Creating and Capturing Customer Value
The concept of creating and capturing
customer values in the market is the main goal of businesses. In order to
achieve this, is important to understand that today’s marketing concept has
gone through a process of evolution. Today, successful business are not seen
marketing like “only selling and advertising” (Kotler & Armstrong, 2014);
most business, are implementing an effective approach that allow them create
connection with customers needs and improve profits once the customer is loyal
to the business products or services.
The best way to understand customer
values is by thinking about the exchange characteristics between company and
customer. If the company exchange is based only on getting money from customers, then,
its approach is not getting customer loyalty; but if the company exchange is
based on satisfying its customer’s necessity through out product and service,
then, their approach will bring value from customers, additionally, the money involve
in the transaction.
Buss 306 Power Point Slide
The illustration above, shows the
process required to create value for customers ( the first four steps), and the
last step in red, represents the company main objective of capturing value from
customers. The process seems to be easy, but build valuable relationships with customers is complicated. It is known that customers have different taste, likes, and dislikes, so this requires businesses to study customers’ behavior at detail. For example, analyzing purchasing behavior, the marketing mix (the four P’s) to see if the company have capacity to incoming demand, or if prices are affordable to customers, etc. Additionally, the company has to make sure customers are receiving the benefits they are offering. Certainly, the process requires a lot of efforts but the final outcome (customer loyalty), will bring the business long- term customers relationships.
To create and capture value from
customers, most businesses are implementing customer relationship management
(CRM). They keep customers’ information in databases to monitor their
purchasing styles, needs, and interact with them more effectively. For example,
a company sends a birthday cards to customers to personalize the attention,
customers in return increase its loyalty to the companies’ product or services.