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What is the connection between value and customers’ willingness to pay?
The answer lies in perception. Value encompasses a product or service’s benefits, while willingness to pay reflects how much a customer is prepared to invest for those benefits. As we discussed last week, your offering typically delivers multiple areas of value, and the more value you present, the better the outcome. Bain & Co. suggests that delivering four or more elements of value can significantly enhance customer loyalty and drive revenue.
However, it’s important to recognise that value is highly personal. What your customers truly appreciate about your offering and what they are willing to pay a premium for may differ from your own assumptions or current emphasis. By understanding this personal aspect of value, you can forge deeper connections with your customers.
Therefore, ensure your marketing materials highlight all the perceived values your offering addresses.
In sales conversations, it’s vital to identify which specific values resonate most with your prospects and their impact on their decision-making. This approach helps you align with customer expectations and effectively steer the conversation.
Next week, we’ll explore how the values differ between business-to-business and business-to-consumer contexts.
Resources
Register for the webinar in August The Nudge Effect: Psychological Strategies for Effective Marketing.
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