What is "customer value" that realizes differentiation?

What is "customer value" that realizes differentiation?

How do customers buy their products and services? The idea of ​​“customer value” is a hint. And what is the framework that enables differentiation from other companies?


1. Concept of customer value proposition

A unique customer value proposal is the starting point for differentiation from other companies
"Customers buy products and services to solve their problems"
Customers buy goods and services not because they want the goods or services themselves, but because they want some kind of benefit or solution. For example, you buy an electric drill because you want to make a hole, and you go to the gym because you want a youthful body.

There are so many products and services out there, but they don't solve all the problems customers have. Also, customers themselves are not necessarily aware of the problems they are having. Therefore, if we can meet the problems that the world has not yet met, or the problems that exist, but are not yet noticed, it will be a great difference.

However, discovering unique customer value is not easy. Therefore, in this column, we will introduce some frameworks for discovering customer value.

Framework (1) << Basic expression of customer value >>

Customer value is given by the following formula.
Customer value = Benefits / Cost
Benefits include both rationale and sensibility benefits.

"Functional (performance / spec) value" is an advantage in terms of reason, and "emotional value (value felt by using a product)" and "self-realization value (value that expresses one's personality)" Is an aesthetic benefit.

Taking soap as an example, "more dirt" and "good foaming" are functional values, "color and fragrance" "feel" and "feeling" are emotional values, "natural ingredients" "natural orientation" "luxury feeling" Is the self-realization value.

In the case of the service industry, in addition to the benefits, "process quality (quality of the provision process)" may be added.
In the case of intangible services such as products, it is difficult to perform proper quality evaluation before purchasing. In some cases, a reasonable quality evaluation will not be possible even after purchase. Therefore, users tend to evaluate the quality of service in the process of providing the service.

Even if the service content itself is not much different from the others, if the staff responds seriously to the customer's circumstances, the value and satisfaction for the customer will be high.

On the other hand, costs include financial costs (customer payments), time costs (time required to go to buy a product or reach a location where services are available), and physical costs ( There are physical fatigue to get a product or service, install it, and make it available, and mental cost (such as effort to learn usability).
 
Increasing the numerator benefits or lowering the denominator cost will increase customer value. Think about whether you can contribute either of the two benefits or the four costs.

Framework (2) << Think about the scene to use >>

Even with the same products and services, there are various ways in which customers will find value depending on the situation.

1. Cross-border goods

Examples of items that cause changes in the consumer environment : Internet, automobiles / motorcycles, travel / tourism, amusement facilities

2. Guardian goods

Examples of items that save consumers' crises and bring healing and compassion : Food / beverage , Banking / insurance, home security, home appliances, furniture / interior, beauty / health equipment, accessories

3. Strengthening goods

Examples of items that enhance consumers' vitality and ability: PCs, stationery, books, sports equipment, fashion, food Beverages, education

4. Reward goods
Items that are acquired and donated by the victory of consumers
Ex.) Houses, luxury cars, jewellery, precious metals, education, alcohol, luxury goods


For example, beauty treatment salons can change you depending on the person. It can be "things" "things that grow and enhance vitality and ability" "things that are won and donated by victory".

Let's think about "what value does your product / service have for the customer? (What kind of value do you want to provide?)".

Framework (3) << Remove customer inconvenience >>

In the framework (1), we have taken up the cost to the customer (some sort of hassle when using it). In order to remove the cost (inconvenience) for the customer, it is necessary to pay attention to the following three "inconveniences".


Eliminate inconvenience in use Change "difficulty" to "easy" such as "easy to use", "easy to use", "easy to ask" and "easy to understand".
Example: Amazon's online ordering / same day delivery

● Remove “unnecessary” from overdoing Example
of providing value that is necessary for customers
Example) QB house, simple mobile phone, standing bar

● “Uncertainty” that can be called disappointing remove
to eliminate the "regret after the purchase" feel before a customer purchases
example) return freedom, value guarantees (achievements billing), pay-as-you-go system, trial use

Framework (4) << Consider consumer activities >>

In order to remove the inconvenience of customers mentioned in Framework (3), it is necessary to pay attention to the process of purchasing and using the customer.

<Purchase stage>
1. Problem recognition (revealing needs)
2. Information search
3. Product selection
4. Order
5. Delivery
6. Payment (finance)
7. Product receipt

<Emergency solution stage>
8. Product installation / assembly
9 . use master
10. errands resolution

<continuation stage>
11. return merchandise
12. maintenance
13. Product disposal
14. Product replacement upgrade

seller (company) side, but will believe Eteshite the point of sale is the goal, purchased for the customer The point is just a start for subsequent use. Consumers are having problems with any of this process. Expand your eyes on the overall consumer activity and think about what your company can do.

