With the development of society and the advancement of science and technology, marketing concepts, methods, channels, etc. will emerge in an endless stream; the only constant in this world is change, how can we survive in the change?
Many times, we need to pay more attention to those constant, essential things.
So, what is the essence of users buying products?
1. What users buy is actually “perceived value”
Why on earth should users buy your product?
Imagine we go to buy an item by ourselves, why?
Is it because you like it? Is there practical value? Are you good looking? Is it cheap? Or cheated? ...
In fact, what users buy is "perceived value", not "value".
What do you perceive when you buy a product?
You see the packaging design of the product, the origin information, the use of the ingredients, you may also search how other people think about the product/brand, how is the after-sales service, is it complicated to use, how much does it cost, etc.
So, what is perceived value?
Perceived value is the subjective evaluation of the utility of the product or service obtained by the user after the user perceives the benefit of the product or service and subtracts the cost of obtaining the product or service.
Expressed as a formula:
Perceived value = Perceived benefit - Perceived effort
We can see that the perceived value model has two key elements: the benefits felt by users and the costs paid by users.
2. The main points of perceived value
Based on the perception model above, we have distilled some key information points:
1. Perceived value is actually a trade-off between perceived benefit and perceived effort
To give a simple example, there are two fruit stores. The cherries in store a are 100 yuan per catty, 500 meters away from your home; the cherries in store b are 90 yuan per catty, 2000 meters away from your home. So, which store would you choose to shop at?
Which store you go to consume does not depend solely on the price factor, you may also consider the distance factor, and then decide which store to go to according to your perceived value.
2. The main body of perceived value is the user itself, not the enterprise
Sometimes, the products we make are very good, but users just don't pay, why?
Perhaps it is because the products we make are products developed from the perspective of the perceived value of the enterprise.
In the final analysis, users cannot perceive the value of the product, or the perceived cost is greater than the perceived benefit.
Therefore, in the product development stage, in addition to considering the real needs of users, the factor of perceived value model also needs to be considered. On how to gain insight into the real needs of users, you can read this article: Do you really understand user needs?
3. Perceived value is individual and individual
Let’s take the example of buying cherries above. When you have a lot of time and want to go for a walk, you may choose to go to store B, which is far away, while some people may choose store A, which is closer. Some people like to shop online, while others Love the physical store.
Here is another inspiration for us, that is, the problem of target user definition. Who your target audience is, determines your marketing strategy to a certain extent.
4. Perceived value is dynamic, not static
To give a simple example that is common in life, for the same item, we may think it is very good and great when we see it today, but maybe you will feel very low tomorrow.
You are very tired today and just want to go to the nearest store to buy cherries. Maybe tomorrow you will be excited and want to go to a farther store for consumption. In order to save 10 yuan, you would rather walk a few more steps.
Why are you not using your Nokia phone today?
In the Nokia era, we pursued the quality of mobile phones, and now we also pursue fast running speed, high appearance, beautiful photos, and country email list good sound quality. . .
Essentially, the Nokia phone itself hasn't changed, the environment around us has changed, and so has the way we perceive value.
3. How to let users choose you
Now that we understand how perceived value works, let's look at how to get users to buy your product.
According to the model of perceived value, there are actually only two ways:
Improve the perceived benefits of users;
Reduce the user's perceived effort;
Through the above two methods to improve the user's perceived value, you can increase the chance of being selected by the user.
In essence, how to make users choose you is actually to analyze the whole process of users from understanding, to interest, to purchase, to sharing and dissemination, how can we make users perceive benefits to a greater extent, and how can we make costs less easy to perceive arrive.
Perceived benefit vs product benefit:
However, many people mistakenly believe that perceived value is only about product benefits, so they continue to increase investment in product research and development. However, even if the product itself is very valuable, if users do not perceive its benefits, why would users choose you?
In terms of improving the perceived value of users, we might as well learn from Xiaomi's approach:
How to let the user perceive how good the performance of the mobile phone is?
You can tell by running the score; Xiaomi runs the score at the new product launch conference, and then throws out a set of chart data, and users can instantly feel the benefits of this phone.
Perceived cost vs monetary cost:
Many people also mistakenly think that the perceived cost is only the monetary cost, so they choose to continuously reduce the price to obtain more sales; the price reduction is also strategic, and how to make users feel the benefits is the key.
So, if you sell a product for 10,000 yuan, how do you reduce the price so that users can feel that you are really making a profit?
Although there is no difference in the amount between "1000 yuan straight down" and "10% discount", users will feel that the "straight down 1000 yuan" discount is more powerful.
Now, we know the difference between perceived benefit and product benefit, and the difference between perceived cost and monetary cost.
Enhancing product benefits and reducing monetary costs are common ways to enhance user-perceived value.