In the world of marketing, things have changed a lot. Now, there’s a strategy called value marketing that’s super important.
It’s all about making sure your products or services help and benefit your customers.
At VH-Info, a link-building agency for SaaS companies, we understand how vital this is.
In our guide, we’ll explain what value marketing means in simple terms, like how products can be useful or save money.
We’ll also show real examples of how it works. Plus, we’ll talk about why understanding what customers value is so crucial for marketing.
By the end, you’ll see why value marketing is key for keeping customers happy and growing a successful SaaS business.
What is Value in Marketing?
Value in marketing refers to the benefits a customer gains from using a company’s products or services. It is what the customer believes they are getting in return for the money and time they spend on that product or service. Creating value means developing offerings that provide tangible benefits like solving problems, making life easier, improving health, and saving money or time for customers. Focusing on the value of a product when marketing it to customers can make them view it as a solution to their problems, and they may be more likely to engage with the brand. Communicating that value, including personal benefits, is key for companies to attract customers who will be satisfied with their purchase.
Different Types of Value Marketing
People think different things are valuable. Companies also have different things they can offer to make customers happy, like numbers or qualities. When businesses look at how to sell their stuff well, they think about four main types of values that customers care about.
Functional Value
This is about how good a product is at solving a specific problem for the customer. It’s about how helpful the company’s solution is in numbers or practical ways. When a company talks about functional stuff, they might focus on what their product does and how it can solve a problem for someone.
Functional value in marketing means highlighting how well the product works or how useful it is. For example, a car company might advertise how their car helps people reduce pollution. They might talk about the car’s fuel efficiency compared to others or show how using a hybrid engine can make less pollution.
Economic Value
Economic value is about how much a customer thinks a product is worth compared to its price. It checks how much value the product gives compared to how much money it costs. It’s mostly about getting good value for the money spent, including the monetary value. Economic value doesn’t just mean something is cheaper than others. Its value depends on the price and different things that customers find important.
For instance, a company sells electronics at a higher price than other brands, but it’s known for making really good, long-lasting products. Even though it costs more, customers might think it’s a better deal because of the brand’s reputation for service quality. People see this value and might decide to spend more at first for a product that works better and lasts longer, instead of buying a cheaper one that needs replacing more often.
Social Value
Social value means how much a product helps customers connect with others. It’s about the good feelings and benefits that come from feeling linked to other people. Social value is partly about emotions and feelings.
For instance, a company has a tool that helps people connect online through social media. They talk about how it helps coworkers stay in touch, even if they’re far away. This can make people feel better and less alone. It also helps businesses by making work easier. When a company promotes social values, it can make more people know about the brand and build brand awareness. When people see a brand as social, they might tell others about it, helping the brand grow naturally.
Psychological Value
This value is about how a product makes people feel. Psychological value means customers feel good and can show who they are if they use the product. To advertise this value well, a company needs to really know what customers want, like, and dream about. By doing this, the company can make its brand give customers a personal and emotional lift. This can be a good way to stand out from other similar companies.
Encouraging people to buy based on their personal feelings is important in marketing psychological value. When people feel a personal connection to a product, they often stick with that brand, inspiring greater brand loyalty. Businesses spend a lot of time and money trying to understand their customers to create this bond. They do research to understand why people think in certain ways, how they spend money, and why they react to certain things. Then, they use this info to sell their products better.
What are the Benefits of Value Marketing?
The benefits of Value Marketing are as follows:
- Building Customer Loyalty: When companies focus on showing the value of their products or services, they build trust and excitement among customers. By emphasizing experiences, knowledge, and solutions rather than just selling, they create a strong bond with customers.
- Retaining Customers: Value-centered marketing makes customers feel important and understood. When they feel valued and satisfied, they are more likely to stick with a company rather than switching to competitors. This approach differentiates the company and keeps customers engaged.
- Creating Brand Advocates: Customers appreciate brands that offer a sense of community. By showcasing value and providing a positive experience, companies can turn customers into advocates. These satisfied customers become eager to share their positive experiences, attracting new customers and aiding in organic growth of the brand.