Framework (5) << Add sharpness >>

One of the most common ways to think about the benefits for customers is to add functionality to everything. I feel that the idea that "customers want various functions is better to add various functions" and "more functions to make a difference" is still strong.

However, many of the features are unnecessary for the user. Also, the more features you add, the more it will bounce back to cost (price for customers). There are many customers who say that "the functionality is minimal and the price is cheap". "Removing unnecessary functions and providing at a price that customers can afford" is also a fine differentiation (this is called "negative differentiation").

Even if a certain function is enhanced, it is necessary to sharpen other functions that are not valuable to our customers. The points of sharpness are as follows.

● Which factors should be “removed” that are commonplace in the industry?
● Which factors should be “reduced” below industry standards?
● Which factors should be “increased” over industry standards?
● Which elements should not be added to the industry so far?


For SMEs, differentiating functionally (reasonable in terms of benefits) would be quite difficult. However, other benefits and costs can contribute to customer value. We would be grateful if you could share the framework introduced in this column with your organization and use it as a material for developing ideas for customer value.

<Reference>
“Job Theory” by Clayton M. Christensen et al. Harper Collins Japan
“Making a Selling Mechanism This Way” K. Kuriki, Nobutoshi Shimizu, Takuro Youda Nihon Keizai Shimbun
"Grand design of business model"
Masanao Kawakami "Chuo Keizai " "Blue Ocean Strategy" W. Chan Kim (Author), Rene Moborgne Random House Kodansha
"Story Marketing by Cases" Satoru Yamakawa Japan Management Association Management Center
20 Best Online Business Recommendations for 2020

20 Best Online Business Recommendations for 2020

Image source: Pixabay.com

What kind of impression do you have when you hear that it is an online business? Some people may feel uncomfortable, like "I don't know," or "I'm afraid of being fooled."

However, there are many people who start a clean business as a side business and generate more than their main business income. The advantage of an internet business is that anyone who has a personal computer and the internet environment can start immediately and the initial investment amount can be small. It is not unusual for people to start a business as a successful side business and start a business.

Therefore, this time, we will introduce a popular internet business for those who are thinking of "starting an internet business from now on".


Best Online Business in 2020 | Consultant Company

Consultation is the task of offering solutions to problems facing companies in business and giving them advice to make a profit. Consultants are people who teach companies about one-on-one business, such as tutors.

Practical management knowledge is needed for company consulting. This is valuable work because I can use my experience to give advice to other companies.

The point to be careful is to force companies into customers. It must be understood in advance that the consulting work is to give advice, and that it is the company's side to practice.

It is possible that consultants who attract customers on the Internet may not be able to enter work after poor reviews are written. You need to be careful not only about your direct income, but also the amount of work you receive so that you can deal with any company.

Recommended for people like this! : Someone who has practical knowledge and likes to please people.


Best Online Business in 2020 | Membership-based business

Managing membership-based content is the task of providing information to registered members. Make money by becoming a paying member and providing information that many people are interested in, such as "how to make money" and "how to start a business".

For example, let's consider the case of distributing email newsletters that contain information. Some companies offer a system for sending email to many people, so you can pay a monthly fee and use the system to send email magazines.

In addition, some look for free membership content is also seen, in free membership to provide content to think that it is possible to get better information come to pay members, provide useful information for members who pay me. Thus, the number of paying members will increase and profits will increase.

This business can be easily started by anyone, and we can create a system that generates several hundred to several million yen per month. However, it will be difficult to increase profits because the number of members will not increase without providing the information needed.

Recommended for people like this! : People who are sensitive to information that people want to know


Best Online Business in 2020 | Building a Website

To operate the site, you need to create your own homepage and other sites. Creating a site may seem difficult, but there are many companies that provide systems that make it easy. You can use these services to create your own site to attract customers, sell products for profit, or advertise other companies' products and get advertising costs.

It is up to each person in what genre to profit by operating the site. It is important to understand the essence of information that is said to be of interest in the world and to find genres that can make the best use of one's abilities. This will take time before you can attract customers, so you need patience.

The advantage of running this site is that the initial costs are low and anyone can get started. However, because many people operate the site, it requires an initial investment of time and money and ingenuity to attract customers.

Recommended for people like this! : People with reading and patience


Best Online Business in 2020 | Forex trading

FX A, proof of foreign exchange and Exchange is an abbreviation of (Foreign exchange trading margin). This is designed to make a profit by buying and selling foreign currencies.

