The truth about value
Whatever you sell, your market is over-served and under-differentiated. There are too many other businesses selling what you are selling and most of you look alike, sound alike and charge about the same price.
Ultimately, customer ownership and business profitability is about creating, delivering and communicating compelling value that grabs your target customers, clearly differentiates you from your competitors, makes you famous and grows your bottom line. Customers demand value and every business promises it but there’s a huge lack of clarity about what value really is.
Let’s keep it simple. There are only three kinds of value – functional, emotional and financial. That’s it!
You deliver functional value when you:
- sell products, services and experiences that actually work for your target customers,
- are open or available when they need you,
- provide the information, coaching and encouragement they need to wisely choose and effectively use what you sell. Be their ‘caring coach,’
- create policies, systems and processes that make you easy, efficient and consistent to do business with.
Next is emotional value. Most businesses struggle with this one. They think it’s some airy-fairy thing that can’t be defined and they’re dead wrong!
Quite simply, you deliver emotional value when your customers feel better about themselves and the world every time they do business with you, and every time they use what they bought from you. That’s it! If you’re not delivering emotional value, you’re not connecting with your customers on an emotional level, which is where most of the buying decisions are actually made or strongly influenced.
How could you brighten each customer’s day with simple acts of kindness, joy and gratitude? Whatever you sell, people come to you for that, plus joy! Never underestimate the power of joy. It may sound corny, but it will make a big difference in their day and people will always remember how you made them feel.
Financial value is number three. Most businesses put it as number one, but it has to be number three, because it’s a function of the previous two.
You deliver financial value when your customers believe they paid a fair and competitive price for all the functional and emotional value they got from you. If you don’t deliver functional and emotional value, there’s no price low enough to be good enough.
So, the question is, are you delivering the compelling combination of functional, emotional and financial value that makes you the wise choice for your target customers? If not, what needs fixing in your business, who will fix it and by when?
Then, when you’ve done the work, you need to effectively communicate your compelling value story in everything you do. There’s no point being the best if you’re also the best kept secret. If you’d like a little coaching help with this important process, I’m easy to find at [email protected].
That’s it for this week. Stay safe. Live brilliantly and do at least three important or kind things each day!