Elements of Value: What customers really want?
What customers really value in a product or service can be hard to pin down. So how can leadership teams / managers determine the best way to add more value to their company’s offerings. These value adding elements could vary from functional, emotional or products / services that are life changing for the customer or ones that have a social impact!
In the HBR article ‘The Elements of Value‘, by Eric Almquist, John Senior and Nicolas Bloch, these values can be extended to ‘Maslow’s hierarchy of needs’ by focusing on people as consumers.
The authors identify 30 elements of value that can be classified into 4 categories:
- Life Changing
- Social Impact
When optimally combined the elements increase customer loyalty & revenue.
These elements of value work best when a company’s leadership team recognize the ability of the elements to spark growth and hence make value a priority. The company should constantly strive to improve value in 3 key areas:
- New Product Development
- Customer Segmentation