A business is defined by the value it brings to the customer as this reflects on the financial value of the venture. Without any value addition to a customer’s life, an ambitious project like an eCommerce business does not reach its profit or branding goals. Value creation is what makes a business relevant in the eyes of the customers and investors, giving it the identity of a brand.
Online Business Value Creation Strategies
Successful eCommerce businesses engage in the perpetual cycle of value creation to remain the leader in the market. In a highly competitive arena of the business, such as the e-commerce sector, value creation is the mantra of surviving and thriving among a horde of competitors.
The process of internet business value creation is similar as well as different from other traditional business values. This is because most of the operations and fronts of the internet business venture stay limited to the digital space. However, one of the primary ways in which a digital business can connect with the audience and create value is by linking them to an experience. The business does not create value with the products at hand but what the product delivers to the customer.
In the analysis of Internet business value creation, there are three major ways in which value is created or added-
- Tapping into something new
When a business ventures into something new by expanding the product line, it generally creates new value for the brand. The expansion of product lines helps the business connect with the consumers by offering them newer options to explore.
This also creates a new revenue channel for the company. However, the expansion of product lines must be done after extensive customer data research and insights. This helps in fulfilling demand in the market by launching in-demand products.
- Improving quantity
Sometimes, the customer wants more quantity than was offered before. When the business offers something more for the same price as before, there is a value addition to the existing products. However, the business must not compromise in quality just to offer increased quantity. Also, refer to Kibo eclipes to know the strategies of businesses.
- Improving quality
The improvement of quality is a sure-shot way of value creation and addition to an existing product. For many businesses, improving quality is a continuous process as they hear customer feedback and criticism before enhancing quality. This process can be done on both products and services. For example, an e-commerce venture might improve the quality of the product or raw materials. However, the business may also take up the initiative to improve delivery speed and experience for the customer.
Many businessmen think that a well-established business initiative does not need the chain of value creation. However, the opposite of this is true as a business needs to sustain its value over several years. Therefore, a periodical review of the value it offers to customers and the scope of value addition must be done. One of the major mistakes that businesses make is putting revenue above customer satisfaction. On the contrary, consistent customer satisfaction delivers value to the business in the most organic and sustained way.