Unlock the Power of Perceived Value for 2024 Success

Let’s talk about perceived value.

It’s something that might seem obvious at first, but many business owners find it difficult to actually get their customers to see and appreciate the value of what they offer. I mean, you created this awesome product or service to solve a real problem, right? So why aren’t people beating down your door, eager to hand over their cash? This is where understanding customer perceived value meaning comes in. Because, you know, people won’t fork over their hard-earned money unless they believe your product or service is worth more than the price you’re asking.

And let me tell ya, sometimes this disconnect comes down to how you’re presenting things, how you’re marketing your brilliance. Maybe you’re not effectively communicating why what you offer is so darn good. Maybe you need to tweak your marketing efforts to highlight all the ways you’re helping people save time, solve problems, and feel like a million bucks.

So, what is perceived value exactly?

Well, in a nutshell, it’s the customer’s evaluation of your product or service. But here’s the catch: It’s not just about its actual worth— it’s about how they perceive it, and what they expect to get from it. Customer perceived value in marketing management is a key concept for any business owner.

Think of it like this: You could be offering a high-quality product that’s actually the best on the market. But if your messaging is confusing, your website is clunky, and no one’s raving about your work, your customers might not get why they should choose you. So their consumer perceived value could be much lower than it deserves to be. This is why understanding customer perceived value in marketing is essential.

Where Does Perceived Value Come From?

Perceived value doesn’t appear magically. It’s the result of a well-crafted marketing journey that begins with really understanding your customers. You’ll learn a whole lot by following those podcast hosts that share how to connect deeply with customers.

Podcasts such as the Hustle Daily Show go into great detail on why it’s important to first do the marketing legwork before launching anything.

This starts by diving into research, understanding your target audience (aka your ideal customers). It involves figuring out their pain points, the issues they’re trying to solve. But it goes deeper, you’ve got to pinpoint their desired outcome—what they really want to achieve. Then, you’ve got to find a way to deliver that outcome smoothly and efficiently. This could include offering same-day delivery, crafting seamless online experiences, and building processes that create consistent, predictable outcomes.

But if people don’t feel like they’re getting what they bargained for, their perceived value goes down the drain. Just ask United Airlines who found themselves facing some serious PR trouble after removing a passenger from an overbooked flight in 2017. This customer perceived value debacle really highlighted the importance of understanding customer expectations and providing an excellent service experience.

A Budget-Friendly Guide to Boosting Customer Perceived Value

So now that you understand a little bit more about this elusive perceived value thing, how do you as a solopreneur actually go about boosting it—especially if you’re working with a limited budget? That’s exactly what we’re diving into, because knowing is half the battle. I’ve put together a bunch of actionable strategies you can put into play. We’ll also look at ways you can discover exactly what perceived value your customers have right now, so you can create targeted marketing campaigns that work like magic.

Understanding Your Customers’ “Job-To-Be-Done”

We all have “jobs-to-be-done,” whether we realize it or not. These “jobs” aren’t necessarily traditional jobs—they represent our needs, desires, and the things we’re trying to accomplish. It’s kinda like taking those elements of value Eric Almquist, John Senior, and Nicolas Bloch shared in their Harvard Business Review research back in 2016. For example, hiring a virtual assistant could be about saving time. It’s a time-saving tool. Another way to think about this time saving tool might include using automation for email follow ups.

Another tool you can incorporate to boost productivity is using video messaging. You could even incorporate that video messaging concept as a sales tactic. By using their best tips, you can elevate customer satisfaction surveys, and see exactly how effective video messaging is. All of this can lead to a higher customer perceived value.

Image credits to Intercom

Digging Deeper: Identifying The JTBD

How can a business owner go about really discovering those “jobs-to-be-done?” Think about that new coffee machine you bought, maybe it wasn’t a need, but rather a desire to up your coffee making game and impress guests (because it looked pretty). As humans, we want nice things, so don’t judge.

Ask yourself this question. How did that new machine change the experience for you?

• Did it save you time in the morning because you no longer had to wait in a drive-thru line?
• Was it more functional because you now could froth your milk to create pretty designs in your lattes?

