Perceived value

As a sales coach, understanding and communicating perceived value is essential to success in the business world. Perceived value is a customer's subjective assessment of the benefits and utility they will get from a product or service in relation to its price.

In other words, it is the customer's perception of the relationship between what they get and what they pay. In this article, we will explore what perceived value is, how it influences buying decisions and how we can effectively communicate it to drive sales.

What is perceived value?

Perceived value is not simply the price of a product or service, but the relationship between the benefit the customer will get and the sacrifice he or she must make to acquire it.

This subjective value is a combination of tangible and intangible factors, such as quality, performance, convenience, customer experience, brand reputation and after-sales service. It is important to keep in mind that perceived value is different for each customer, as it is influenced by their needs, preferences, previous experiences and individual context.

How does perceived value influence sales?

Perceived value plays a key role in customers' purchasing decisions. When a customer perceives that the value they will receive exceeds the price they will pay, they are more likely to make the purchase decision. On the other hand, if the customer perceives that the value is insufficient or does not justify the price, they are likely to look for alternatives or postpone the purchase. Therefore, it is crucial for marketers to understand and effectively communicate the perceived value of their products or services to positively influence customer decision making.

Perceived value is also a key factor in differentiating from the competition. If a customer perceives that a product or service offers unique and superior value compared to available alternatives, they are more likely to choose that option. By focusing on creating and communicating differentiated perceived value, marketers can stand out from the competition and capture customers' attention. This gives them a competitive advantage and increases the chances of closing successful sales.

How to communicate perceived value?

Understand the customer's needs: Before communicating perceived value, it is critical to understand the customer's needs and wants. Conduct market research, surveys, interviews or data analysis to obtain information about your target customers. The better you understand your target audience, the more effectively you can communicate the value your product or service offers to meet their specific needs.

Highlight key benefits: Focus on communicating the key benefits your product or service provides to the customer. Instead of focusing solely on features and technical specifications, highlight how those attributes translate into tangible benefits for the customer. For example, if you are selling a car, instead of just talking about its engine and acceleration capabilities, highlight how those aspects provide an exciting and safe driving experience.

Use examples and success stories: Examples and succe