The Psychology of Customer Perceived Value [Infographic]

Customer perceived value revolves around the customer's belief that a product or service has the ability to meet their needs or expectations ... Logo-Full(Color) Skiptocontent English 日本語 Deutsch English Español Português Français ContactSales Login CustomerSupport About AboutUs Careers ContactUs InvestorRelations ManagementTeam Home Software Software TheHubSpotCRMPlatform AllofHubSpot’smarketing,salesCRM,customerservice,CMS,andoperationssoftwareononeplatform. FreeHubSpotCRM Overviewofallproducts MarketingHub Marketingautomationsoftware.Freeandpremiumplans SalesHub SalesCRMsoftware.Freeandpremiumplans ServiceHub Customerservicesoftware.Freeandpremiumplans CMSHub Contentmanagementsystemsoftware.Premiumplans OperationsHub Operationssoftware.Freeandpremiumplans AppMarketplace ConnectyourfavoriteappstoHubSpot.Seeallintegrations Pricing Resources Resources Education Blog Ebooks,Guides&More FreeCourses&Certifications InboundMethodology WhyHubSpot? CaseStudies WhyChooseHubSpot? Services Onboarding&ConsultingServices HireaServiceProvider UserResources PartnerPrograms DeveloperTools Community About About AboutUs Careers ContactUs InvestorRelations ManagementTeam Startfreeorgetademo English 日本語 Deutsch English Español Português Français ContactSales Login CustomerSupport Marketing Sales Service Website Subscribe SubscribetoOurBlog Stayuptodatewiththelatestmarketing,sales,andservicetipsandnews. SubscribeviaEmail SubscribeviaEmail Marketing Sales Service Website EmailAddress We'recommittedtoyourprivacy.HubSpotusestheinformationyouprovidetoustocontactyouaboutourrelevantcontent,products,andservices.Youmayunsubscribefromthesecommunicationsatanytime.Formoreinformation,checkoutourprivacypolicy. ThankYou! Youhavebeensubscribed. Startfreeorgetademo Sales|5minread ThePsychologyofCustomerPerceivedValue[Infographic] WrittenbyEmmaBrudner @emmajs24 Imagineapersonsittingdowntoalobsterdinnerinarestaurant.Havetheimageinyourmind'seye?Good. Now,whatwasyourimaginarydinerwearing?Acollaredshirtanddresspants?Orrippedjeansandahoodie?Next,thinkoftherestaurantyouconjuredup.Wasitupscale?Oralocalhole-in-the-wall? Becauselobsterisconsidered"fancy"food,I'mwillingtobetmostofyoupicturedyourdinerdeckedouttotheninesinanupscaleeatery.Today,itgoeswithoutquestionthatlobstermeansluxurious,high-quality,andvaluable. Butitwasn'talwaysthisway.Inthe17thcentury,lobsterwasfedtoservantsandprisoners.Even200yearslater,theshellfishcostlessperpoundthanBostonbakedbeans,andwasdishedouttohouseholdcats. SohowintheworlddidlobstergofromfoodfitforFluffytoadesirabledelicacy?AccordingtotheinfographicbelowfromVouchercloud,acombinationofscarcityandcleverrebrandingsentthecrustaceans'valuesoaring. CustomerPerceivedValue Customerperceivedvaluerevolvesaroundthecustomer’sbeliefthataproductorservicehastheabilitytomeettheirneedsorexpectations.Thisbeliefcanimpactdemandandpricingforaproduct. Let’sdiscusstheterm"perception"—whichdescribesone’sunderstandingorimpressionofatopic.Ifthebenefitthecustomerexpectstoreceivefromtheproductishigherthanthecustomer’sperceivedcost,thatproductwillhaveapositivecustomerperceivedvalue.Tomaintainahighlevelofcustomerperceivedvalue,aproductmustprovidephysical,logical,oremotionalbenefitforthecustomer. Soifacustomerinherentlybelievesaproductisvaluable,theymaybemorewillingtopayapremiumand/orexperienceenjoymentfrompurchasingorusingtheproduct.Let’sreturntothelobsterexample. Thisstorycontainsanimportantlessonforbothsalespeopleandmarketers:Whatpeopleperceivetobevaluablelargelyhingesonpsychologicaltriggers.Scrolltotheendoftheimagetodiscoverthefivemainfactorspeopleusetodeterminevalue,andwhywe'resometimeswillingtopaymorefortheexactsameproducts. Nowlet’sdiscusshowyoucanleveragecustomerperceivedvaluetobenefityourbusiness. 