What is it that really makes a customer be willing to pay more – and stay? The answer lies in how they perceive the value they get.
In the field of communication and campaigns on different channels, it is quick to focus only on functions and price, but we have to remember that customers are far wider in value assessment.
According to The Elements of Value written by Eric Almquist, John Senior and Nicolas Bloch, there are 30 different value elements, divided into four levels of what is called the Value Pyramid (a kind of extension of Maslow's needs pyramid):
Functional Value
Functional value is the lowest level of value, and consists of the elements that help the customer solve a problem.
An example of such value communication may be:
“Save Time on cleaning with our new robot vacuum cleaner’
Emotional value
And up in the pyramid, we'll find the level of emotional value. This consists of elements that improve the emotional state of the customer and may be increased well-being, more joy or reduction of stress.
For example, emotional value can be communicated as follows:
“New Sunday with the girlfriend and let the new robot vacuum cleaner get rid of the cleaning”
Life-changing value
The next at the top of the pyramid is the level of elements of life-changing value. This is value communication to support personal development, such as achieving greater goals, getting more hope or motivation.
For example, this could be communicated as follows:
“A PT with us will give you the motivation and guidance you need to get in your best form”
Social impact
Having an impact on society is the highest level of value, and that is what makes the customer feel that they are contributing to the community.
Social impact is not always easy to offer or communicate, but when possible it gives great effect. An example of such value communication may be as follows:
“By shopping with us you help strengthen a local company”
The more of the elements higher in the pyramid you hit, the greater the customer's willingness to pay and loyalty to your brand. It is therefore important that value communication not only uses functional value but also focuses on combining elements at different levels of the value pyramid.
Functional value is, of course, important, but it's just rarely going to give you any advantage of competition. Therefore, it is important to vary and communicate value clearly with their customers in order to compete in a tough market.
Do you need help in designing web pages, advertisements or newsletters with strong value communications? Contact us at INEVO and we will help you.