Perceived value is a customer’s view or appraisal of a product or service based on their perception of its costs and benefits. This includes whether it meets (or will meet) their needs and expectations, how it compares to competitors, and its quality.
Studies have shown that our brain is wired to make choices based on emotional triggers—and that includes purchasing decisions. So, rather than considering manufacturing costs when assessing whether a product or service is worth the price, they rely on subjective judgments and emotions.
The power of customer perceived value
Leveraging the power of perception can help your business in several ways, including:
Greater customer satisfaction – Customer satisfaction is usually a function of value. When your customers perceive your products well, they’re more apt to feel their needs are being met—especially to validate their investment. Remember that you need to deliver on this value, however, so you aren’t setting them up to be disappointed in the long run.
Improve customer loyalty –
By convincing purchasers that your items are more valuable than competitors, you improve your chances of developing lasting connections with them. For example, here is what PC Mag has to say about Apple’s polishing cloth.
The Apple Polishing Cloth fully demonstrates the power of the company’s branding—it doesn’t even matter that Apple’s official page on how to clean your device(Opens in a new window) suggests only that you use a “clean, damp, lint-free cloth.” So long as Apple sells a product that fits the definition, fans will buy it.
Easy ways to increase a product’s perceived value.
Easy ways to increase a product’s perceived value
Increase the price –
As you saw in the wine-tasting experiment, and as other studies show, consumers often associate a higher price with more value. Social psychologist Robert Cialdini explains that customers tend to substitute price for quality, especially when they’re unfamiliar with a product.
Just stay practical about it—you do not want to charge $19 for a cleaning cloth like Apple. Experiment with your product pricing strategy and find that sweet spot.
Show markdowns –
Another technique to increase customer perceived value is to show that your product is worth more than the given price. For example, you could:
- Provide the original price if you’re running a sale or bundle discount
- Indicate other savings or gains the customer can get, such as time and resources and what those are valued at.
Many consumers are used to seeing deals like this on online shopping sites. Just make sure you stay honest and don’t overexaggerate, otherwise you could give off the impression of being a sleazy infomercial if you are not cautious.
Offer top-notch customer support… –
Not only do businesses that provide memorable client experiences get word-of-mouth recommendations, excellent internet evaluations, and greater customer retention rates, but also, customers are willing to pay more for a better experience and support.
Personalized support raises the perceived value of your products and services.
Here are some customer support ideas to improve product value:
- Provide a premium community for your customers
- Offer a periodic live meetings with customers
- One-on-one consultations and meetings with clients