NICK MARTIN – Enterprise Account Executive/West Coast
No matter who you are, what is important to you, or where you live in the world, everyone is looking for value in all facets of life – is $20/mth for Netflix Premium value enough to sign up? Will spending 30 minutes running in the park give me value for my time? Are 2 goats a good trade for 10 chickens?
The most obvious and frequent value we look for is value for money. Insert Google Search Definition: “Best value for money is defined as the most advantageous combination of cost, quality and sustainability to meet customer requirements.” Yet, these types of definitions don’t take into account the intangibles when it comes to value.
Every time we go to buy something we either consciously or subconsciously ask ourselves, how much am I willing to spend on this product or service that meets my needs, so I can walk away from the transaction and feel as though (perceive) I have obtained value for my outlay? This could be your morning coffee ($5 is not value for money by the way) or even a multi-year office lease for 3,000 employees. We are always looking for that feeling of value.
There are all sorts of Marketing ploys to help the consumer/buyer feel as though they have “won” and this extends from retail/consumer purchases, right through to complex B2B sales – 2 for 1 offers, 50% off, join our members club and receive more value, act as a reference and we will lower our price etc etc.
Both parties – buyer and seller – want to walk away from that particular transaction and feel as though they obtained value.
So through these assumptions what we are saying here is, it is how we feel that gives us that sense of value. Words like feel and sense aren’t really quantifiable, so you wouldn’t think that signing off on a $1M data security purchase would include this narrative, but I think it would surprise a lot of people that feeling like you have received value, is an important component in the decision-making process of the buyer.
Don’t get me wrong, when a CFO sits down to assess the value of making a $1M decision, they are going to be looking at all of the different types of value this purchase is going to bring to the company – hard cost savings, softer productivity & opportunity-cost savings, decrease in headcount due to automation, potential data breach avoidance, and all of this over the entire contract life cycle. So there has to be tangible value in order to sign off on such a purchase, or they are in fact derelict in their duties as a signatory of their company.
But does that CFO feel as though this purchase is bringing value to their organisation? If it is a line ball decision on whether to go ahead and sign the contract or not, then this feeling (or lack of it) may contribute even in the slightest way to the ultimate decision.
This post is not about coming up with ways to try and deceive the buyer into thinking (or feeling) that they have obtained value in a particular purchase when they have not, it is merely to highlight that the buyer does of course rely on facts and hard evidence in order to buy something, but they also want to feel as though it’s a good deal.
So tomorrow when you tap for your morning coffee, I wonder whether you will hesitate and think is this coffee value for money? Or whether you might just say to yourself I feel like this coffee is value for money, so I’ll pay for it regardless.
Does anyone else like to feel as though they found a bargain, and how much does that feeling play a part in your decision making?