For example, you exchange 10,000 yen for dollars when 100 dollars is for 1 dollar. That leaves you with $ 100. When the exchange rate depreciates and the dollar is 120 yen, 100 dollars is exchanged for yen. Then, 12,000 yen will still be there. By utilizing exchange rates and conducting foreign currency transactions, the initial 10,000 yen is 12,000 yen, which means that a profit of 2,000 yen is made.

To start FX, you need to open an FX trading account at a securities company. Leverage can also be used for FX trading, and it is possible to trade up to 25 times the amount of funds (domestic accounts) with leverage. Therefore, it can be said that the advantage is that a small amount of money can greatly increase.

However, if the market moves in the opposite direction to the expected exchange rate fluctuations, it is likely that a large amount of negativity will occur due to leverage. To prevent this, it is important not to trade easily, but to ensure that you have good knowledge about the transaction.

Recommended for people like this! : People who have determination and mental strength


Best Online Business in 2020 | Creating Web Services

Web services are services that can improve work efficiency. Have you ever thought that "I want to have a tool like that" while working? There are online businesses that sell the tools that such people need on the web.

Specialized services include translation services and copy and paste tools. It takes a few weeks to check similar sentences on the web, but if you can get the job done in minutes using web services, think "I want to buy and use."

In addition to the tools you sell for a fee, there are other ways you can make tools that you can use for free and earn advertising revenue. The more people use the tool and the more they are interested in the ads displayed on the page, the more ads they can get.

Creating web services requires programming power to create tools to streamline the process. Because many services are sold on the web, it is important to get people who want to use their own services. Many people can use it if it's free, but originality and accuracy are also needed to make a tool for some people who want to use it even after paying fees. Come on

The advantage of creating it is that you can earn long-term income, but the disadvantage is that it's hard to make and it takes a lot of time for many people to use it.

Recommended for people like this! : People with programming knowledge


Best Online Business in 2020 | Creating a Portal Site

Portal sites are sites that collect information related to that field. For example, if you have a portal site related to restaurants, you can gather information about various restaurants so that many people can see it. That way, the number of customers who are interested and will visit the shops listed on the portal site will increase. While some people are hesitant to enter the store for the first time, posting information about the store on the portal site first makes it easier for first time customers to use it.

Portal site is a system that allows you to get shipping costs from stores by increasing the number of customers who visit the store this way. Besides shops, there are also SNS portal sites. On SNS-type websites, bulletin boards are created for people who have similar problems to share information. You can get advertising costs by advertising the product there and many people are interested in the product and buy it.

There are losses that take time to gather people on the site, but once you attract customers, you can expect continuous income. Operating multiple portal sites will turn a profit and you can even start a business in the future.

Recommended for people like this! : People who aim to become entrepreneurs in the future


Best Online Business in 2020 | Creating a Smartphone Application

It's no exaggeration to say that people who use smartphones like the iPhone and Android always use applications. Some of you may have been helped by the map application or the transit guidance application.

Some applications are built into your smartphone from the start, some are free to install, and some are purchased for a fee. You can make more money by creating applications that many people use.

If this is a free application, you can get advertising revenue by paying a portion or posting an ad on the application. For example, in the case of game applications, all basic games can be used free of charge, but there are many applications that are billed by paying for items used in the game.

For paid applications, you can get profit depending on the number of downloads. Many books and teaching material applications are in a format that you can use after you pay to download and then no need to pay.

Because an application needs to be made using a programming language, it has weaknesses because it is difficult without knowledge. However, it can be said that many people download and use this application, so you can expect a lot of income in a short time, which is an advantage.

Recommended for people like this! : People who like to form ideas


Best Online Business in 2020 | Selling Information and Knowledge

If that person has the information you want that I know of, information provided by sales and the like on the Internet by you for profit. For example, you can make money by selling and buying information that even one person wants to know, such as information about money and information about raising children.

Many people are interested in information sent by famous people such as entertainers, and it is possible to attract customers immediately, but that is not easy for common people with low profiles. It is important to provide information that many people are interested in, but to get information that is purchased, it is also important to trust that information.

To increase the level of trust, it is necessary to create a homepage, blog, etc., publish a piece of information, and make people want to know more about that information. For this reason, writing skills that attract people are also important.

It is more reliable to get information from famous people for sale, and there are also methods to provide information as ghost writers when more customers can be expected. In this case, you will need a connection with a famous person.

It takes time to improve the reliability of your information and attract customers, but you can expect many benefits if you succeed with less risk.