The truth is that understanding this mindset shift can create explosive customer satisfaction. In order to uncover this for your business, think of a time you were trying to find a solution to a problem you had. What process did you go through?

For example, say you’re an SEO expert. A solopreneur struggling with attracting more leads through their website would definitely benefit from what you have to offer. The JTBD here is attracting those highly qualified leads because they either lack the expertise, have no idea how to track leads to increase profits or just don’t have the time.

Boosting Perceived Value Through Simple Tweaks

Solopreneurs have an opportunity to showcase their brilliance and increase perceived value without breaking the bank. That is because smaller companies are uniquely positioned to more easily make necessary adjustments, because let’s be real, you’ve got more freedom to adjust without going through multiple bureaucratic departments, such as sales, customer service, and product design teams. But it involves getting super specific about all the great things your product or service provides. You can increase the perceived value through excellent customer service. Here’s a little insider info—start with that research we just discussed and uncover what your customer is actually buying (functional or emotional).

Creating “Aha” Moments

These are moments where customers see the benefits and impact of using your product firsthand. A great example is in the 66th episode of Perceived Value podcast by Sarah Rachel Brown. This podcast about value talks about how a guest experienced one of these moments. They realized something new and interesting after attending an event with another artist and learning something that caused an internal shift.

Now this could happen because a solopreneur suddenly discovers your business helped them save time—time they could be spending on pursuing a passion, traveling, spending quality time with family, or just having some good ol’ relaxation. This is how to increase perceived value of your product.

“Hanging Dollar Bills on Pain Points”

A lot of the time we focus on what we’re giving the customer when we sell, instead of helping them understand what their costs will be if they DON’T get what you’re selling. That could mean identifying the costs of their pain points (what your business is fixing), both tangible and intangible. So put a dollar value on each pain point. Understanding how to calculate customer perceived value is a valuable tool for any business.

As an example, say a customer’s website isn’t showing up on Google and they’re missing out on getting ten leads each month as a result. What are they actually losing if they continue this way? Maybe each lead, on average, brings in a sale of $500. If they’re not showing up in Google search, they’re potentially losing $5000 per month, and maybe even losing out on valuable customers they could market to over the long term through an email marketing strategy.

A great example of using strategies to scale for business success could be when working with e-commerce sellers. Say their problem is getting product descriptions written for hundreds of products. By showing them how to calculate customer perceived value for their products, you can demonstrate the value of your services.

Create a Simple Comparison Table

Help customers visualize these costs with a simple comparison table:

This is a perfect way for customers to visually “see” the price they’re paying for not doing anything to solve their pain. If your solution (what you’re selling) is $2000/year—it doesn’t take a marketing expert to see how great that deal is. Understanding the perceived cost can make all the difference.

Unleashing the Power of Psychology for Budget-Minded Marketers

What’s awesome is that sometimes we can shift our customers’ perceptions without making major product or service changes. Research has actually proven this. There are all sorts of simple psychological tweaks that can skyrocket your customer perceived value definition, helping to set you apart in crowded markets, which as a solopreneur, let’s be real—your market is crowded no matter what it is these days. Here’s how to increase perceived value in the minds of your customers.

Tapping Into The Magic of Scarcity

You can add value to your services by creating a perception of exclusivity through various marketing campaigns. Even the mention of the phrase “customer experiences” could entice people to book you more because people feel they are part of something. A few simple ways you can incorporate this idea are to:

• Use time-sensitive language on offers. Think phrases like “limited time offer” and “only 5 spots left.” We saw this in action with the Playstation 5 launch. People were paying double the retail price because of how hard the product was to find.
• Another way is to offer special “limited-edition” packages. That new website redesign? Create lead generation packages based on exclusivity, with bonus VIP components.
• In-person events? This is a perfect opportunity to leverage scarcity. Think things like a special in-person workshop that you’ll only offer a few times a year.

Leveraging the Power of Social Proof

People tend to look at what others are doing to make decisions, because if everyone is raving about something it’s gotta be good, right? Understanding the value perceived by customer is crucial.

