sychology-backed Strategies to Increase Customer Value Perceived
A experiment was done for wine tasters a while back. Two bottles of wine were given to the volunteers and they were asked to describe each of them. Bottle A was $5 and the other bottle was $45.
Both bottles contained the exact same wine, but most volunteers said the expensive wine tasted better than that of the cheaper bottle.
This is perception of value in action! How does this all work? And how can you increase the perceived value of your product/service? Continue reading to learn more.
What is the customer’s perceived value in marketing?
A customer’s perception of the benefits and costs of a product or service is what they call perceived value. It includes their expectations and satisfaction, as well as how it compares with competitors and the quality of the product.
Studies show that our brains are wired to make decisions based on emotional triggers, and this includes purchasing decisions. Instead of considering the manufacturing cost when deciding whether a product/service is worth its price, they use subjective judgments and emotions.
Customer perceived value is a powerful tool
Your business can benefit from the power of perception in many ways.
Higher prices
Businesses can charge higher prices or sell more products as the perceived value of a product increases. This results in increased revenue. Apple launched a polishing cloth with a $19 price tag.
This pricing was referred to by the New York Times as ” bold even Apple’s standards, which is a company whose legions are conditioned to high stomach prices.” In October 2021, Apple’s most-requested item was the polishing cloth.
Crazy right? That’s the power of perception.
Greater customer satisfaction
Value is often a factor in customer satisfaction. Customers will feel more satisfied if they have a positive perception of your products, and this can help them to justify their investment. You must deliver this value to your customers, but you don’t want to disappoint them in the long-term.
Improve customer loyalty
You can increase your chances of building lasting relationships with your customers by convincing them that your products are more valuable than their competitors. PC Magazine offers its opinion on Apple’s polishing cloth.
The Apple Polishing Cloth demonstrates the power and brand of the company. It doesn’t matter that Apple’s official page about how to clean your device (Opens in new window) only suggests that you use a “clean damp, lint free cloth”. As long as Apple makes a product that meets the criteria, people will buy it.
To increase demand
Positive impressions of your product will make people more likely to spread the word and convert, which in turn leads to greater demand.
Simple ways to increase the perceived value of a product
We’ve seen that perception can benefit businesses. How can we create this perception? How can you increase the perceived value of your small-business?
1. Create scarcity
If you state that a product is not available, it means that it is running out of stock because it is popular or it’s rare because it is valuable.
This scarcity copy is a popular way for ecommerce sites induce FOMO and increase conversions.
- 20% Discount Ends in Two Days
- Out of stock / Only X left
- Limit of x per buyer
- For 15 minutes, your item will be kept in a basket
2. Price increase
As you can see in the wine-tasting experiment and as other studies have shown, consumers tend to associate higher prices with greater value. Robert Cialdini, a social psychologist, explains that customers often substitute quality for price, especially when they are unfamiliar with the product.
Be practical. You don’t want to charge $19 per cleaning cloth. You can experiment with your product pricing strategy to find the sweet spot.
3. Show markdowns
A way to increase your customer’s perceived value is to show customers that your product is more valuable than its price. You could, for example:
- If you are running a sale, or a bundle discount, please provide the original price
- Indicate other savings or gains that the customer can make, such as time or resources and how they are valued.
The New York Times illustrates this by showing below that you don’t pay for a dollar worth of news per week but rather $4.25 worth news for $1.
These deals are commonplace for many consumers. Be honest with your customers and avoid exaggerating. Otherwise, you might give the impression that you’re a scammer.
4. Use charm pricing
Notice how nearly all prices end in “99”. If a product costs $5, it will be displayed at $4.99 instead of $5 or $999 instead of $1000.
This tactic pricing strategy is known as “charm pricing”. According to the Journal of Consumer Research, and this MIT Study, consumers perceive “odd price” to be lower than they actually are.
