“Different People Value Different Things” Ron Kaufman on The Four Categories of Value
By Ron Kaufman
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Transcript of “Different People Value Different Things”, from a keynote speech by Ron Kaufman for the SWIFT Operational Forum Asia event in Singapore.
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The action steps you design and take are intended to create more value. But in our complex and diverse world, different people value different things. Some people say, “Just do it fast.” The next person says, “Don’t rush me.” One says “I want the cheapest option.” Someone else says, “I’ll pay more. Tell me what the benefits are.” Or, “I want to know everything possible.” And the next person says, “Just help me make a good choice.”
Different people value different things. How do we solve for that? Easy. We eat pizza. How many people in the room like pizza? Is that a good pizza? Oh, I’m sorry. You’re a vegetarian. Okay. Is that a good pizza? No. Okay, you want the meat. Is that a good pizza? We’re getting better.
What if you wanted one of the world’s best pizzas? You want to take your family at least one time in their lives to get the thin crust, the fresh mozzarella the spicy olive, the thick tomato.
Where do you go to get the world’s finest pizza? Italy. Italians don’t say Italy. They say Napoli. People who live in Napoli don’t say Napoli. They say Sorbillo’s, the restaurant that wins the awards for having the best pizza on the planet.
How many of you when I said, “Where do you get the best pizza in the world”, in your mind, you saw this? Anyone? But wait. If they don’t sell the world’s best pizza, how come they are able to sell so much pizza? It’s a different kind of value. Here, the product is fantastic. Muah. Here, it’s the delivery that’s convenient and fast and easy to use. Two different categories of value.
Third category. “Your pizza’s here. You owe me money. $46.25. You’ve got to pay me now.” How much do you want to give that guy? $46.25. Nothing more. He doesn’t deserve it. But what if the same guy… “Hi! Dinner’s here. Hot pizza.” He sees your child. “Hello there. Do you like pizza? Oh, I do too. I brought you a beautiful pizza for dinner. $46.25 sir.” How much are you going to give him? $46.25. Financial Services, I tell ya. But the rest of us at home, you’re going to give him what? $50. Now, why would you give him the extra money? Did he give you a better pizza? Faster delivery? No. But he created more… value in another category.
And then there’s a fourth category. “Good afternoon. Pizza Hut. May I help you?” “Yes, hi, Mr. Kaufman calling. I’d like to order two special ingredient large pizzas.” “Is this Mr. Ron Kaufman calling?” “Oh, yes, it is. How did you know?” “Oh Mr. Kaufman! You’re one of our loyal customers. We love serving you.” “Well, I love calling you too.” Hold on. How did she know it was me? Inbound Caller Identification connects to the CRM database. She can see my order history. But when I said, “How did you know?”, she didn’t say, “We have Inbound Caller Identification that connects to the CRM. I can see your order history.” She said, “Mr. Kaufman, you’re one of our… loyal customers and we… love serving you.” “I see. Well, thank you. I’d like to get two large special ingredient…” “Mr. Kaufman, same ingredients like last weekend?” I say, “Yeah. Those kids are over here again. And more of them this time.” “Mr. Kaufman, if there is more, will two pizzas be enough? Should I make it three?” I say, “Yeah. Good point. Thanks for taking care of me.” She goes, “Do you want to use the same credit card this weekend that you used last weekend?” I said, “Yes, I do.” “And you’re calling from home, right?” I said, “You know what? That’s why I call you guys.” We have a… relationship. You know me. You care about me. You look out for me. You appreciate me.
Now, what have we got here? Four different categories of value. One category is the actual pizza or the actual financial products and the innovations that you create. The second category is the delivery systems. The network, the way that you’re actually able to show up on different devices and different platforms and integrate. The third category is: What is it actually like to work with your human beings? Are people polite? Are they friendly? And it doesn’t have to be face-to-face or even over the phone. Just look at the text that actually shows up on a screen and you’ll know what kind of a mindset somebody had when they wrote that text.
And then, there is the relationship, which is incredibly important in our industry because that’s the future that’s always being created. Now, when you put these four together, which we elegantly call the four categories of value, that’s what makes the customer experience. And the question for you is: In which of these four categories should you step up?
In fact, if I put The Six Levels of Service next to the four categories of value, and I say, “The stairs are always flipping down in all four categories.” Where would you say, your organization or your department now needs to step up? Where are you? Only barely maybe at the EXPECTED level and one slip and you’re going to be at BASIC destroying value rather than creating value. Where do you see the opportunity to step up to a higher level and create unexpected value? Ready? Talk to your partner. Go.
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Other Articles you may enjoy:
- “How Good or Bad is the Service You Provide” by Ron Kaufman
- Five Best Practices for Creating Unbelievable Customer Experiences
- What is your responsibility in the “Fourth Humanitarian Revolution”?
Ron Kaufman is the New York Times bestselling author of “UPLIFTING SERVICE: The Proven Path to Delighting Your Customers, Colleagues and Everyone Else You Meet”, and is the founder of Uplifting Service.
Visit http://www.RonKaufman.com/demo to learn more about Ron, watch a keynote speech, and hear from his clients.
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