Every potential customer seeks value from your product, just as they seek value from every product or service they are willing to pay for.
When customers evaluate a product or service, they almost always weigh two important aspects against each other:
In most cases, customers try to find a sweet spot between the two if they plan to make a purchase. That’s perfectly fine and something customers will always do. However, your company can do things to get them to find this sweet spot more often and get more people to make a purchase.
Besides the obvious, the job of the marketer is also to sell the product for more money. For that reason, many marketers tend to focus a lot of their time and energy on managing only one side of the dilemma the customers have — the price.
Most marketers opt for raising the price, as this will immediately give a significant boost to profits. Naturally, this assumes that the price change won’t put off a considerable portion of the customer base. As long as the increase is reasonable, this shouldn’t be a problem.
That’s why marketers use this method more often than others. It stands to reason as this is easy. Pricing only consists of managing a relatively small set of numbers, in most cases.
On top of this, pricing analytics and tactics are now much more evolved and getting better with every passing year. This can only mean that changing the pricing model and increasing the product’s price is becoming less likely to alienate a significant portion of the existing and potential customer base.
This all sounds good, but you still need to do more. You need to truly grasp what consumers value if you want to improve sales and grow the business. Changing the pricing model can only be beneficial in the short term and won’t benefit your brand.
Most companies are well aware of how difficult it is to pinpoint what their potential customer base values. You can do a lot of market research and spend endless hours trying to gain insights from how customers behave with the competition and still end up with meagre amounts of valuable insight.
It is simply too difficult to pin down what consumers want from a business like yours and the products or services they want you to offer.
How can leadership teams actively manage value and devise ways to deliver more of it? What functional (saving time, reducing cost) or emotional (reducing anxiety, providing entertainment) value can they bring to the customer?
As always, they can use a wide variety of methods. For instance, you can employ the tactic known as discrete choice analysis.
This method is relatively straightforward — it simulates demand for different combinations of product pricing, features, and several other components. That way, you end up getting clear insights into which component combinations will yield the best results. Then all that’s left to do is use your findings in practice.
All in all, this and many other research tactics are helpful and powerful tools, but they have a significant flaw — they are designed to test consumer reactions to preconceived value concepts.
The problem here might not sound simple to a leader, but it’s very self-evident to a marketer. The marketer is already accustomed to finding these concepts. The real problem is coming up with new ideas, and this still requires anticipating other aspects and features people will consider as valuable.
However, there is a solution for this, and we have it.
We’ve developed a worksheet, a tool that can help you find the traits that effectively describe your brand’s identity. Moreover, it can also help you define the unique characteristics of your product or service.
By doing that, you can effectively get closer to finding what customers want from your brand and your products. You can pin down the value they are looking to get and thus improve your company as a whole. You will effectively increase your sales and continue growing your brand.
The tool we have is simple. We’ve done the hard work and found 30 elements of value we call traits. These traits are fundamental attributes in their most essential and discrete forms.
To make things simpler, these traits are categorized into four distinct areas:
Many of the traits in these categories are focused inward. They effectively address consumers’ personal needs — which is precisely the thing that will show you what consumers truly value.
These inwardly-focused elements are also the things that help other companies succeed. For example, at the core of Fitbit’s exercise-tracking products is the life-changing element of motivation.
However, there are still many outwardly-focused traits — they effectively address the needs consumers have when dealing with the outside world.
For instance, functional traits like organization are at the core of businesses like The Container Store and Intuit’s TurboTax. They both strive to help customers deal with the world in a better and more effective way.
Many of these traits can overlap between the four categories, and this is, in fact, desirable. The real value for you is to understand the relationship they have with one another.
The benefit of understanding which of these traits apply to you is vast, as you can then apply them to your brand or product. This will, in turn, provide more profound meaning to the customer and show them the precise value they are looking for — the exact thing you want them to achieve and the very thing that will help your business thrive.