To understand what 'value' is to the customer, we must first understand 2 other things, want and needs.
What are needs – something thought to be a necessity and essential required in life. Like water, air, home, job and money.
What are wants – something unnecessary but desired that increases quality of living. Like a luxury watch, sports car, huge homes.
The two terms, "need" and "want" are about as close as "value", but it's not.
What drives a sale is value.
So, what is value?
A lot of people makes a big fuss about value. It's not. Value is what we perceive it is to be. Whatever that may be.
Which do we value more, drinkable tap water or cheaper tap water?
In dry areas, it doesn't matter if it's drinkable or filtered, as long as it is water.
In wet areas, cheaper water may be the option.
Value is different to a segment group of people. To rich people, owning a sportscar elevates their social status, not 100% of them enjoy track day (bring cars to track to race). Which was the original point of owning one.
To health cautious people, less sugar and calorie.
To bodybuilders, getting more protein.
To geeks, being trendsetters.
When you create value, you create a willingness to pay (WTP).
It's an exchange between value and money.
Naturally, the higher the value, the higher the pay.
5 Star fine dining restaurants charge a premium for their food. Perfect for people who values, cleanliness, experience and good food.
The best way to understand your customer value is to ask them.
Most of the time they'll answer 'faster horse'.
If I had asked people what they wanted, they would have said faster horses.Henry Ford
It's your job to understand their answers.
The most common question is "Why do you buy from me?".
Don't be satisfied with a one-liner. Wait for them to digest and inhale the question. Let them take a beating. Dig deeper into the question.
Remember, never settle for "because you're the best".