McKinsey is an excellent example of a company that leverages their social proof to charge more. Sure there might be other companies who offer consulting at a lower rate, but they haven’t reached the reputation and social proof to command what McKinsey does.

Simple, Effective Ways to Increase Social Proof

• Create an amazing testimonials page. Share what happy clients are saying about their “Aha.” moment when working with you.
• Actively ask for reviews and then share them everywhere. This includes on social media and even on print marketing collateral (if you use it).
• Guest post on high-authority blogs. Sharing your insights with a wider audience on popular blogs, like Influence Logic’s positions you as a credible source, driving brand visibility and recognition
• Share links to mentions or press coverage (even if it’s local.). Get to know your local influencers. By building your social circle you’ll naturally get more “word-of-mouth” press.

Highlighting Effort & Investment

Don’t be afraid to explain the time, energy, research, testing, and skill that go into what you’re creating. Because the truth is people pay for those years you’ve spent becoming an expert. Highlight the behind-the-scenes efforts on social media, giving customers a peek behind the curtain. Share photos or video of your creative process, highlight interesting research you’re using to create your product or service, and explain how your background and training influences your process. If relevant, talk about failures and obstacles you’ve overcome, highlighting your resilience and persistence, while building an emotional connection. By doing so, you can demonstrate the actual cost of your product or service and increase perceived value pricing examples.

Price Increases + Scarcity & Demand

Increasing your prices (in tandem with the strategies discussed above) will help increase perceived value. If a higher price point is a roadblock, maybe those costs aren’t clearly spelled out. Perhaps an increase would be perceived more favorably if presented as improving customer experiences. If your company has the ability to raise prices without a decrease in sales, there are even more ways you can help increase retention. Employees can really help to shape customer experiences to create a ripple effect, so focus on those initiatives to continue to scale growth.

Strategic Markdowns + Promoting “A Good Deal”

In the research we talked about a software package being marked up to $50 and then putting it “on sale” for 50% off. Sometimes customers get a “thrill” of a great deal even when, technically, it’s not. Strategic use of a sale like this works especially well for solopreneurs who might offer e-books or courses online. This is an example of perceived value pricing.

There was even research that studied painkillers and whether they were branded or not. You wouldn’t believe that branded painkillers actually were more effective than unbranded. This is a pretty compelling study when analyzing why some products are perceived as more valuable. Maybe creating branded materials or swag is a better approach than buying bulk white-label goods. This is an important aspect of customer perceived value definition and example.

Appealing to Emotion & Social Value

It’s true what Warren Buffett says: “Price is what you pay. Value is what you get.”

The examples discussed throughout really drive that message home. It’s not enough to create a technically brilliant product. To win in competitive markets, you have to look beyond purely functional benefits and tap into those deeper emotions. We humans are complex beings who crave meaning and connection. We yearn for that warm feeling of belonging, of having something others admire.

Solopreneurs with an established target market can look for ways to incorporate the character of the company as a value proposition to increase loyalty, while simultaneously generating sales.

Uncovering What’s Valuable to Your Customers

As a solopreneur you really have the advantage to go straight to the source and ask questions to find out exactly how to up your perceived value game.

Crafting Targeted Surveys & Questions

• Run short surveys on your website or email list: Simple questions are all it takes. Ask things like:
  • “What’s the one thing you value most about our product/service?”
  • “How has using our product made a difference in your life?”
  • “If you had to pay triple the current price for this service, what feature would make that price worth it to you? “
• Directly chat with your existing customers, because after all you should be making a consistent effort to build stronger customer relationships. Even something like a customer-centric company podcast that includes audience participation can help. Hop on quick calls and find out what those aha moments were when working with you. This goes a long way because there’s no question that 64% of customers choose a company whose values align with their own, based on the 2020 Edelman Trust Barometer report.
• Keep an eye on social media and reviews. What are people saying about your business? Look for instances of brand perceived value.
• Analyze reviews of your competitors. This gives insight into things customers are raving about or issues they wish would be fixed— giving you an inside edge when adjusting your approach.

