Customers Will Pay for Value

I was just asked to participate in a survey by J.D. Power and Associates. This is what they wrote in the survey introduction, "J.D. Power and Associates, the recognized "Voice of the Customer" and a global leader in market research, wants the consumer electronics industry to hear your voice! Your opinions and feedback make a significant difference in helping manufacturers improve and enhance the experience of customers like you." Had they just read my last post?

I was unfortunately disqualified from the survey with the first question since I had not purchased a camera in the past 12 months. It appears that the 5 cameras I had purchased in the previous 3 years was not a consideration. (To put your mind at ease, 3 of the cameras I purchased were gifts for family members.) I expect they were targeting a very specific audience for the survey and information on cameras purchased more than 12 months ago were not within their target. That is only a theory, since I didn't get past the first question.

Did you also notice the caption on the picture, I found from Benjamin Moore? In case the print is too small on your computer, it says; "THE WAY WE SEE IT OUR CUSTOMERS ARE THE WINNERS." Benjamin Moore is clearly one of the parties recognizing J.D. Power and Associates as the Voice of the Customer.

J.D. Power and Associates describe in their website (JDPower.com) that they conduct "proprietary (commissioned) tracking studies." That means that their customers pay for the services they receive. I doubt that I have surprised you with that information. It does illustrate the point of this post - Customers will pay for value. A simple way to measure value is if and how much the customer is willing to pay. I will make a disclaimer here, that sometimes value is only perceived by the customer when they put down the cash to pay. Even I have had an expensive item break shortly after getting home. The value then shifts to how easily I can get a refund or replacement.

A quick check on your ability to add value is what are customers willing to pay. For items in the store, customers pay with money. For educators, their customers may be paying with their time and attention. Customer loyalty, a.k.a. return business, is another way customers will pay the service provider. Think about what value you are trying to add and ask yourself' "What are my customers willing to pay?" Ask yourself this question frequently and at times when you want to add value. I find this question not only applies to my business; it is particularly convicting when I am trying to add value to my family.

Improving What?

If kaizen is continuous improvement, what are you going to improve? I believe improvement has two sides that describe the same objective. There has been much written about eliminating waste (seven, eight or more forms depending who you read - more about this in the future); I prefer to see the other side - adding value. I believe this is the "glass is half full" view and also makes you seriously consider what is value. Just like answering a multiple choice question, you can pick the best answer or eliminate all the wrong answers. If you can define value properly, you are way ahead of the competition and picking the best answer.

Value should be defined by the person(s) you are trying to serve. Four easy measures of value are Safety, Quality, Delivery and Cost. To be honest, when I bought my first car; a 1970 Ford Maverick, cost was the only factor I considered. Today's consumers are much more savvy and will look elsewhere if you fail on any one of these four basic measures. Voice of the Customer is one format to work on properly defining value. Marketing research has been on to this concept for years. It goes wrong when those listening apply their own bias and don't really hear what the customer is saying. It is easy to get off track because we can believe we know what is best for our customers.

Companies and individuals who define value well have an edge over those who do not. Staying focused on adding value and watching for value shifts; usually in the form of raising the bar, is the next level of accomplishment.

Choose the right customer to help you define value and your life will be changed.

First Post - Kaizen

Welcome!
This is the first post as I seek to share my observations and lessons on kaizen. Loosely translated, kaizen means continuous improvement. It is a management philosophy that organizations seek to adopt in an effort to keep there organization relevant. I see kaizen as a way of life. Life provides the change, I seek to provide the "for the better." My topics will sometimes be business focused and sometimes personal. Thank you for taking the time to read this post and I hope that I can provide value for you through my future writings.