This is why people are not buying your product. But there is a way to fix it
Many companies seem to assume that their target market decides on which product or service to go with, based on their particular features. However, while the features of a product have relevance when it is being differentiated from others of the same kind, it is not the first thing a consumer looks for when making a choice about which brand to look at.
The reality is, when consumers are looking for a particular service or product, most are searching for ‘benefits’ rather than features. In other words, they’re looking for the product that will deliver them the highest perceived value.
For a business to be able to communicate value to its customers, it must first understand what that is.
What is customer value?
Once again, customer value does not refer to products’ qualities or features. A product’s features, including price, is only one of the many value drivers that can influence how much benefit a consumer perceives that a product delivers.
In simple terms, customer value is an overriding sense of satisfaction. It’s the result of a subconscious measurement that a consumer makes when they consider the difference between what a consumer feels they get from a product, and the action they must take to get it.
What influences customer value?
Each consumer is different and so what they value is subjective. However, to stay competitive businesses must understand their market well enough to create value propositions that make their particular audience choose them and not their competitors. For example, some factors that influence consumers to lean towards or away from a product include marketing, branding, price, past or current experience with the product or something related, and personal bias based on word of mouth.
Obviously, like consumer taste, these factors cannot be controlled but only influenced. However, to create the most attention and effectively drive the sales it desires, it is important that a business tries to understand what their particular audience values and consistently looks for avenues to deliver it to them.
A good example of how a clear communication of value can benefit a business is Apple. When Apple brings out a new phone, consumers presume that it will be easy to use and of a certain level of quality. However, if another smartphone brand entered the market and created a nearly identical phone, it would likely struggle to compete because the consumer would not have the same perceptions of its brand. This scenario also indicates why products are not just identified by their features. Even if the second anonymous phone was cheaper than its Apple counterpart, it would still not create the same perception of value for consumers.
As consumer value is the main deciding factor on whether someone purchases a product, it is easy to see why it’s so crucial to understand.
Do you feel like your particular product or service is worthy of attention but your marketing and advertising is not generating the consumer conversions it deserves?
When you’re ready, our team is here to help you deliver the value you need to succeed.