Perceived value is the amount a customer is willing to pay for a product or service. You might be willing to pay CHF 50 for a product and then find out it actually costs only CHF 30. This is a direct result of perceived value.
It is possible to leverage the perception of value to increase conversions and sales through, among other things, digital marketing. If the value perceived by a customer is greater than the price of a product or service, there is a good chance that they will buy. Let’s take a look at the tools you can use to increase the perceived value of your products and services and thus increase your sales.
Why is this important?
Would you rather lower your price or increase the perceived value? Increase the value of course! That’s essentially what marketing and advertising are all about. It’s also why we can benefit from a marketing budget. It’s about showing our audience why our products and services are worth considering and therefore buying.
The job of is to shape and increase the value of the goods or services you offer. The higher the value customers assign to your goods or services, the more they are willing to pay and the more money you will make.
Features Vs Benefits
There’s a reason this concept gets bandied about by marketing professionals. Sure, what your product or service does is extremely important. Your company has spent time, money, and energy developing this product.
However, it’s much more beneficial to explain to customers why the product will benefit them than to deliver its features.
Remember that your customers are probably thinking “What’s in it for me?” and answer that question through your marketing.
Sell the outcome, not just the product.
Implementation
Don’t make empty promises or undercut your product just to increase the value of your product. Even if you already do, make sure you deliver on your promises about how your product will benefit the customer. In a world where reviews and testimonials are thrown around like six guns, customers are expected to share positive emotions about the product or service you provided them. Everyone wins when you highlight the benefits of your product, the customer loves the result and is sure to recommend your company.
Increase the price
This can be disconcerting for those who are not used to it
But it has been proven! Consumers sometimes pay more for certain items that are perceived as luxury items.
Participants in the study were told they would be tasting two different wines. One priced at $5 and one priced at $45. However, they tasted the exact same wine. The researchers found that when the participants thought they were tasting the more expensive wine, the part of the brain that feels pleasure became more active.
Create social proof
Humans copy the actions of others in certain situations. This can be used to your advantage. When customers see other people interacting with your ads, liking, commenting, etc. they are more likely to join the conversation. By making your ads more engaging and touching them with benefits you will get users to join the conversation, visit your business and purchase your products and services.
When people see others interacting, they view the brand as having higher value than brands with little or no interaction.
Fear of missing out
Fear of missing out can lead people to make decisions they might not normally make. No matter the cost, people are more likely to buy the last product available or take advantage of a deal that’s about to expire. Even if you’re not selling a physical product, run a limited-time offer and watch those sales increase. Communicating the shortage creates a sense of urgency that customers don’t want to miss out on.
As we saw in the wine example, perceived value and actual value go hand in hand. Increasing the value of your products or services will lead to an increase in their actual prices and thus increase your revenue. Increasing the perceived value around your business will lead to more conversions and sales, and both you and your customers will come out on top.
Contact us for a free initial interview during which we can advise you on your current project and give you some ideas for developing your digital strategy.
In fact, you don’t need to spend months on this task and write 100 pages, a few days are usually enough to connect your SMART objectives to the different actions you can take on the different categories of “Touchpoints”. Despite this relative simplicity, many companies still haven’t put their digital strategy on the work plan.
Recommendation for developing a digital strategy
Start by looking at your marketing and make sure you have clearly defined your identity. Finally, if you have segmented your market, you have certainly determined your targets and finally, chosen a positioning for these targets.
Then, you will have decided what actions you are going to take on the different points of contact: Web, Mobile, Email, Search Engines and Social Networks.
Effective marketing requires an industry email list, which gives companies tailored access to prospective clients. Companies may improve industry email list engagement and boost conversion rates by using handpicked connections. By concentrating efforts, time and resources are saved and the intended target is reached with communications. Purchasing a high-quality email list contributes to the success of your organization overall by strengthening customer interactions and increasing brand visibility.
You will also have chosen specific types of content to communicate with your targets at different stages of the conversion funnel. Finally, you will have decided, according to, on the distribution of your budgets and actions on the 3 channels. To top it all off, you may have considered using a CRM, taking care to choose it for its integration and marketing automation capabilities.
10 reasons why you may need a digital marketing strategy?
1. You went in all directions
We see that companies that don’t have a digital marketing strategy (and many don’t) don’t have clear strategic goals for what they want to achieve from digital marketing and how to win new customers and/or build closer relationships with existing ones. If you don’t have goals, you’re probably not putting enough resources into your online actions and you’re certainly not evaluating, through analytics, whether you’re able to achieve those goals.
2. You don’t understand your online market
The demand for your products & services may be completely underestimated if you haven’t done any research on it. Maybe you don’t even understand your digital marketplaces? The dynamics are completely different from traditional channels with very different profiles, uses, competitors. The options for communication actions are also very different.
3. Existing competitors and startups will gain market share
If you don’t dedicate enough resources to digital marketing or if you use an ad hoc approach without a clearly defined strategy, your competitors will come to your digital table! Competition today does not necessarily come from its sector of activity.
4. Your value proposition is not powerful enough
A clearly defined customer value proposition will help differentiate your online service by encouraging current and new customers to engage quickly and remain loyal.
5. You don’t know your online customers well enough
Digital media is perfectly measurable with an accuracy that is unmatched by traditional media. But Google Analytics and others will only give you visit volumes, not visitor sentiment and what they think. You will need to use other tools to retroactively analyze website users to identify your weak points and fix them. A modern CRM and automation tools will help you with this.
6. You are not integrated
Beware of disintegration! Digital marketing activities are too often conducted in disorder and in silos, with digital marketing specialists sitting or confused with IT germany phone number library specialists, an agency for one activity, an isolated person for another, etc. It is often easier to separate activities in this way, but of course, it is much less effective. Everyone agrees that it is easier to manage digital media when they are integrated into the management of traditional media and customer management.
7. There are not enough resources and budget given the importance of digital
Your resources are insufficient for planning and executing digital marketing. In addition, you lack the right skills with the required specialties in the different e-marketing specialties. This makes it difficult to implement your digital marketing actions in the face of fierce competition.
8. You waste time and money with overlapping activities
Even with sufficient allocation of resources, time can be wasted. The bigger the company grows, the more it affects the organization. In fact, several people have aero leads taken charge of parts of marketing and communication using different tools. A lack of coordination arises from this organization and makes digital marketing actions ineffective with the risk of duplication and lack of coherence.
9. You are not agile enough and have difficulty catching up
If you pay attention to the big brands in the digital world like Amazon, iBM, Google, Facebook, etc. they are all very dynamic, that is to say they are constantly experimenting with new approaches to engage and retain their online audience. This is one of the great advantages of digital to allow you to test solutions on market segments to measure and analyze them and finally generalize them to your customers if the test is conclusive.
10. You don’t do optimization
Every business with a website has traffic metrics in place, but many managers fail to ensure that their teams do and/or have the time or skills to review, analyse and act on these metrics. Once you have a solid foundation in your strategy, then you have ample scope to progress on continuous improvement in key areas such as SEO, website user experience, email and social media marketing.
So here are 10 major problems that can be avoided with a well-thought-out strategy. Do you also have the opportunity to progress with your digital marketing strategy?
