CRM drives perceived value

Where exactly is value created for a customer or consumer? Particularly in competitive commodity markets, there are at least two centres of value - the first is the simple, quantitative value which is linked to the price paid and the goods received. The second is linked to the perceived value, which is a more nebulous notion which is linked to how that customer feels about his service provider or supplier.

With the support of effective customer relationship management (CRM) systems, companies have the ability to influence the perception of value within their customers both effectively and affordably. The availability and use of information is a key tool which can drive this influence.

The manner in which a company creates value for its customers goes beyond the mere provision of goods. The price tag of a car, for example, is just one consideration. Around that, manufacturers of especially high-end vehicles construct several layers of value-adds. These include the manner in which any representative engages with you, the service plan and its less easily-defined value-adds, such as the complimentary coffee, newspaper and ride home when you bring the vehicle in for attention. These value-adds combine to form the perceived value of the product.

Even the purchase of consumer items - a PC, for example - has associated `soft` value which goes beyond the specifications of the machine and the price you pay for it. Where providers of commodity services such as telecommunications or financial services are concerned, perceived value may be attached to any one of a number of additional services, including how and when representatives interact with you.

Arguably, perceived value is where ambitious companies can differentiate themselves from their competition. With globalisation and the availability of more options, differentiation has become increasingly challenging. If the product itself cannot differentiate, then the focus must fall elsewhere; hence the rise of complimentary services which can and do include anything from generous service and warranty plans, to lifestyle magazines, owner`s clubs and so forth.

It gets even more difficult for companies in services sectors. With the quantitative value to the customer much the same, these companies must still attract and retain their customers. It is in the perceived value which is created in the mind of the customer by peripheral services and value-adds, that the real differentiation lies.

That CRM solutions can support the creation and support of perceived value is a fait accompli; there are plenty of commercially available software packages and tools which can be integrated into the business systems environment of practically any company in order to create and support a value-adding network of carefully thought out support mechanisms. However, if these systems are to deliver enhanced perceived value and to deliver a sound return on investment, they have to be backed by the appropriate corporate culture and will to impress the customer and give them the experience of perceived value which will keep them coming back for more and more.