Value vs Price

We all talk about our service, people and adding value. But what do we mean and more importantly what do our clients expect service and value to mean.

Every forwarder will flag their service and people as factors that set them apart from the competition, yet only 50% of customers say they would buy more from their current vendor and just 39% would recommend them.

How can this disparity between our aspirations and the customers experience exist when we know perfectly well their three primary drivers are price, reliability and service.

Forwarding has long been a product-focused business, developing freight solutions and delivering them at the lowest cost possible, with little – if anything – to differentiate.

Which is why so many freight transactions rely entirely on price and while that keen rate may open the door, it really needs to be replaced by another factor at the earliest opportunity.

Value incorporates price, reliability and service, but its most critical feature is in effectively meeting needs and to have a chance of doing that you need to understand your customers situation and their buy klonopin legally needs.

Which means an in-depth dialogue and investigation that uncovers these factors and the ability to act on them.

By understanding the true supply chain needs of your customers, you can develop solutions that directly meet their needs and in doing so begin to reduce price sensitivity.

Delivering the three customer-service attributes shippers most want from forwarders; solution proactivity, speed in resolving issues and a single point of contact, delivers great value and will create a competitive advantage with that client.Value vs Price

Hand-in-hand with this customer orientation is the developing skill in your team to uncover a shipper’s situation and effectively audit their supply chain to identify weaknesses and propose new solutions, which generates additional revenue for the business and builds stronger relationships.

The client’s perception is of a supplier that cares Building customer centricity for their business, understands their strategic concerns and wants to develop a partnership.
Meeting these basic needs will drive the value of the relationship from the first sale and extend over the customer lifetime.

Support retention by improving customer engagement with this key group, employing effective communications* that highlight all your solutions, demonstrating that you respond to all your clients changing needs.

*This means reaching the group of customers who’s needs you have not had the opportunity to uncover. Customer centricity applies to everyone!

AVOID THE COMMON WEAKNESSES

  • Price focus
  • One size fits all services
  • Limited ownership of the customer
  • Technology capability not communicated
  • Low-touch customer services with limited proactive contact
  • Limited attempts to manage customer lifetime value beyond selected key accounts

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