Apr 6, 2021
Though we often focus immediately on revenue gain and cost
reduction, we tend to overlook emotional value
despite its importance to our clients. It’s a little-used lever
that can help them improve their standing with their bosses and
that can help us close deals.
FitzMartin is a sales-first company that is driven by those
things, and we want to pursue those things, and we know that you
Nuance of value
- Value seems like a simple concept, but there’s some nuance to
it as well. Formulaically, it’s value divided by cost. When a
customer is looking at your offering, he looks at the benefit and
cost of your offering compared to others.
- The basic underlying concept is meeting needs. Sometimes those
needs are wants and sometimes they are demands, but the customer is
always seeking value as they look to solve those needs and
- In marketing terms, value could also be called customer
perceived value. Marketers should look at what consumers need, what
they want, and even what they demand.
- Value can further be broken into four segments: functional,
monetary, social, and psychological.
- Adam Smith, in
An Inquiry Into the Nature and Causes of the Wealth of Nature,
offers this interesting paradox: “...[T]he things that have the
greatest value in use frequently have little or no value in
exchange. On the contrary, those which have the greatest value in
exchange frequently have little or no value in use. Nothing is more
useful than water, but it can be purchased for scarcely anything. A
diamond, on the contrary, has scarcely any use-value, but a great,
very great quantity of other goods may frequently be had in
exchange for it.” (This was obviously written before we could
buy $5 bottles of water.)
- The value triad states that there are three ways we can offer
value to a customer: revenue gain, cost reduction, and emotional
- Revenue gain and cost reduction are more tangible because they
translate easily to money, where emotional contribution is a
- Emotional contribution, or emotional value, could translate to
the customer’s past experience, perception of your brand, social
power, product packaging, and countless other options.
- We tend to market and sell on revenue gain and cost reduction,
making emotional value the greatest lever you have to
- If, for example, we could help purchasers get visible wins that
help them move up in their bosses’ esteem, and to move up in value
in their companies, that’s an incredible emotional
- If you’re late in a deal and the prospect asks you to give
more, don’t do it by reducing the price. Instead, consider reducing
the risk for the buyer.
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