Let’s face it, there are several logistics companies out there that offer the same service as yours. The question you need to ask yourself is, what makes yours stand out? Why would potential customers pick your logistics company over other options available at their disposal ? Today we learn about how Value Proposition Enhancement for Logistic Companies can have real impact.
If you can answer these questions correctly, you have identified your value proposition. On the other hand, if you have problems answering the above questions, then there’s every chance you will lose a lot of customers.
In this article, we talk about how you can enhance your value proposition as a logistics company. You can apply these insights to several aspects of your logistics business like trucking, warehousing, maritime, port logistics, and freight forwarding.
Every field that logistics companies operate in undergo remarkable changes over time. This is because this sector goes through various changes like digitalization, mergers and acquisitions, commoditization, price pressure, and increased competition.
Also, you have to understand that customer needs and values change as the industry evolves. These factors and more will force logistics companies to communicate and enhance their value proposition effectively.
Instinctively, most logistic companies are going the extra mile to offer their customers the best service to satisfy them. This way, they are poised to get commercial and financial results with hopes that it will improve their service efficiency and balance sheet at the end of the day.
Naturally, if they keep towing this path, logistic companies will evolve into an operation-intensive business. However, these moves are not enough to sustain profits; neither can it increase sales on a long term basis.
To improve your value proposition as a logistics company, here are some steps you can take:
Make use of Data
You can enhance your value proposition by making use of data available at your disposal. Thanks to advancements in technology, data collection and analysis are possible to get with ease.
There are several unexploited data that you can make inferences from. Data on internet usage, driving patterns, vehicle diagnostics, and location information can go a long way in determining how you structure your business to satisfy your customers.
Other types of data that can come in handy are weather and traffic gotten from data from sensors, advertising response data, monitors and forecast systems – financial business forecasts, social media data, website browsing pattern data.
Excellent knowledge, analysis, and using these data will help you tailor your business in a way that will greatly enhance your value proposition.
How to analyze data and enhance value proposition
- You need to have a detailed knowledge of your customer base. An understanding of these data will allow you to quantify how willing they will be to pay for your services.
- You have to define your customer into segments. This way, you divide your customers into several groups based on shared characteristics. However, you can efficiently and appropriately market and provide services to each group according to their preferences.
In conclusion, Find what is missing between what you offer currently and your projected offerings and try to make the necessary adjustments.
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“Boosting your Business Performance is our Passion” The Consultants bvba is an advisory and In-house expert company focusing on Pricing, Commercial excellence & Business Transformation.
Author Baydhir Badjoko, https://www.linkedin.com/in/theconsultants