When it comes time to make a purchase, we as consumers tend to relate product quality to price. On the other hand, sales departments know that if they think of only these two attributes, long-term sales will not increase.
To solve this dilemma, marketing came up with a solution: create consumer value. As marketing professionals, we understand that consumers are increasingly motivated to look for products and services that aggregate such “value”.
But, for the consumer, what is “value”?
Getting straight to the point: it depends. To make it easier to understand, think of a coffee machine for example. It may come in different colors and designs, but its basic functionality (making coffee) remains the same.
So the purpose of the machine is the same for you and everyone around you, right? It turns out that if purpose doesn’t change, consumers, in turn, have a perception of value that may differ from one another.
For one consumer, the value of the machine can be in the long term benefits gained. For another, the convenience of having a coffee ready in a matter of seconds. There are those who see the machine as an immediate solution to a problem, and others who see only the price.
By that, we mean that if the functionality of a product is the same for all consumers, the perceived value differs. Therefore, for marketers, communicating consumer value is much more important than just presenting the characteristics of the product itself.
It is also important that we understand the initial value a company relays happens when the consumer is shown a product or service. However, it is normal for this to change as the interaction (between company and consumer) intensifies.
This is exactly why it is critical to be aware of ways to create engagement at all times when a person interacts with your products, making them recognize the value at every moment of that interaction.
How to create consumer value?
First, keep in mind that your consumers will not buy something from you because you or a salesperson wants them to do so. Because customer value is subjective, it can only be influenced – never controlled.
With that out of the way, comes the second point: Creating real value for the consumer is recognizing what exactly it is that the consumer values. Basically, it is trying to understand:
- How does the consumer see your competitor’s product?
- What is important to the potential consumer when making a purchase decision?
- Which is more important: price or benefits?
- What are the needs of your consumers?
Next, think about the following:
- Is your company able to offer more than what your competitors’ can offer?
- Is your company good at delivering what consumers deem as important?
After you’re able to answer those questions, there is a strategy you can use to create value for your consumers. Seen today as one of the most efficient in marketing, making suggestions to solve a problem is a widely used strategy.
You’ve most likely heard that marketing first creates a need and then shows consumers how their products can meet that need. Simply put, what we mean is that creating consumer value has to do with understanding how a company can help a certain need be met.
With that in mind, give potential consumers a good reason to trust your products and/or services. In order to be successful, it is essential to be aware of two factors:
- The needs your consumers are trying to meet.
- The needs they have but may not realize it.
By showing your consumers that you already have a solution for their needs, the chances of creating a connection between you are much greater.
A great quote from Guy Kawasaki, one of the biggest names in marketing and technology and one of the Apple employees responsible for marketing the Macintosh computer in 1984 states, “ If you provide enough value, then you earn the right to promote your company in order to recruit new customers. The key is to always provide value. ”
So do you still have any doubt that our role as marketers is to show how our company’s products and/or services add value to the consumer?
And since we are talking about value, make sure you check out our other InSights Articles about marketing and engagement strategies that you can implement to help build consumer value.
‘Till next time!