This was tested by the online sales platform Gumroad and it significantly increased their conversion rates. These are the results:
5. Use high-quality visuals
Online shoppers often have to deal with the fact that they cannot touch or feel the product in person to verify its authenticity. You need high-quality images that highlight the product’s best features and benefits. Bellroy has a slider bar on its website that allows you to see how different wallet sizes are based on the number of credit cards you have.
6. Display testimonials and reviews from customers
Potential customers want to know what customers have to say about a product or service. 93% people are influenced and influenced by online reviews. Online product reviews are trusted 12x as much than the manufacturer’s description. It is important to include reviews and testimonials from customers on your website as well as social media channels.
They will not only increase your perceived value but also reduce anxiety among potential customers.
7. Offer top-notch customer support…
Businesses that deliver memorable customer experiences not only get more word-of-mouth referrals and excellent internet evaluations and higher customer retention rates but customers will also pay more for better service and support.
Personal support increases the perceived value of your products or services.
These are some customer service ideas that will increase product value.
- Your customers will appreciate a premium community
- You can arrange live meetings for customers on a regular basis
- Meetings with clients and one-on-one consultations
8. …and seamless user experience
Customer experience is all about providing a positive experience for customers when they interact with your digital assets. Optimize your digital assets.
- Fast page speed
- Enjoy a quality experience without annoying popups
- Mobile functionality
- Accessibility
- Attractive design
- There are many payment options
- Check out quickly
9. Influencers to leverage
It can make a huge difference in the perception of your value by getting someone you trust to endorse your product. Celebrities do not need to endorse your product or service. Find industry leaders in your niche, and follow our tips for outreach and influencer collaboration.
10. Your branding is important.
It is vital to establish a brand in customers’ minds. Your clients might not see the true value of your products or services, regardless of how great they are. If your branding and design are poor, it could lead to them overlooking your actual value.
You can use branding to your advantage by creating a consistent brand identity across all your digital and physical assets. This applies to your website, social media channels, emails and packaging.
Daily Harvest is an online company that uses professional branding and beautiful product graphics to sell healthy smoothies.
11. Offer samples and trials for free
Nobody has a better understanding of your product than you do, and not all will be able to read its benefits or features.
Instead of telling prospects about how great your service is, let them experience it for themselves. Offer free samples and trials. The mere offering of it can increase its perceived value, regardless of whether they actually use it.
Many SaaS providers offer free trials and plans for clients as part of their client acquisition strategy. This helps to increase the perceived value of their products.
12. Social responsibility is important
Social responsibility is a way to make your products and brands more appealing to customers.
According to studies, customers will pay more for products made by socially responsible businesses. Nature has made us a cooperative species. It is a good feeling to do kindness for others. But, it’s even better to earn something.
You might consider donating a portion to a cause that you are passionate about, or to giving back to the communities in which you live.
These firms are loved by people and increase their worth.
13. Find out what is important to your audience
Your product may be the most popular on the market but it won’t matter if it doesn’t resonate with customers. It is important to understand your customers’ emotional needs, what they want and how to avoid them.
A deep understanding of your target audience and buyer personas is essential to create a value proposition.
Take a bow
This article should have one thing in common: customer perception is key to business success. Your customers are the engine of your business and they deserve to feel that their money and time are being well spent. This will help you increase perceived value for your products and services.
- Scarcity can be created
- Price increase
- Show markdowns
- Use charm pricing
- Use high-quality visuals
- Display testimonials and reviews from customers
- Offer top-notch customer support…
- …and seamless user experience
- Influencers to leverage
- Your branding is important.
- Offer samples and trials for free
- Social responsibility is important
- Find out what is important to your audience
About the author
Bhujal Patel, a marketer and a SEO, is passionate about helping businesses increase their revenue and profits through custom strategies. He is a Toronto resident and blogs about business ideas and organic growth scaling at mydigitalkube.com.
The post Customer Perceived Value Increases: 13 Psychology-Based Strategies was first published on WordStream.