“Customer Value = Perceived Benefits – Perceived Costs”
It’s a simple equation learned by marketers early in business school. But which side of the equation can best be influenced to motivate a sale? Which has more enduring effect on the customer experience?
Adding benefits over discounting is the better play. Here’s why:
1. Earns Stronger Goodwill
A customer feels better receiving more of something than feeling like they got something for less. While everyone likes a deal and money saved, adding things like a free attachment with a sweeper purchase is a “purchase trophy” of tangible value
2. Lengthens the Value Tail
Not only do we put a higher value on products or services that we pay for, but that value endures. Having a tangible reminder of that transaction lengthens the “value tail” and leaves a more enduring impression of the brand. (more…)