1.Time Timeisavaluablecommodity.Infact,workingadultswhospendmoneyontime-savingpurchasestooutsourcetediousordislikedtaskshavegreateroveralllifesatisfactionthanthosewhoprioritizematerialspending.Whatdoesthatmean?Consumersvaluetheirtimemorethanthings. Evenifyoudon’tnecessarilysellanofferingthatcandirectlygiveconsumerstheirtimeback(suchasaserviceyourcustomerscanoutsourcetoyourcompany),youcanfocusontime-savingorconvenience-relatedqualitiesofyourproduct.Doingsocanhelpyouappealtothosewhovaluetheirtime,potentiallyincreasingthecustomer’sperceivedvalueofyourproduct. Forexample,let’ssayyouworkforacompanythatsellspayrollprocessingsoftware,andyourplatformallowspayrolladministratorstocuttheirprocessingtimeinhalfcomparedtohowlongittooktouseacompetitor’ssoftware.Thistimesavingsshouldbeamajorsellingpoint,allowingcustomerstoperceiveyourproductashigher-valuebecauseofthetimetheywillsavebyusingit. 2.Price Thoughcustomerperceivedvaluefocusesmoreontheperceivedcostoftheproductthanthehardcost,thepriceofaproductisoftenacontributingfactorinhowacustomerperceivesitsvalue.Herearesomeperceived-valuepricingstrategiesthatcanimpactabusiness: Premiumpricing—Bychargingapremiumorconsistentlyhighercostforproducts,acompany’sproductsmayseemmoredesirabletoconsumersbecauseitcreatesanairexclusivity.Forexample,AppleconsistentlychargesmoreforproductssuchastheiPhoneandMaccomputers,whichleadstotheirproductsbeingperceivedashigherquality. Valuepricing—Somecompaniesfocusonlowerormoreeconomically-pricedproductssocustomersbelievetheyaregettingagreatdeal.Becausecustomersfeeltheyaregettingagreatdealandstillreceiveaqualityproduct,theperceivedvalueishigh.AfewbrandsthatdothisparticularlywellareTraderJoes,whichsellsitsownbrandproductstokeeppriceslow,andCostco,whichsellsproductsinbulktokeepcostsdown.Bothbrandspasssavingstotheircustomersthroughvaluepricing. 3.Reputation Acompany’sreputationandoverallsenseofcredibilitycangreatlyimpactcustomerperceivedvalue.Brandreliabilityoftenhasapositiveeffectoncustomersatisfaction,whichcanleadtobrandloyalty.Inadditiontoofferingqualityproductsandservices,ereareafewfactorstoconsiderifyou’relookingtoimproveinthisarea: Partnerwithtrustedbrands—Ifitsuitsyourbusiness,considerpartneringwithothercompaniesthathaveasolidreputationandasimilarcustomerbase.Doingso(forsayacross-promotion)canimproveyourcompany’sreputationbyassociation,increasingperceivedvalueandexposingyourproducttoabrandnewaudience. Relyontestimonials—Thestoriesofsatisfiedcustomersaresomeofthebesttoolsforcommunicatingthequalityofyourproductstoprospects.Throughoutthesalesprocess,don’tbeafraidtorefertotheresultsofhappycustomersasyouaimtowinovernewbuyers.Theabilitytoseerealpeopleusingandbenefitingfromyourproductcanhaveamajorpositiveimpactonperceivedvalue. Makecustomerserviceapriority—Aboveallelse,allbuyerswhointeractwithyourbrandshouldwalkawayhavingapositiveexperience(eveniftheydecidenottobuyjustyet).Youcanhavethebestproductintheworld,butifacustomerhasanegativeexperienceworkingwithyourcompany,yourreputationcantakeamajorhit,whichcanlowerperceivedvalue.Withstrongservice,customerscanbeginbuildingmuch-neededtrustwithyourbrand,settingthemuptobeyournextsuccessstory. Whenyouunderstandwhatyourcustomersvalue,youarebetterequippedtonavigatethesale.Checkoutthisposttolearnmoreaboutthepsychologyofcustomerchoice.   OriginallypublishedFeb17,20206:45:00PM,updatedFebruary182020 Topics: HowPeopleMakeDecisions Don'tforgettosharethispost! RelatedArticles ExpandOffer ctaSalesPlanTemplate Getitnow Getitnow DownloadforLater