When customers receive the best value for the amount of money that they paid for, they will feel that they got their money’s worth or good value for their money.
What you have to understand and realize about value for money is that it’s not just about the price of the products or services that your customers are willing to pay for. It is more significant than just price. It also involves the entire experience that comes along with it from start to end of the business transaction. This includes, but is not limited to, interaction with employees, level of effort, quality of product or service, suitability of the product or service to customers’ needs, and actual use of the product or service itself. After each and every transaction, customers would want to feel that their entire experience had the best value as expected or more than what was expected.
Customers will always put importance on the value for their money regardless if they are purchasing a low or high priced item. They will always look and expect for an overall value for their money. However, the higher the price of the item is, the more value they will expect.
A customer purchasing an item worth $10 may be satisfied with a standard customer overall experience, but a customer purchasing an item ten times the cost will expect an above standard customer overall experience. This is why posh retail stores always provide VIP treatment to their customers. This is what customers who spend hundreds or thousands of dollars in these retail stores will expect and some will even demand for it, and you can’t really blame them. High cost items comes with equally high level of experience.
This does not mean that price is not important to customer. Majority of customers will still go from one store or website to another to shop for the best prices, but not all will sacrifice best value just to get a bargain. Some research have shown that customers who found a store with the best price can easily get turned off by the service or treatment they got and shop somewhere else even if it means paying a higher price.
Value for money is relative and dynamic. It differs from one customer to another. What one customer considers as value for money may not be the same as another customer. What one customer considers currently as value for money may change in time. With the changing times, trends, and economy, customers’ value for money will be highly influenced to also change. With this in mind, the value that you offer to your customers need to be frequently evaluated to ensure that what you are offering is still of value to your customers. Some perception of value for money will not put too much relevance whether the price is low or high. A customer may find a high priced cellphone to be of value for money and at the same time also consider a lower priced cellphone to be of value for money.
Is it your obligation to ensure customers get value for their money? The answer is a resonating “Yes”. Giving the best value for your customers’ money doesn’t not mean you have to cut corners on the quality of your products and services. What you offer as an overall experience to customers plays a significant role than just what you sell. If the customers feel that the value you are offering is not worth the amount they are willing to pay, then do not expect a purchase. With more disposable income nowadays and wider variety of options, customers are becoming wiser shoppers. To be successful in this, you have to focus on the value that the customer will get and not just the price that comes with it. You have to convey the value so strongly that the customer sees beyond the price and perceives the value to be worth their hard earned money.