The perceived value of value

As I discussed in former blog posts about “five lessons from B2C” and “the good life”, there’s a lot that business presenters can learn from consumer marketing. A key lesson is that there is no universal standard that defines value.

I have worked in high-tech companies for many years now, and although me and most of my fellow marketers proudly call ourselves “customer centric”, we tend to assume that we always need to impress our audience with the latest ‘n’ greatest technology and with the best in class performance. And we use to call this “value”.

But lately I presented to an industrial customer who didn’t get impressed by the Mbps, GHz or PPI figures, the complex system architectures and the tons of product features he was bombarded with, but kept asking for a simple, stable and field proven solution. To this specific prospect, “value” just meant that the product would flawlessly do what it was supposed to do – nothing more, but also nothing less. And at a reasonable (which is not the same as the lowest possible) cost.

This is exactly what is happening in B2C too. Starbucks is offering good coffee at a “bearable” price (but not cheap at all). Their value offering is in the quality and the choice of their products, combined with a few extra differentiators (or benefit experiences) such as e.g. free Wi-Fi.

starbucks

McDonald’s is a similar case. Why would you spend big money to take your young children to a three-star restaurant if there’s Happy Meal® box and a PlayPlace at walking distance?

And there is also the story of Harvey’s: a half-a-century old hardware store in Massachusetts that sells commodity goods like nuts and bolts, but manages to obtain a revenue per square meter that is almost four times higher than its large-scale competitors  – by pricing products based on the (perceived) value of the benefit experiences they provide to their customers.

Sometimes good is good enough. No thrills, but also no surprises. With a few extras. No need to compete with players in a different league. So, hard value doesn’t exist. Value is in the perception of the beholder. It is a subjective concept that lies squarely in the minds of your customers and it’s always related to the context of their business, working or living environments.

So, as a B2B presenter, you’d better adapt your content and adopt your tone to the needs and expectations of your audience. And give them value for listening to you.

Other articles about the companies mentioned in this post:

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2 thoughts on “The perceived value of value

    • Too right, BLC!

      I once saw a US comedian at the Melbourne Comedy Festival (in Aus.) mocking the UK for (at the time) having only a handful of TV channels. He looked bad because if he’d done any “research”, he’d know that Australia had about the same number of channels as the UK. (Way to go, dude – mock your audience!)

      Sadly, both the UK and Aus have since got many more channels (though still “only” about a dozen free ones), which are about 95% trash. So (depending on the population size, how much they watch TV, etc) even having 10 quality channels might be too much to ask.

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