Overview: Value add refers to "extra" feature (s) of an product or service that go beyond the standard expectations and provide something "more" while adding little or nothing to its cost. Adding value can give a competitive edge to businesses even when they supply more costly products, are smaller or more specialised than their competitors.
What Is It?: Value add is when a customer is given a feature or add-on that gives them a greater sense of value from a product and the business.
Information: Information value add is where a customer is given richer information than expected on product before, during and after they buy.
Process: This is value that is added when the customer performs a process. This can be loyalty points, new service, upgrades etc.
Personal: Personal value add is where a customer can choose what additional features or services they want at no extra cost.
Time: This form of value add is often used in offering extended guarantees, warranties or support to customers.
Service: Service value add is where a standard service is augmented with additional benefits on a short or long term basis.
Sales: Sales value add is where a customer is provided with additional products, information or benefits at the time of sale.
Delivery: Value add in delivery can include low cost / high value items like specific timing, out of hours, tracking, tracing, redelivery etc.
After sales: Following up with customers after a purchase and offering assistance if needed is a popular value added service.
Product Care: Having discounts pre-negotiated with product care specialists is a powerful way to add value at no cost to customers.
Upgrades: Providing upgrades or enhancements to products or services outside the contract terms increases customer repeat purchases.
Disposal: Helping customers to dispose of obsolete or broken products is increasingly used as a value added service.
Tools: Providing customers with tools and support related to their use of the product and service adds value and builds loyalty.
Social Media: Social media can add value for customers by building a community of interest that adds value through contact and experience sharing.
Emergencies: Offering rapid support, help and advice when something goes wrong with a product can be a low cost infrequently called on value add.
Sales Channels: Value added elements can be used to encourage customers to trade with you by using your preferred channel Eg Web.
Support Channels: Support channels can also be a segmented and have different levels of value addition to encourage customers to the lowest cost one.
Identifying Value Add: Think about your products and services. Ask customers, family and friends what they think would be useful and beneficial.
Other businesses: Examine the value added elements offered by competitors and other businesses to identify Value Add candidates.
Linked Value Add: Examine and see if there are services that you receive free from suppliers that could be passed on the customers as value add.
Co Competition: In some cases value added items are created with local competitors in order to retain local customer business in a local market.
Value add costs: Value added items will have a cost. These need to be calculated and factored into your overall pricing strategy.
Game Changers: Value added capabilities can sometimes be integrated to your normal product offer as a way to change the market you are in.
Its Value: Value added items and services can increase customer loyalty by 20% and lifetime purchases by 15%.