“Offering a few discounts doesn’t fix the value equation. Those are really just temporary bribes to convince customers to stick with you a little longer. They can even have the inverse effect: destroying the perception of value you’ve worked so hard to create.” — Dev Patnaik Of course, consumers have been feeling the pinch of price increases, and promotions can provide short-term relief. But, if leaders are looking to fix the value equation, they shouldn't confuse price with value. In his latest Forbes article, Dev explores why true value goes beyond price cuts and how companies can genuinely connect with what their customers need. How are you redefining value for your customers? #CustomerValue #BusinessStrategy #Leadership #FutureFocused
Why Lowering Prices Isn’t the Answer Suddenly, every company is talking about value and how they’re going to deliver it by slashing prices. In my latest Forbes article, I explore why this strategy often misses the mark and what companies should focus on instead. Of course, promotions and discounts should help inflation-weary customers. But at a time when consumers are getting choosier about their spending, the mistake companies are making is equating lower prices with greater value. In reality, consumers’ perception of value extends far beyond price to encompass a whole range of benefits they get from products and services—from convenience to quality to feeling cared for. And whatever perceptions of value people once held have likely changed in the past few years. If your customer segmentation or behavior map is more than two years old, it’s probably time to throw it away. Too much has changed. Rather than trying to lure customers back by dangling momentary savings in front of them, business leaders should get to the heart of the real value they provide to their customers. You may be surprised by what you find. What’s the boldest way you’ve seen a company deliver compelling value beyond simply cutting prices? #CustomerValue #BusinessStrategy #Leadership #FutureFocused https://lnkd.in/g9knQR5K
Brand Strategist | Product Innovation | Global Executive | Board Member
3moYep, Dev Patnaik - you always get it right.