Outsourcing and Call Center Blog

28 May, 2007

Value Creation

Filed under: BPO,Call Center,Marketing,Revenue,Strategy,Value — shamrin @ 16:12

Raimo van der Klein founder of Marikaya, a marketing and idea factory (my words) has some thoughts on value creation that really resonate with me. There were a couple of things in this entry in his blog that I thought were particularly apropos for Indian BPOs and coincide with a number of the things I’ve been talking about here.

If you look at the slideshow that goes with his blog entry, there is a slide titled “Adding Value Creates Margin“. This idea should be sloganised and put above every door in your building, pinned to every cubicle wall, emblazoned on every piece of stationary and perhaps tattooed on the back of the hand of every executive (and staff) in your organisation. We should, no we must be in a continuous struggle to find, create and invent value for our customers. I find that I can’t emphasise this enough because we, here in India, concentrate way too much on price which is merely the denominator in the value equation and is a very poor vehicle with which to manipulate value.

I want to keep this a short entry so let me just make a few unsupported bulletted claims:

  • Customers buy from you and stay with you based on (perceived) value
  • Value = Benefit / Price
  • There is some lower limit on Price, i.e., pricing below cost is an unsustainable business model for most of us
  • There is no such limit on the upside of Benefit
  • Increasing Value by increasing Benefit is a lot easier and more profitable that doing so by lowering price

1 Comment »

  1. Thanks for the post..;-)

    Comment by thinkmobile — 29 May, 2007 @ 2:08 | Reply

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