Always gather a fair idea of what the Product or Service means for the Customer

Mastering Value-Based Pricing A few Techniques for Selling
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This video discusses why it is important to understand what the customer wants. Value can be created only if we have a clear idea of customer needs. And only when a value is created, can we charge for that.

Transcript

Selling technique for always gather a fair idea of why the customer wants the product or the service. Now this is very important. I say to you one example from my experience in 19, early 1990s we were doing a project in Woodlands nursing home. Now there was no computerization in Woodlands nursing home till that point of time, everything was happening on paper. Now this nursing home exists in India is a British time that is pretty independent. Now we were we started studying all the registers and gathering what we should put into the system etc.

Now, then, one day, a director came to review the project, the directory immediately throughout all our work and said this is nonsense. He said that he wants three things from the hospital. He wants that. Anytime a customer walks in a patient walks into the hospital, he should be in his bed within 10 minutes. Then he said that any time a customer when he is ready to check out of the hospital There is a patient is ready to be discharged, the discharge process should happen within 30 minutes of the board giving the signal. And third is he wanted that the hospital should be occupied at least 90% of the 90% occupancy at all points of time.

Now, this totally changed the perspective of what we were building because we were focusing on how to capture data, where to store the data etc. Now, we had objectives from the cxos that what exactly they were trying to achieve from this project. We faced a similar situation in Bhutan Telecom. Bhutan telecom asked us to make a convergent billing system. We had our mobile billing system and they had a fixed length billing system and broadband billing system from another vendor. So now we started looking at the technicalities as to what it needs to make the mobile conversion billing system where mobile fixed line and broadband, all systems will be monitored by the same system.

We were working on the technicalities. When we had a meeting with a CXO, actually the the MD came down to our office. And he totally changed our perspective. He was he said that I bought this system basically because I wanted lean mean organizations, I now I have a situation where I have a lot of staff and the productivity is extremely low and the customers are unhappy. Now this totally changed the dimensions of what we were trying to do in the project. So it is very important that whenever we are doing any project or whenever we're thinking of providing a service, we should always get the top management perspective as to why they want that project or service to be rendered, or the project to be initiated or the service to be rendered or designed.

Unless we get this perspective, it is going to be impossible to address the actual customer needs. Why the project has been conceived by the customer in the very first place.

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