How to Pack More Value Into your Product or Service

In a market economy, there are any number of buyers and sellers of similar products. In order to beat out competition, most businesses will offer steep discounts. But this isn’t sustainable for many businesses.

Fortunately, there are more commercially viable ways to attract customers without saddling the books with debt. Conventional mass advertising has reached a saturation point and diminishing returns, with the majority of netizens installing ad-blockers.

The need of the times is to make business plans customer-centric. Focus on customer happiness and loyalty rather than just satisfaction. Create a narrative that speaks to the consumer. Make the products or services a central aspect of their aspirations and lifestyle.

This method transcends the transaction. The emphasis is on addressing the psychological, emotional and practical needs that accompany the purchase. This makes the experience more memorable and the company gains a reputation for being insightful and dependable.

Their service is so thoughtful the customer wants to go back and recommend it to friends, family and acquaintances. Good experiences are likely to be shared extensively.

The first step is to understand the intersection or niche where your rival has an edge. Once identified, zero in on your special value-add propositions that could give you the lead.

Below we explore some of the ways value-add marketing can be done for customers and small businesses. We ideate on how alternative approaches can keep you profitable and give your competitors a run for their money!

The Freebie Phenomenon

Using add-ons is a great way to extend or expand business operations. This can vary depending on B2C and B2B formats. It gives the customer a pleasant surprise and creates a positive association with your business.

Let’s look at a couple of examples of B2C value-adds:

• Amazon incentivizes the Prime membership. This paid status doesn’t just offer entertainment content, it also entitles the customer to free or speedier deliveries of groceries and other products.

This saves time and money for customers and Amazon can also optimize its logistics.  With one strike, Amazon promotes both its online retail segment and its streaming services by merging functionality and incentive.

• Nike expanded their area of operations into lifestyle by offering free or paid workouts under the Nike Running Club and Training Club apps. So it stimulates the sentiment behind buying the shoes, which is to get fit.

This motivational element sets Nike apart. Nike also uses data from the app to better understand consumer sentiment, identify KPIs and to create a more representative product catalogue.

• Companies can create an online forum that welcomes feedback, stories, and suggestions. Product design becomes more relevant with this direct insight. Also, including customers in your brand story makes them more invested.

They get a sense of belonging by becoming ‘co-creators’ of the brand.

• You can also give out free samples of new products in the market. The customers get a real-life feel of the product rather than an abstract promise. A new surprise experience can expand the company’s demographic while also delighting customers.

*All these marketing strategies can be incorporated at much lower costs than conventional methods. So you can protect your bottom line, while also creating crowd-pullers.

Resources and Assistance

When it comes to B2B value-add marketing, emphasis is on customized quality and resonance of vision between the vendor and client.  So the products and services have to be tailored to the needs of each client.

Although this sector values bespoke services, competition is aplenty. To stand out, you need to add to the service bouquet by offering complimentary services that enhance client experience and even aid their business.

Some examples are as follows:

• Companies can send training instructors or arrange webinars and podcasts, to assist the clients to better understand the product or service. Training will help save the client’s time and money and get the product running immediately.

This is applicable for software, tech and accounting solutions. It can also apply to products like cosmetics, where tutorials can help the client catch up with new trends and popular applications. This helps their craft in addition to supplying raw materials.

• You can also offer perks like deputing your own sales team to groom, coach and motivate the client employees. This could improve client business, which benefits you as well.
• Clients can be invited for industry conferences and seminars that you host which expands the client’s network for free. They get exposure to industry best practices, financing and industry players just by partnering with you.
• If you are marketing a SaaS tool for marketing folks, you can provide added resources like grammar-checking tools with your app

This strategy of growth by helping others grow creates an extended return on investment (ROI), for both parties in both monetary and non-monetary terms.

Bang for your Buck!

Giving customers extra services for a set price point for no further investment can set you apart. Tapping into the sentiment of money-well spent, can create a steady base.

Examples include:

• Streaming services and telecom providers can merge their plans to create a synergetic relation. If people cannot afford or do not want the entire streaming service, they can select their limited content within a prepaid plan on their mobile bills.

You can create an ecosystem of per user or per subscription commissions for the on-boarding partner. For example, some prepaid plans may give you access to some content on Hotstar, HBO Max, Disney or others.

This way, you can create a niche by moving past just talk time and data. Users get more quality content for a few extra dollars. This expands the customer footprint on both the platforms.

• You can also boost uptake on higher priced subscription plans, whether they be telecom, streaming or broadband (or a combo). For example, you can offer fringe benefits for a premium plan on a music app.

This could include free downloads without Wi-Fi or internet and ad-free services. For people who need music all the time on the go, this option is certainly worth paying for because the benefits far outweigh the costs.

Pass on the Good

When your business does well, passing on the prosperity to customers shows them your gratitude for their business. Rewards will motivate people to play whatever part they can in promoting the company.

Some ways this can be done include:

• Payment apps offer loyalty points, coins or vouchers that add up to a free purchase. These bonuses are given for referring the app to other potential users. If people were already intending to spread the word, these gifts will help them along.
• For products and services bought in bulk, you can provide a lower per unit cost. This can be for long-time associations or new clients that you are trying to partner with.

The ARPU (Average Revenue per User/Unit) may be reduced, but by selling larger quantities your profits will sky-rocket. B2B it isn’t so much about the margins as about the total appraisal.

Any marketing is about demonstrating value for the product or service you are selling. As industries get commoditized by smaller D2C brands, building value to your offering becomes increasingly important. And the strategies mentioned here in this article can go a long way in establishing this.