Recommended for people like this! : People with expertise that other people don't know much about what you want to talk about


Best Online Business in 2020 | Become a Youtuber

In recent years, a profession called "YouTuber" has become a common thing in the profession that children want. YouTubers are people who earn money from advertising by uploading their own videos to YouTube, which is a video site.

The main source of ad revenue on YouTube is Google Adsence, and anyone who has a Google account can upload videos to YouTube. However, there is an age limit of 18 years or more to use Google Adsence.

All you need to upload videos to YouTube is to get a Google account, computer and internet environment, so the advantage is that anyone can get started easily and there is no risk. However, there is a demerit that because incoming advertising revenue matches the number of views, it will not become revenue unless the number of views increases.

It's hard to increase viewership, but if the number of views increases and the number of subscribers to your channel increases, you will also come to receive projects directly from the company. However, depending on the video content, you might need to consider the risk of threatening your privacy.

Recommended for people like this! : People who like to come up with interesting ideas


Best Online Business in 2020 | CPC ads

Click-per-click advertising is a business where you create ad space on your own site or blog, and get paid according to the number of people who click on the ads.

The number of website and blog visits is important for this business. If the number of visits is small, it will not cause clicks in the first place, and information will not be disseminated by reviews. Conversely, if the amount of access is stable, it will be possible to target a stable income of 100,000 yen or more per month.

This is a business that even beginners can easily start, and don't need special skills. However, cost per click advertising is a less efficient business than other means.

If you target a monthly income of 200,000 yen or 300,000 yen, you must stick to content to get more access. It is also important to send out new information every day and stick to the website design aspects.

Recommended for people like this! : People who are good at working continuously every day


Best Online Business in 2020 | Affiliate Trend

Affiliate is a system where a visitor buys an advertisement product that is posted on the site or blog that he runs, and receives a percentage of the prize. Among them, affiliate trends refer to methods of developing affiliates around world trends.

For example, advertising costs are obtained by updating the latest information in areas that people are interested in, such as entertainers and games, to attract customers and introduce products that may be requested by visitors. This advertises products from other companies, so you don't need to store your own inventory and you can get started without space or upfront costs.

In general, it is common to paste ads such as Google Adsence, Amazon, and Rakuten. When using the free blog system, please be aware that the types of ads that can be pasted may be limited.

It's hard to get a prize until you can attract customers, but once you can attract customers, you can expect continuous gifts. Every day, people who can install antennas about the latest information and update it will be suitable.

Recommended for people like this! : People who are good at gathering the latest information


Best Online Business in 2020 | Sell ​​your own products at online stores

There are ways to open your own shop on the Internet and sell products. Also known as electronic commerce, several companies registered by starting their own businesses by having their own shops on the Internet.

If you have a genre that you want to sell, you can make your own products or buy them from other companies and sell them.

If your product seems to sell, you can outsource it to another company and produce it in bulk. At that time, if you apply for a patent at the same time, you can receive an idea fee if another company wants to use the idea.

When you open a shop on the Internet, the initial cost is cheaper than opening a shop in the city. However, please note that some websites may incur store fees and fees.

Some online stores do not charge a store opening fee, so if you want to keep the initial costs as low as possible, use the site.

Recommended for people like this! : Imaginative and good people make things


Best Online Business in 2020 | Selling Products at the Auction Shop

If you have goods that are used items or products, consider selling them at auction. In modern times, there are several auction sites on the Internet, and various transactions only occur through interaction between users.

The appeal of the auction is that you can determine the lowest bid price yourself. There is no possibility that the transaction will be closed at an unsatisfactory price, and the winning bid will increase according to the bid amount, so there is a possibility that you can trade at a price higher than expected.

In addition, you do not have to create a detailed product page like you do in an online store or EC site. Pages are automatically created by including photos, descriptions, prices, etc. of products, so even beginners can use them easily.

However, because auction sites have different product and user trends, you have to change the website used depending on the auction item. Also, if you want to get regular income, it is necessary to secure suppliers for these products, and it will take time to prepare before shipping, so it will need to work steadily.

Recommended for people like this! : People who understand the price of goods


Best Online Business in 2020 | Reseller

This is also a great business for reselling products purchased at cheap prices on overseas booking sites or auction sites, etc. To your own site or Japanese auction site. This business is also called "Sedori", and makes a profit by selling goods that are bought at low prices.

For example, one of the biggest auction sites in the world is eBay. On eBay, there are many products that can be purchased for less than half the selling price in Japan. In other words, if you set market prices in Japan and abroad, you can benefit from the difference in profit between buying at a low price and selling at a high price.