In essence, value marketing helps in forming strong and lasting relationships with customers, ensuring their loyalty, and turning them into active supporters of the brand.
Example of Value in Marketing
Imagine you walk into a coffee shop and are greeted by a friendly barista who not only takes your order but also asks about your day. As you wait for your drink, you notice that the coffee shop has a bulletin board featuring local events and community initiatives. When your drink is ready, the barista hands it to you with a smile and says, “Enjoy your day!”
In this scenario, the coffee shop is practicing value marketing. They go beyond just selling coffee by creating an experience that makes you feel valued and important. By taking an interest in your day and providing a sense of community with their bulletin board, they are connecting with you on a personal level and making you feel like you’re part of a community. This creates a positive emotional response and enhances your overall customer experience.
The barista’s friendly demeanor and the personalized interaction leave a lasting impression. You not only enjoy your coffee but also feel appreciated as a customer. The coffee shop has successfully demonstrated value by making you feel important and understood.
This example illustrates how value-centered marketing goes beyond the product or service itself. It focuses on building relationships, fostering loyalty, and creating brand advocates. By providing an exceptional experience, which may be the most important factor, and showing genuine care for customers, businesses can stand out from their competitors and build a strong customer base. Value in marketing is all about understanding the needs and desires of customers and going the extra mile to fulfill them.
What is Customer Value?
Customer value refers to how much a product or service means to a customer. It’s like weighing everything about it—the cost, the quality, and how useful it is for that specific person. Essentially, it’s about understanding what a customer gets and feels from using a product or service.
What is Customer Value in Marketing?
Customer value in marketing refers to the satisfaction and benefits customers feel when they use a product or service. It’s not just about the price; it includes things like time saved or how useful the product is. This perceived benefit can be seen in different ways, like when customers are happy, keep coming back, or tell others about the product. Understanding what customers find valuable helps companies decide what to offer to make customers happy and make more profit by providing a quality product.
For instance, a company might offer free shipping for orders over a certain amount to make customers feel they’re getting a good deal, leading to satisfaction and loyalty.
FAQ’s:
How is Value defined in Marketing?
Value in marketing is about the benefits, worth or usefulness that customers perceive in a product or service, relative to its cost. It refers to the satisfaction customers get from what they receive, measured by the tangible and intangible advantages provided by that offering. Perceived value represents the quality, enjoyment or solutions the customer gains in relation to the price paid.
How can a company measure the value they provide to their customers?
Companies can measure the value they provide through customer surveys and feedback. This helps assess how much the product or service has improved their life, solved problems or added convenience, including product quality. Metrics like customer satisfaction scores, repeat purchase rates, retention levels, willingness to recommend, and customer feedback also help quantify the worth customers feel they obtain. Tracking these indicators over time shows if delivered value rises as new offerings are developed.
What are some examples of companies delivering value to their customers?
Amazon provides value through ultra-fast delivery and convenience of finding almost anything you need in one place. Uber Eats adds value by enabling quick meal orders from a huge range of restaurants. Netflix delivers entertainment value through recommendations matched to personal tastes and easy access to shows and movies. Companies create value by knowing their customers deeply, providing excellent service and tailoring offerings to meet their evolving needs.
How can a company communicate their value proposition effectively?
Companies can communicate value propositions clearly by focusing messaging on the specific customer needs and frustrations their offerings address. Using customer language and centering statements around the tangible benefits and problem-solving that customers gain builds connection. Companies also bring value propositions to life through stories, reviews, and imagery showing how potential customers utilize and find meaningful worth in everyday interactions with their products or services, ultimately leading to customer success.
Conclusion
In conclusion, value in marketing is a multi-faceted concept that encompasses functional, economic, social, and psychological aspects.
Understanding and delivering value to customers is crucial for the success of any marketing strategy. It not only helps in attracting and retaining customers but also enhances brand reputation and customer loyalty.
By focusing on different types of customer value such as functional, monetary, social, and psychological, businesses can create a unique and compelling value proposition.
Remember, value is not just about offering the lowest price or the best features; it’s about meeting the needs and desires of customers in a meaningful way.
So, strive to identify and deliver value to your customers, and watch your business thrive.