First off, what is value. Oxford dictionary defines value as the importance, worth, or usefulness of something.
Business dictionary defines value in accounting term as the monetary worth of an asset or business entity.
In Economic term – as the power of a good or services to command another goods or services.
In marketing term – as the extend to which a good or services is perceived by its customer to meet his or her needs or want measured by customers willingness to pay for it.
It depends more on the customers perception of the worth of the product than on its intrinsic value.
Out of all three business definitions of value, the last definition is the most applicable when we want to talk about the value of a brand.
A company budget on its branding effort is actually spending towards its marketing campaign.
And we know that the value of a brand is how its perceived by their customers from the experience they have had with the brand many times over.
So what that actually imply here is, your brand value or worth is measured in terms of the perception your brand create each time customer do business with you and that’s of course what they are willing to pay for.
HOW CAN YOUR BRAND MEASURE AND CREATE ADDED VALUE.
The simple answer is – create perception.
That’s the real product they go home with. lets look at it further down.
But before that, let me help you understand that value are virtues a brand promises to deliver.
That said, the value of a brand is not in the fine logo, name, tagline or the product – all these things are commodity and tangible stuff.
A brand’s value is what it stands for and won’t take anything less to compromise that stand.
And that stand is the line of divide between what it promises to deliver and what the customer experience is like at the close of the deal.
Added value is how brands acquire and retain customers.
Don’t know where to start? Here are 7+ ways to create added value that can be incorporated into your brand’s strategy to increase it worth or equity in the marketplace.
- CUSTOMER RELATION AND SATISFACTION:
the other day I went to the super market to do some shopping for the season, I met a lady in the grocery section. I ask her where to get a particular product they have ran out of stock of..
Her reply was saucy, I wasn’t so impressed with that but felt bad a little for ever asking. imagine her doing that to 5 customers a day. Before she realize it her sales will have been going down the drain.
That was so unprofessional you say!
- TRUST AND TRANSPARENCY:
In today’s online business world trust is the social capital you need to earn at all cost because the pay off is incredible.
It brings in repeat sales create customers loyalty – that provide cash-flow from current customers, that bridge between you and your customers. Falling short of this may result in a fall in your bottom-line.
That customer loyalty can increase your customer base which is a “goodwill” that is used to measure the worth or equity of your brand as an asset.
Don’t call what is blue black, that could soil your image in the long run.
And don’t over-promise and under-deliver it’s much ethical to under-promise and exceed expectations. That surprise package can be in form of freebies, giveaway and guess what?
Every customer I have come across feel so good about that extra thing, than when you let them down.
Now, come on talk to me, how would you feel if you were in that shoes, where you were disappointed huh!
- BRAND VISIBILITY:
People always believe that a brand with larger coverage, regular campaign and publicity is more valuable than the brand that does little or non of this.
they give credit and attach more value to an ubiquitous brand and pay less attention to less known brand.
- BRAND PERCEPTION:
Whenever you are thinking of creating a valuable brand. Know this – Don’t get overly obsessed about creating a better product of your brand, instead focus your resources on creating a better “perceived value”of your brand.
Brand value is built on your customers experience with your product and services. The accumulation of this experience over time is what determines the value they place on your brand.
With a positive experience they can conclude and assume your brand is of quality and a poor experience gives the impression of low quality.
As a free market, this will of course inform the decision of the buyer as to whether to chose you as opposed to a competitor or have the benefits of your brand been referenced to their friends and family.
- RELIABLE AND PREDICTABLE:
Reliability is an hallmark of standard. Customers know what to expect each time they come to you. Don’t try to short change that if you don’t want to come off as inconsistent which will show on your trust metrics.
You can see how all these are intertwined. They are delivery system you need to work on and put in place.
The fall out of one may result in the malfunction of the entire business. Read E-myth Revisited by Michael Barber … I took a career with a Foreign Exchange company shortly after graduation.
In that office, there are brokers, expert traders and learners and clients. just at the entrance, there’s a dispenser of coffee drink for all. Through out my stint there has never been a time we run out of coffee.
What that does is – it creates a perception of been “reliable” and programs our minds to think of a phrase like ” you can rely on us for all other things” floating in our minds.
Make your brand an experience – an interesting one at that. A free home ride for your company staff every once in a week, a get together, a trip to the casino at Las Vegas – something memorable can do the trick.
- SOLVE A PROBLEM FOR YOUR CUSTOMERS.
Value creation is a two way street that involves two channels.
The consumer – who comes with a problem and the producer – who goes to fetch you the solution to the problem in question.
Solving a major consumer problem is a way of adding and creating value not only for your customers but also for your brand. What people buy is value- the brand’s value. Does it make them save more, have more time, pursue their dream lifestyle?
- CREATE A CATEGORY AND DOMINATE IT:
What is a category:
It’s defined as a class or division of people or things regarded as having particular shared characteristics.
The point is just make sure you are a thought leader on a subject, an advocate, a champion of a course in your field, an ambassador – then you will be recognized and celebrated.
you have something special some group of people out there in the world needs. It doesn’t matter who has been into in it before, all you need is a touch of your difference and that’s the idea.
You don’t have to struggle to be better.
Because their is not real competition for being different. You are you and you alone.
Being the first in a category is enough to create the perception of being the best and that invariably create the perception of being the most valuable to command the market share for your kind of brand.
See how coca-cola command a premium over Pepsi-cola.
Dominance is possible if you can make outstanding valuable contribution in just a section in your industry. There must be something specific you are good at and that’s exactly where your leadership finds expression.
You can never lead except in a well defined field, that is because you don’t become a master at anything by being a jack of all trade.
That leadership status is never an appointment you wait for, its your assignment.
So your job is to discover and define in a well specific terms where you fit in and belong in your field and stay committed to developing capacity.
Read my lips. I do not say acquire certificate. “I say again develop capacity” These are two distinct schools of thought.
Bluntly speaking, you don’t need any college degree to dominate, all that is required is capacity – your ability to learn and develop your mental faculty for a position, to perform a task or solve a market problem.
That is what qualifies or describe you as a leader – a market leader in this case in your chosen field of endeavor.
It’s quite pathetic in a dynamic and fast changing world, the traditional institution doesn’t confer capacity but degrees for rote learning and for wearing student identity for 18+ (In Nigeria) years without self identity. Taa!..
Dropping out of school doesn’t make you a life drop. Your degree doesn’t hold any value but your delivery. You got untapped potentials to be developed on your inside
History has recorded too many people to number who never had any former schooling in a particular field but later became captain of industry.
Pop culture (popular culture) and the blue chip industry is a good example of the creative industry. This millennial are setting the pace and blazing the trail in their own term. Bring in a unique blend of style to the music and tech industry – a segment in the creative industry.
Bear in mind that creating and dominating a category is easy and much easier in the creative industry – the industry that are taking the digital world by storm.
That implies, you can’t dominate if your not creative enough to bring in something different. And like I say always – you don’t have to reinvent the wheel to do it differently.
Just a touch of creativity to the existing will do it. Read my post on Originality. You will be glad you did.
- SWOT ANALYSIS:
This strategic tool will of course assist you to develop your brand’s value statement, find your unique selling point, (USP) and predict customer demands based on market trends.
Just a reminder, you are not going to create added value to your brand just by reading this valuable piece of article, but by taking a step to implement the points listed here in right now.
What other ways not listed here have you used to create added value to your business? Please feel FREE to share with us at the comment section below.
And don’t you forget to share this post. That’s another way to add value.
But let’s look at it further down.