Everyone has a product or service to offer and we all believe that our product is the best… or at least the best fit for someone. So how do we help our potential customers understand our value?
PERCEIVED VALUE DEFINED
Perceived value can be defined as “a customer's opinion of a product's value to him or he”. So basically, how much your customer thinks your product or service is going to better their lives.
UNDERSTAND YOUR AUDIENCE
The first key to helping your audience understand the value of your product is making sure that you are speaking to the correct audience. If you are trying to sell a Ferrari to a Honda Civic owner, you are not going to have a high level of success. We’ve found that most products, services, and customers can be placed into one of three categories.
The value tier can be defined as “a good product at a good price”. If we use cars as an example, you might think of a Honda or Toyota. These cars are known for their reliability, longevity, and reasonable price points. It would not be unusual for you to see a commercial on television not only advertising one of these products, but also the great discount that was being offered.
Value products speak to their customers by offering discounted reliability.
We’ll define the premium tier as “pay more – get more”. When understanding a premium brand, some may confuse them with a luxury brand, so let’s make sure we understand the distinction. To continue with our car analogy, a premium brand could be something like a Cadillac or a BMW. While the price point is certainly more than that of a Honda, you are also receiving a significant upgrade in your product. This is clear when you see or test the product and is clearly articulated by the seller.
Premium products speak to their customers by educating them and helping them see the distinction in their product.
Luxury products are all about scarcity and experience. This could be exemplified by something like a Ferrari or a Bentley. While the features may not seem to be any more extravagant than something in the premium tier, there is an attention to detail that won’t be found anywhere else. This attention to detail produces an experience that cannot be reproduced. The products are scarce in number and rely on their brand recognition. You will likely never see an advertisement for these products, they simply survive on their reputation.
Luxury products speak to tehri customers about an experience that they will not find anywhere else.
CREDIBILITY IS KING
While this may sound simple, it is at the foundation of every great company. You may have a great product, but if you are not a reliable company it simply doesn’t matter. You must be willing to stand behind your service or product and deliver on what you say you are going to do, when you say you are going to do it.
ASK OTHERS TO SHARE
To this day, there is nothing more valuable than the word of mouth referral. Ask your customers to refer their friends and colleagues and ask them to give online reviews. While this sounds simple, it will probably take a little bit of work and persistence. But look at it this way, that review is the better than any marketing dollars you can spend.