The COVID-19 pandemic has shoved the world into a state of VUCA (volatility, uncertainty, complexity, and ambiguity) and economical slow-down. Many businesses are reacting to this disrupted status quo by pivoting their value proposition and switching to a value-based pricing model that puts the customer at the heart of the business.
But how do you assure your customers that the new value you’re offering is worth paying for?
Customer perception is essential
“If you calculate or quantify value, customers’ willingness and ability to pay will go up.”
In other words, if you can capture the tangible value of your offering, your customers will perceive its worth without focusing on the price. You will move up to the top of their priority list and they will make the necessary efforts to purchase from you.
It’s equally important to ensure that your potential buyers perceive your offering before they even know they need it. Getting the information to your customers early, before they decide to buy, is a fundamental marketing tactic that will put you at the center of your customers’ attention.
Deliver a greater perception of value
Creating something of tangible value is one thing. However, standing out on a saturated market is very different. To persuade buyers to purchase from you and not from the competition, you must challenge them to think differently about your offer.
To achieve this, you should consider providing customers with new features or add-ons that increase the value of your products or services. This will ultimately increase the utility of your company for your clients.
The competitive advantages of this practice are paramount in an increasingly digital environment that hosts a variety of new businesses that are focused on lowering their prices. It’s challenging to remain competitive under such circumstances, especially in the aftermath of the COVID-19 pandemic—unless you differentiate yourself from the competition through value-adds.
How to communicate your value-added benefits
Depending on the type of value-added benefits you’re offering, you can appeal to your consumers’ needs and help them envision the positive results they will experience by investing in your product or services. Below are just a few tips that can help you achieve that.
- Emphasize what makes you different from competing alternatives.
To help your customers put the added costs into perspective, you should prove that the added value is greater than the price. Sure, the competition might be cheaper, but it doesn’t mean it can provide the same value as you do. Help your buyers understand how your new features or services can improve their business by enabling them to use quantitative measures in order to satisfy their most urgent curiosities, including:
- How many resources will they save?
- Is the product or service easier to use than before?
- How will your value-adds help them improve their own product quality?
- Will they be able to increase their bottom line using your new offering?
To get your message across clearly, be specific and consider using case studies or demos that exceed the vague promises of other competitors.
- Add credibility to your promise—show what your value-adds can do.
Modern consumers are ad-savvy and more educated about the marketing landscape than previous generations. Especially in the B2B landscape, consumers are skeptical and wary of promises that may remain unfulfilled. Appealing to these customers requires effective sales communication and a demonstration of what the new feature or service adds to their experience.
Consider enabling your customers to sample the new value-add. If they can see and experience the improvements for themselves, they will be more inclined to invest further. Sampling is highly effective especially when there aren’t significant changes in a product, so as to avoid the hurdle of complex instructions or installations. For more complex value-adds, case studies are more appropriate, especially if they are performed by institutions with authority.
Last but not least, credibility is always increased by the testimonials of satisfied users. Using testimonials doesn’t only highlight the positive experiences of customers with your value-adds, but it also enables existing customers to positively advise potential clients.
- Relate to your buyer’s needs through support services.
Providing new value-adds that are relevant to your buyer’s needs is great. But it won’t get you too far if your buyers have to figure out the full capability of your value offering on their own.
Even if your value-add message is clear and comes accompanied by demos and samples, consider providing further support services to accommodate the adoption of your value-adds. After all, support is in and of itself a great value-added benefit.
You can provide your clients with free training, a 24-hour customer service hotline, or free technical guides.
Always remember that people don’t want to buy mere products or services—they want to buy solutions to their problems. If you want to understand their problems, you have to put yourself in their shoes and design the solution they need. It may come at an extra cost, but your customers won’t even feel it as long as your new value-adds improve the way they use your products or services.
If you communicate the benefits of your value-adds clearly, explain how they contrast the typical experience of using the same products or services, and put a strong emphasis on differentiation, you will move up to the top of your consumers’ priority list.
Consumer behavior is still changing due to the COVID-19 pandemic, but it’s already clear that buyers are less willing to splurge than ever before. As such, they will invest in what they truly value first. Provide the value they seek and let them know how to experience the full potential of your offering by educating them through accurate messages, demos, samples, and support services.