So what to do? In our 5×5 Sharper Focus Business challenge, we prompt participants to think about one strategic question every day, like what is the value you deliver, that will ensure your client or customer is willing to pay more for what it is that you sell? Bain and company studied the elements of value, to take the guesswork out of it. They found there was a pyramid of value, much like Maslow’s Hierarchy of Needs. Customers want value in one of four areas:
- Functional value, like reducing effort, or avoiding hassle
- Emotional value, such as reducing anxiety or creating fun
- Life-changing value, as in giving hope, or providing motivation
- Social impact, or helping them to achieve a purpose greater than themselves
How can you keep your customers out of the basement of low expectations, and help them up the value pyramid today?