When defining and refining the methods by which value is delivered to customers all building blocks of the service offering should be included. An effective business model definition focuses on all aspects of service delivery and strives to ensure their alignment with customer perceived value. Marketing messages should communicate the relationship between desired value and value provided, sales processes should ensure service offerings provide sought after benefits, customer service should reinforce value provided, all service components should support the delivery of customer perceived value and the value provided should be in line with remuneration submitted for services rendered. Following are the 5 major components of the value chain in automotive repair:
- Marketing – Inbound and outbound marketing efforts serve to communicate value offerings to customers and prospects. In the value chain this is generally the foremost avenue of ongoing communication. Ensuring that marketing messages establish the direct correlation between customer desired value and value delivered will make certain that advertising efforts are successful.
- Sales – Cognizance of customer perceived definition of value and acting to draw the correlation between it and service offerings will stimulate positive evaluations in the mind of the customer. The customer seeks benefits and has a specific idea of what constitutes value. Highlighting a direct relationship between value sought and value delivered will increase success in sales efforts.
- Customer Service – Communications with customers during the course of service delivery are opportunities to reinforce the benefits of value provided. This will enhance the perception by the customer that what they sought is being delivered.
- Service Components – The entire service experience of the customer consists of many pieces. In auto repair the most impactful are services performed and parts used. Services may be performed in house or via sublet and parts can be comprised of a number of brands from various suppliers. To achieve maximum effect in providing value as the customer sees it – all suppliers of components of service delivery must be in line with the customer’s view of what benefits should be.
- Delivery – The point at which the vehicle is delivered to the customer in exchange for payment is the direct act of value reciprocation. Value is gained (payment) for value provided. After the sale and delivery of service is complete the customer will evaluate the relationship between value received vs. value remunerated.