How To Drive Value Creation Within Your Company

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Value creation is fundamental to the success of a business. Not only should it be one of the main goals of a company, value creation is a necessity for sustained, profitable business. Every business seeks to create value, trade value and capture some of that value as profit, however only successful companies truly understand the importance of value and creating it throughout the entire business. Here’s how you can drive value creation within your company, 

The Need For Speed 

Value and speed go hand in hand. The faster you can deliver value, the more value you can deliver. Not only that, but today’s consumer expectations demand speed. We live in a time of instant messaging, same day delivery and live streams. 

The speed of delivery is valuable in itself. Successful companies know that people are impatient and if they can’t deliver services or products as fast as possible, they will find a competitor who can. The faster you can address consumer pain points, the more valuable you will be perceived. 

Quality Is Key 

The higher the quality, the higher the value. While this sounds obvious, the part that consumers deem “quality” is not always immediately clear. While durability and great design are factors of quality, they might not be what the consumer is looking for. A quality product is one that satisfies the consumer’s needs

Your customers decide what they feel is valuable and so quality is whatever they say it is. Discovering what your customers want and delivering it faster than your competitors is a great way to drive value creation. 

Hold Value Within 

An effective way to drive value creation is to keep as much value within the business as you can. This doesn’t mean to limit spending as much as possible, to do so could cause damage. Rather, it’s important to be mindful of your investments, both within the business and your personal life, especially if you are a start-up. 

Many businesses begin to struggle with value creation as they invest in areas that might seem like they will help, but instead take away much needed capital from essential areas of the business. Weigh up each investment with its costs and how much value it will eventually create. 

Similarly, if you’re an entrepreneur with a new business, the investments you make outside the business can impact on its value creation whether you like it or not. Most entrepreneurs will know that at times they will need to inject some of their own money into the business. Again, understand the cost of investments outside your business. For example, know the cost of a house deposit when purchasing new property, understand the impact of your purchases and how they can effect your business and its value creation. 

Improve Customer Service 

People are becoming less and less loyal when it comes to brand loyalty, which means that your brand needs to go the extra mile to earn customer loyalty. Customers are blasted with advertisements all day long and have unsurprisingly become desensitised to many marketing efforts. 

Instead, customers appreciate authenticity, honesty and convenience. In the day of live chat and instant messaging, customers don’t want to wait to fix an issue. The easier you make it for your customers to get in contact with you and fix their issues, the happier they will be with the experience and in turn, the more loyal. Loyal customers are a great way to increase the value within your company. 

Make It Easy 

Again, customers demand convenience. If your website, or order process is too complex, customers will simply move to the competition. The easier you make it for customers to find, buy and use your product or service, the more value you will capture. 

Similarly, you should make it as easy as possible for your team to make sales. Sometimes businesses can get tied up in complicated processes and lack of synergy between departments. Simplifying processes and communication methods will make it easy to make sales, and in turn drive value creation. 

Create Value At Your Company

The importance of driving value creation for your company can not be overstated. Without constant value creation, a company is sure to fail. In such a competitive market, companies must actively seek out ways to drive value creation and increase profits. In 2019, it’s about more than just selling products and services and capturing the profits. Businesses must be consumer orientated, financially savvy and adaptable.

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