offered for both products and services.” (Kenton 2023)
By offering product guarantees to its customers the NatioaliTeas company adds value to the consumer
by demonstrating to the consumer that they take customer service seriously and want to provide an exceptional customer experience. It also conveys the NationaliTeas company’s
confidence in its product offering and shows that they are willing to take the risk of whether or not the consumer feels the same.
The added value
product guarantees bring to NationaliTeas as a
business
include word of mouth
advertising from those consumers who like the product offerings which lead to enhanced brand recognition, increased sales and improved customer loyalty and retention. Implementing product guarantees requires truly little resources other than time and attention to details. I believe it would be beneficial to create a written document specifying what products will be included in the guarantee, which if any would not and invest in some type of training to all stakeholders to have the most knowledgeable and helpful staff possible ready to assist the customers.
Some ways that the NationaliTeas company can monitor the product guarantee initiative
include Tracking and recording all relevant information such as product serial numbers, purchase and return dates and customer feedback. It is also imperative to constantly monitor and analyze the collected data with the goal of identifying patterns, problems, opportunities, and risks as it pertains to the guarantee.
INITIATIVE #2: LOYALTY PROGRAM
Loyalty programs are tools used by a business to show appreciation to loyal customers and show potential and or new customers what could be gained in purchasing from the company. There are four types of loyalty programs the NationaliTeas company can consider for implementation. The first consideration is a points-based loyalty program which consists of the consumer earning points based on purchases which can later be redeemed for discounts on products or services or rewards predetermined by the company. The second consideration is a value-based program
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which is like the point-based program but is based on the value the consumer brings to the brand which could include things like reviews, referrals, or another form of engagement. The third consideration is tiered loyalty program, comprised of membership levels that offer increasing rewards and benefits the more money the consumer spends. The final consideration is a subscription-based program where the consumer pays an upfront or recurring fee in exchange for exclusive benefits such as free shipping and first access to new products.
In creating a loyalty program, the NationaliTeas company a
dds value for its customers
by providing savings and rewards, exclusive access to products, a personalized experience, and a sense of belonging.
The added value
a loyalty program brings to the
NationaliTeas company include increased purchase frequency which motivates consumers to return more frequently to gain the reward, Free advertising by turning consumers into brand advocates, improved retention and churn and increased customer lifetime value by increasing the average order value and purchasing frequency of its customers.
The resources
that the NationaliTeas company may need to implement a loyalty program could include material needs such as branding assets like logos and graphics, equipment such as a point
of sale (pos) system and an E-commerce platform and someone to train employees and oversee the program.
Some ways that the NationaliTeas company can monitor
this initiative include choosing metrics that align with business goals, customer needs, and program objectives, the collection and analysis of relevant data and constant work on the value proposition, benefits, and rewards.
REFERANCES
5 types of customer needs: How to identify and meet them
. The Bottom Line by Square. (2023, November 23). https://squareup.com/au/en/the-bottom-line/reaching-customers/types-of-
customer-needs#:~:text=These%20are%20often%20complex%2C%20interconnected,Product
%20needs%2C%20and%20service%20needs
.
Kenton, W. (2023, October 30). Warranty definition, how it works, types, and example
. Investopedia. https://www.investopedia.com/terms/w/warranty.asp#:~:text=A%20guarantee%2C%20on%20the
%20other,for%20both%20products%20and%20services
.
Charlie. (2023, November 16). 9 benefits of loyalty programs - and how to get started with yours (with examples)
. LoyaltyLion. https://loyaltylion.com/blog/five-benefits-of-a-loyalty-program
Matkovic, I. (2024). Minimum amount of Time & resources needed to launch a loyalty program
. Resources. https://resources.spendgo.com/blog/resources-and-time-to-launch-loyalty
Dziadkowiec, P. (2024). Loyalty Program Management: 8 proven practices for managing your loyalty program
. Loyalty program management: 8 proven practices for managing your loyalty program. https://www.openloyalty.io/insider/loyalty-program-management
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