For years now, business leaders have agreed that the price and value of a product can’t compare to the experience that a customer gets when interacting with a brand. If you want to generate loyal and dedicated clients, then you need to ensure that you’re giving them meaningful and memorable experiences. However, ignoring price and value entirely would be a foolish thing to do.
After all, the price that your customer pays for their product is going to have an impact on their experience. If someone buys an item for you for £400 and finds it elsewhere for £200 afterwards, this will turn the experience sour, as your customer will feel as though they’ve been tricked into spending more than the product was worth.
At the same time, the value of the product influences how your client feels about the investment overall. If they spent a lot for a product but it had a huge impact on their lives by solving various complex problems, then the purchase seems worth it. The transaction was beneficial to them, and they feel as though they’ve made a good choice.
So, how exactly do price and value impact customer experience?
Value vs Price in Customer Loyalty
The first thing to note is that though similar, price and value are not the same thing. The price of a product is essentially an arbitrary concept. Companies choose a price for an item based on a selection of factors, including the state of the economy, the competition in the marketplace, and various other elements. The price of an item can change, and often does over time.
The value of an item is more fundamental. It refers to the kind of return on investment and outcomes a customer can achieve with the product. For instance, someone could sell you an entire computer system for $5, but the value of the product you’re getting would generally be a lot more – despite what you paid.