According to a very old story, when asked by a customer how much a job would cost and how long it would take, a carpenter replied:
“I can do it three ways: good, fast, and cheap. Pick any two.”
Which raises the question, is it possible to provide the best product AND the best price AND the best service? Probably not, is my guess, but that doesn’t stop a lot of small businesses from claiming they do.
Three Primary Components of Value
In every transaction, customers look for value in 1) product/service quality, 2) price, and 3) customer experience. These are also the things they talk about when they review a business or talk about it on social media.
- “Their food is great, but the servers are so rude.”
- “Prices seem high, until you see the beautiful job they’ve done.”
- “I waited an hour on the phone today, just to find out they hadn’t even processed my order. Who cares how inexpensive my new computer is if I never get it?”
When customers consider doing business with you, your brand should create expectations that align with the actual experience they will have. If low price is the main benefit you offer, your brand should reflect that. The same can be said for product or service quality and customer experience.
Value Perception Index
I ask my new clients to complete this Value Perception Index in order to help me better understand their business.
When customers choose (your business) for the first time, what’s most important to them? Rank by percentage (must add up to 100%).
- Product/Service quality ___
- Price ___
- Customer experience ____
The next question looks almost the same, but is slightly different in a very important way.
When customers return to (your business), what’s most important to them? Rank by percentage (must add up to 100%).
- Product/Service quality ___
- Price ___
- Customer experience ____
I do this because it’s not unusual for customers to be attracted to a business for one reason and then find out that they really value something different; something they didn’t expect.
Example
One of my clients, Melissa Terzi of Braman Group LLC, is in the marketing incentives business. To marketers in search of an incentive to offer in a campaign, she sells consumer incentives that have a high perceived value but a low actual cost.
The low price attracts marketers the first time, but once they start to work with her they realize that she provides tremendous help at getting their campaigns off the ground and making them successful. This is extra, unexpected value. At that point, customer experience becomes important in addition to the low prices.
Because this change in perception is so important, we offer prospects a free strategy session with Melissa so they can start to appreciate the additional value of doing business with her, even before they make their first purchase.
Complete the Value Perception Index Yourself
I encourage you to complete the Value Perception Index yourself. This will require you to take a very honest look at your business and why people are doing business with you. Then, see if your brand position and website content are aligned with the results.
Also, have each of your employees complete the Value Perception Index, on their own and anonymously. You may find out that everyone in your organization shares the same ideas about how your business is perceived by customers.
You also might find out that people in your organization have diverse views of how your customers perceive you. If that is the case, you could have serious problems, such as:
- Different employees are presenting the company in different ways
- Your brand is not aligned with what customers actually perceive
- Your business has no effective brand position in the marketplace, which makes it very susceptible to losing market share to competitors
This little exercise can be amazingly powerful. In just a few minutes, it can help you rethink your brand position and your content strategy.
If you need help aligning your brand and content with your Value Perception Index, contact me now.
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