Differentiating your business by creating unique value:
The most powerful force in business today is commoditization. When this process occurs the only way to compete is on price. Unless what you offer is truly unique or ‘uncopiable’, developing knowledge-based relationships with your customers is perhaps the only way to escape commoditisation.
Making sure your customers achieve success with your products or services will guarantee they will want to use them again. The key is finding out what they need to learn to have this success and helping them to learn it.
The Knowledge-Value Flywheel concept helps to illustrate this.
Value is created in three phases:
1.Gaining actionable knowledge, and becoming more successful with your product or service, generates mutual value through increased customer satisfaction, building trust and loyalty.
2. Increased trust creates a willingness to share details of their life and business, enabling you to better service their needs and deepen the relationship.
3. As you become more relevant and valuable to your customers, they know you and your services better, and are more comfortable doing business with you. This enables you to customise individual offerings.
These three phases form a flywheel which keeps gaining momentum. At every turn of the wheel value is created that exists only within the relationship. Value that cannot be copied or commoditised.