Think back to episode 62 of the Perceived Value podcast and how Sarah’s chance encounter and conversation with Tom resulted in an “Aha.” moment. Because a chance conversation revealed that the non-profit Tom was affiliated with had a huge value mismatch. And you can actually check out the interview. A solopreneur doesn’t even need to book interviews because a casual chat might result in that game-changing tip. In fact, these tips work well even on a limited budget. So don’t underestimate casual encounters with ideal customers. Remember, marketing perceived value is about understanding and meeting your customers’ needs and desires.

Examples of Businesses Boosting Customer Perceived Value

These can be big companies, or even solopreneurs that started small, and were successful:

• Hubspot’s free scheduling tools. By taking the “pain” out of manually setting up meetings, it streamlined this part of doing business.
• Using personalization in sales by including something unique and memorable (for a potential customer), even something like a drawing for a big company might seem like a pain, but the perceived value outweighs any “cost” you have to invest. By adding that personal touch, you’re enhancing the product’s perceived value.
• Etsy – You could analyze thousands of products that range from inexpensive homemade goods to exclusive artisan items, even high priced vintage items, you’ll see an amazing example of perceived value based on a product. You’ll even see how the product presentation can influence this.

FAQs about perceived value

What is the meaning of perceived value?

It’s simply what customers believe a product or service is worth. This goes beyond the actual price. This involves looking at the functional and emotional benefits. And as you read earlier, psychology also has an influence, especially for luxury items. Think those designer handbags being increased by about 7%, and sold even in a global recession, according to a recent article published by The Wall Street Journal. It also takes into consideration things like ease of purchase, reputation, customer service, scarcity, and how their peers perceive the item, which ties into the concept of social selling. By paying attention to social trends and utilizing these concepts, sales can improve just based on building a wider social circle. It’s about understanding the customer’s perception of the product’s price.

What is an example of perceived value?

You see these all around you, especially if you pay attention to sales and how things are marketed to you. The next time you’re online or listening to a commercial, think about these common examples:

• Think of caviar. At one point you might be surprised to know it was free. Saloon owners gave this salty treat away in the late 1800s in the hope customers would then drink more beer. But it goes deeper than this. As the product’s price went up it became a “status symbol”. This shift in perception, from a free snack to a luxury item, illustrates the power of perceived value.
• Another example we talked about was the Playstation 5 launch where customers paid far more because the product was difficult to find. Those who scored a PS5 at retail value felt like they found “a deal” (even though that was its retail value.) because there was such a demand. Now you see something similar with “limited edition” product launches for beauty products, designer clothing lines, and even sneakers. These examples demonstrate that perceived value can influence what people are willing to pay.

What does a high perceived value mean?

This means that people are happy to spend more because they believe what you are offering is truly a “great deal.” They feel like you understand them and are providing a product or service that’s exactly what they’ve been searching for, making it even more likely that they will choose you. Another aspect is repeat customers. By increasing customer satisfaction you can improve sales growth because these customers will be more inclined to refer friends and family. High perceived value increases sales. If the customers believe your product is scarce and exclusive, even negative customer reviews have less of an impact because these satisfied customers perceive something amazing and difficult to come by.

How do you use perceived value in a sentence?

If you want to use the term properly, remember that sometimes perceived value might not make sense (based on logic alone) – so focus on using examples. Try sentences like this:

• The new line of handbags by Designer X has a high perceived value due to their limited availability, and high-profile endorsements from A-List celebrities, who shared these social media tips for increased sales. The brand has successfully cultivated an image of luxury and exclusivity, resulting in high perceived value.
• Even though Restaurant B serves pasta at twice the price of their competitors, their long waitlist creates a perception that the food is incredibly delicious. Although from the perspective of a traditional service experience, the strategy may backfire since wait times are directly impacted. Despite the higher price and longer wait, customers perceive the food to be of higher value.

Conclusion

Perceived value really is more art than science because after all you’re dealing with real-life humans. It boils down to figuring out what truly makes a difference in their lives and then letting them know exactly how you will be providing that.