What Is Value And How Do We Create It?

In Design by Alex - Leadfreak1 Comment


Here at Leadfreak we talk a lot about value, honestly, it’s probably the most used word in our vocabulary. We use value to transition prospects from one point to the next in the customer journey, whether they are at the start and know very little of you and your product or closer to the purchase point…without value they’re not going to cross the line.

The purpose of this blog is to try and answer the question… what is value, and give you some actions to take away that will help you create value of your own.

So, what is value?

To many in business it is economic…the price of your product or service. Sounds simple.

Believe me, this subject is anything but…

First off, the meaning of value is subjective and is wholly owned by the customer / prospect.

The price of a product is determined by how much the prospect is willing to pay.

Pricing of products is a science in itself.

We’ve all felt the rage when we feel like we’re being overcharged and the rush to get your hands on something we deem underpriced.

This is all centred around value; is the economic price less than or more than the perceived value of the product. Either result provokes an emotion and subsequent action…you buy or you don’t.

But let’s take a step away from the pricing of products, that’s not what we’re here to discuss.

“Just like beauty, value is in the eye of the beholder.”

What we are here to discuss is the value you deliver to your prospects along the customer journey.

Let’s summarise where we are…

The meaning of value is subjective and unique to all, and the power of perceived value is enough to be the driver of emotion, which in turn drives action…wait, how the hell are you supposed to create value as a business.

“For us, value is like quality. There is no scientific definition, no test or experiment that can be used to give us the answer to what it is, but we know it when we see it.”

There are a few questions we consider in determining value based assets for our clients. Here are some of them:

  • Where are they on the customer journey?
  • How informed is the prospect at that point in the journey?
  • What problem does your product or service solve when they become a customer?
  • What does it feel like to be your prospect at that time in the journey?

Where are they on the customer journey?

The journey of your prospect in purchasing your product doesn’t start the instant before they pick up the phone to buy. It starts a long way before that, not necessarily in time, but certainly in the emotive and mental position of your customer.

We call this the customer journey. It could look something like this…

  1. A prospect has symptoms of a problem but does not know what the problem is.
  2. The prospect knows what the problem is but does not know how to solve it
  3. The prospect knows the problem, knows how to solve it, and is currently making a decision on which solution is right for him.
  4. The prospect makes a purchase and becomes a customer.

Using these descriptions, you can see that each stage of the journey requires something different to move them to the next. This something is value.

A piece of the puzzle that takes them to the next level both on their journey to solve a problem, and also in their own level of expertise.

Question to ask yourself: What does the journey look like for my business?

How informed is the prospect at that point in the journey?

If we were looking to solve a problem on a car, and we were talking to a mechanic about the basics of what a car is…it would make no sense

Just as it would make no sense in speaking to our prospects about something they know far more about than we are giving them credit for. There is no value in this for the prospect and will only likely diminish the credibility of your business.

So, we consider who we are talking to and what level of expertise they already have. We use this to determine what would deliver value in relation to acquired knowledge of the prospect and communicate this in the correct form.

Question to ask yourself: Who is my customer?  Have I created a customer avatar?

What problem does your product or service solve? What are the benefits?

As an ongoing concern, your business must deliver value when prospects become customers.

If it doesn’t then there are worrying times ahead. Businesses that don’t provide value are quickly found out by the market, certainly now with the availability of information online.

So you must solve a problem.

And where there are also others that solve the same problem, there must be unique benefits that you provide that solves the problem better than the rest.

The goal for you as a business in delivering value along the customer journey is to lead prospects to purchase. Your product or service is the final conclusion. It is the logical next step in solving their problem.

Understanding your product and the benefits you solely offer to your customers is key.

It is always imperative that there is a focus on the end goal throughout otherwise you will be leading your prospects elsewhere, to another solution, to another business.

It is always imperative that there is a focus on the end goal throughout otherwise you will be leading your prospects elsewhere, to another solution, to another business.

We sometimes use the SCISSC model to determine the journey on behalf of our clients. (I’m sure we can come up with a better name for it).

S – Symptoms of problem
C – Consequences of not solving the problem
I – Insight
S – Self diagnosis
S – Short Term Relief
C – Core Offer

Throughout, we are focused on one problem and the solution of that problem until we lead them to core offer.

You can see the SCISSC model at work in one of our recently completed Funnel Workshops.

Question to ask yourself: Can I use SCISSC to determine a value path in my business?

What does it feel like to be your customer at that point in the journey?

In order to create value for prospects empathy is fundamental.

It’s fundamental because emotions drive actions. As much as some people like to consider themselves cold hard machines, emotions drive actions.

It is such a factor in the purchasing decision that large organisations have taken to implementing complex purchasing review processes to remove the impact emotions have on purchasing decisions.

(That’s fine, it’s expensive for them, and emotion still plays a part in these processes…if you deliver value along the journey, even when looking to convert from prospect to customer, you should be successful. It’s about delivering the right value to the right people, communicated through your value proposition.)

I digress…

Empathy is fundamental because it allows us to learn our customers emotions. As much as some people like to consider themselves cold hard machines, emotions drive actions.

So empathy is fundamental in understanding our prospects emotions.

Walk a mile in their shoes, learn about their perspective on the problems they have, and you’ll discover a whole lot more about how you can deliver value.

How to do this:
– Interviews
– Shadowing
– Surveys
– Experiencing the problem first hand
– Focus groups
– Phone calls

Basically, communicate with your existing customers. They’ve been on the journey.

If they’re pleased with the value you have provided then they’re more than likely to accept working with you.

Question to ask yourself: Do I know my customers?

To End…

Value is a hard thing to quantify, but the pursuit of value for your customers can only bring about positive results for your business as well as the discovery.

There’s value in giving value.

There’s value in giving value.

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About the Author

Alex - Leadfreak

Alex is head honcho here at Leadfreak and likes to spend time speaking with clients, solving problems, and getting results. When he's not immersed in the digital world on behalf of his clients, he has a keen interest in sports, world affairs and looking for his next opportunity.


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