Jan 4, 2022
B2B professionals often focus
exclusively on revenue gain and cost reduction as ways to provide
value to customers, overlooking an incredibly useful
value proposition: emotional value. In today’s episode of Aligned, Sean discusses
the importance of delivering value to customers to drive sales,
utilizing several frameworks to understand just how you can develop
and showcase value as an organization.
Value is nuanced.
- Value seems like a simple concept, but it’s
remarkably complex. Formulaically, value is simply benefits divided
- However, in application, it’s meeting the
customer's unmet needs, wants, and demands. These can be
divided into four categories: functional, monetary, social, or
An Inquiry Into the Nature and
Causes of the Wealth of Nature, author Adam Smith describes what is now
called the paradox of value: “[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.”
- Water is critical for life but cheap to
procure. Conversely, diamonds have little utility but possess a
tremendously high exchange value.
- The value triad states that there are three
ways we can offer value to a customer: revenue gain, cost
reduction, and emotional contribution.
The untapped benefits of providing emotional
- Revenue gain and cost reduction are more
tangible because they translate easily to money, while emotional
contribution is subjective.
- Emotional contribution, or emotional value,
uses the customer’s past experiences, brand perception, social
power, product packaging, and other aspects to draw unique but
definitive value to the individual rather than the
- We tend to market and sell on revenue gain and
cost reduction, making emotional value the most significant place
- For example, we could help purchasers gain
visible wins that make them appear more valuable to their
- 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.