How Customers Perceive Value
Approximately 55% of customers' perception of a company is based on their experience after purchasing.
Understanding how customers perceive value is the cornerstone of successful businesses today. It's not just about pricing; it's about the holistic perception of what your offerings represent to your customers. In this article, we'll explore the multifaceted nature of customer value perception and the factors that influence this critical aspect of consumer behavior.
Source: Unsplash
Exploring the Spectrum of Perceived Value Dimensions
Dive deep into customer perceived value, and you unearth a spectrum of dimensions, each playing a pivotal role in the evaluation process.
Emotional Value: Beyond mere functionality, products or services often evoke emotions. Customers seek fulfillment, excitement, security, or joy in what they purchase.
Functional Value: Practicality and convenience play a significant role. How well does a product serve its purpose? How seamless is the service experience?
Social Value: The allure of certain brands and services ties closely to social perceptions. It's about how customers see themselves and their status while engaging with a particular offering.
Economic Value: More than just a price tag, it's about the perceived benefit customers receive relative to the cost incurred—a sense of getting more than what they pay for.
Unraveling the Influencing Factors on Customer Value Perception
What truly shapes customers' value perceptions? This question remains at the heart of business strategies. Antecedents of perceived value encompass not only the traditional factors like quality or price but also extend to brand perceptions, perceived risk, esthetics, and even the influence of social media.
"Customer perception is their reality." - Kate Zabriskie
In our digitally connected world, social media channels wield significant power over consumers' perceptions. Marketing activities in these realms—be it through blogs, discussion boards, or social networks—can substantially mold the perceived value of your offerings. Understanding these digital footprints is now integral to shaping customer value perceptions.
Moreover, as environmental consciousness rises, consumers increasingly consider the ecological value of products or services. Exploring these facets and understanding how they intertwine with core value dimensions is pivotal in catering to conscientious consumer preferences.
The Dynamics of Value Perception Over Time
Customer value isn’t static; it evolves over time. The dynamics between pre-purchase perceptions and post-purchase experiences shed light on the complexities of value evaluation. Research suggests that what customers desire before a purchase might differ from what they perceive after experiencing your product or service.
Approximately 55% of customers' perception of a company is based on their experience after purchasing.
Feedback loops play a significant role here. Previous experiences influence future perceptions, making the post-purchase phase an equally crucial aspect in the customer value continuum. Understanding this evolution can shape strategies aimed at enhancing the overall customer journey.
Consequences of Customer Value
The value customers perceive directly influences their actions. From loyalty to re-purchase intentions, customer value is a potent predictor of consumer behavior. But the relationship between perceived value and its outcomes is multi-layered.
While existing research has often assumed linear relationships between customer perceived value and loyalty, the reality might be more intricate. Exploring nonlinear causal relationships and the complexities within the value-loyalty link remains a fertile ground for further investigation.
Embracing Consumer Heterogeneity in Value Perception
One size does not fit all. Individual consumer values, deeply rooted in personal preferences and experiences, significantly shape perceived value. Acknowledging this heterogeneity within consumer preferences can offer deeper insights into purchase-related behaviors. Understanding these personal drivers can further refine how businesses cater to varied customer segments.
Expanding the Scope: Products, Services, and Beyond
Traditionally, customer perceived value was largely associated with tangible products. However, with the emergence of service industries and consumption systems, the landscape has evolved. Products and services are now interwoven entities, and understanding their combined impact on value perception is critical.
Market offerings combining product and service subsystems create intricate dependencies. A seamless interaction between product and service elements elevates the overall customer experience, affecting loyalty and word-of-mouth recommendations.
In conclusion, the study of customer perceived value transcends simplistic assessments. It’s a multi-dimensional, ever-evolving sphere shaped by numerous factors. As businesses, understanding, and leveraging these dynamics can become a pivotal differentiator in delivering unparalleled customer experiences.
Understanding your customers’ perceptions of value isn’t just a strategy; it’s a commitment to delivering excellence.
Interesting read this week 💡🌍
These Common Inclusive Online Marketing Mistakes Can Cost Your Brand Sales
The article discusses the rise of inclusive marketing in brands but highlights shortcomings in its execution. Despite efforts, consumers often feel excluded due to issues like burying Spanish-language options in website footers, accessibility problems (like using all caps), and a lack of prominently displayed brand values. To enhance inclusivity and consumer connection, the author suggests making language options more accessible, improving website accessibility, and prominently featuring brand values in the main navigation.
Better Buying Journeys: The Power of Emotional Connections in Conversational CX
The article emphasizes the need for emotional connections in customer relationships to foster loyalty in an era where customers readily switch brands. It highlights the importance of effective conversational CX technology, warning against impersonal experiences with inadequate tools. With AI-driven chatbots and voice tech increasingly shaping customer interactions, brands must adapt. These technologies streamline buying processes and personalize interactions, improving key metrics like satisfaction and response time. They allow for mass personalization by leveraging customer data, fostering unique connections—particularly with digitally savvy customers like Gen Z. To stay competitive, brands should invest in evolving conversational AI across channels for consistent, user-friendly customer journeys.
How To Capture More Revenue Per Customer: One Metric To Focus On
The article stresses the value of first-call resolution (FCR) in shaping customer perception and revenue growth. It offers strategies like agent training, efficient call routing, CRM systems, and self-service options to improve FCR. FCR stands as a measurable, revenue-boosting focus vital for enhancing customer experience and maintaining a competitive edge.
Previous weeks read:
CX Week #47: The Influence of Customer Service on Customer Loyalty
CX Week #46: Global Insights: Mapping the Landscape of Customer Experience (CX) Research
CX Week #45: Influential Papers That Shaped the Customer Experience (CX) Landscape
Please share your valuable thoughts on today’s newsletter in the comment section below.
Please share your feedback on the newsletter by clicking here.
Quick reminder: If you like our newsletter, please mark it as “not spam” and add it to your ‘primary’ inbox (in Gmail), so you don’t miss out on any future content.