However, foreign sites are written in English, so you should be able to read and write English to a certain extent. In addition, when buying products on foreign sites, transactions are carried out in foreign currencies, so the purchase price will change depending on whether the yen is weak or strong.

Another disadvantage is that if you do not sell the product that you bought, you must save your inventory. There are also methods for purchasing products after receiving an order, but it should also be considered that products shipped from abroad need to arrive in Japan.

That said, it is an interesting point that you can acquire the skills to import individuals from abroad and get the technology to open your own shop in the future.

Recommended for people like this! : People who are good at reading and writing about English


Best Online Business in 2020 | Photographer

Photos taken with your digital camera or cellphone can also be sold as products. There are also websites on the Internet where you can sell photos, videos, etc. Like an online shop.

The advantage of selling photos is that you can automatically make a profit as soon as you sell them. Photos and videos don't get worse, and you don't need to have inventory if you have data. In other words, it is a business that sells this photo that can be done in a way that reduces risk.

If you like taking photos every day, you can make money as part of your hobby. However, for photos to be sold, you need to take high-quality photos and request. At first, you might not be able to understand the subject and how to take a picture, and you might have difficulty.

Recommended for people like this! : People who like to photograph


Best Online Business in 2020 | Make a LINE stamp

LINE stamp is a stamp used in the free LINE communication application. By making a LINE stamp and selling it for a fee, you can receive a share of the sale.

In particular, 50% of stamp sales sold at LINE STORE, which is 30% lower than the commission, is given to the stamp creator. LINE is currently used by many people as a communication tool, and many types of stamps are used in it.

Famous creator stamps are also commercialized as goods, and if you can sell them, you can make a fortune. To sell LINE stamps, you must register at the LINE Creators Market and pass stamps made for screening, so you will need a number of planning and careful abilities.

However, it may take several months for the examination, so the disadvantage is that it does not produce a profit immediately.

Recommended for people like this! : Inspiring people who like to design


Best Online Business in 2020 | Sell ​​your agency services with your technology as a product

Sell ​​your agency services with your technology as a product

Agency services are sales-type businesses that receive rewards by doing what you can. In recent years, more and more engineers, writers, illustrators and other people with technology are taking orders for jobs on the Internet and sending them to clients.

For those who have skills and areas of expertise that are useful for people, the advantage is that they can receive many orders for work and make a living while working from home. However, there are many jobs on the Internet that have low unit costs, and the disadvantage is that it is difficult to profit without polishing technology.

Recommended for people like this! : People who are smart or specialize in a particular thing


Best Online Business in 2020 | Use crowdsourcing sites to accept work orders

Crowdsourcing is a form of business that allows you to complete transactions such as work orders and orders on the Internet. At present, there are only a few crowdsourcing sites in Japan, and jobs in various fields have been ordered. This is a system where you can receive gifts after giving birth by choosing what you can do from it and taking orders.

All you need is a personal computer and an Internet environment, so anyone can get started quickly and perfectly as a side job. Because of the various jobs posted, such as work as a writer who writes sentences, engineering work such as creating a web site system, and a simple project that only answers questionnaires, orders can be ordered at my convenience. You can

However, communication on the Internet requires a certain level of communication skills, and the ability to understand the customer's intention is important. Also, depending on the project, there are jobs with low unit prices, so it is necessary to check the job details and prizes in detail.

Recommended for people like this! : People who specialize in writing sentences and creating websites


Best Online Business in 2020 | Create a summary site

When searching for something you want to know on the Internet, many people will refer to the summary site. Summary sites are websites that publish pages that summarize information about a particular genre, and there are several websites where general users can post articles.

If you use a website like that, you can earn advertising revenue according to the number of views, so creating a summary site is also included in a good internet business. This is a business that even beginners and those who are not good at typing can work because they only collect information on the Internet.

However, it can be said that it is difficult to get the number of views unless you have the ability to distinguish the information needed. Genres that are very attractive to the world tend to grow in number of views, but because there are many suitable rivals, it will be necessary to choose the genre carefully.

Recommended for people like this! : People who have the ability to search and organize the information needed


Best Online Business in 2020 | Collect points on your pocket money site

An allowance site is a site where you can redeem points that you have collected on the site for refunds of cash or coupons. By using the services offered on the site, unique points for the site will be accumulated.

If you have a computer or smartphone, you can start immediately without special skills, and you can collect points just by doing hard work. However, you can only get a gift of a few thousand yen a month just by collecting points.

Some sites can accumulate more points by using services that are introduced on the site or introducing others, so please compare the systems of each site before using it. If you plan properly and use it, you might be able to save more than 10,000 yen in a few days.

Recommended for people like this! : Clever person in a patient job