Value.
We hear all the time, all over the place.
The key to wealth, relationships, and business branding.
The reason businesses fail or succeed is all up to how much value they provide.
But truly and honestly, what is "value"?
There are few words that trigger me and take me back to 12th grade physics class.
Prior to that class, I lauded myself as a great student.
However, everyday at 8:25 am I was bombarded with concepts that my brain could not comprehend.
Acceleration, velocity, speed, momentum, gravity; I could see, and read but not understand.
Today, the word “value” gives me the same vibes.
Don’t know what I mean? Here are a few definitions of the word “value” and let's see how you feel after reading these…
"Brand value is the sum total of how much extra people will pay, or how often they choose, the expectations, memories, stories, and relationships of one brand over the alternatives." - Seth Godin
"A brand's value is the emotional connection it creates with its customers, making them loyal advocates who stand by the brand through thick and thin." - Richard Branson
"The true value of a brand lies in its ability to convey a unique promise, deliver consistent experiences, and build trust among its target audience." - Angela Ahrendts
"Brand value is the intangible asset that sets a company apart from its competitors, commanding customer loyalty and allowing it to charge a premium for its products and services." - David Aaker
"In the digital age, brand value is not just about sales figures or market share; it is also about the online reputation, social influence, and overall perception of the brand in the minds of consumers." - Simon Mainwaring
I repeat, WTF IS VALUE?
Ice Cream
To be successful in branding and business, you must have an understanding of value.
However when I tried to define it , I ended up with one parallel word to define value.
Ice cream.
If you went to an ice cream shop and walked up to the clerk and said, “I’d like one ice cream please!”
What do you think she would ask you?
Exactly, “What flavor would you like?”
The same is true about value. There is not one flavor for value.
There are key ingredients that must be in the formula to make ice cream.
The same is true for making value.
So what is the base formula for making value?
Value Exchange
To start the definition of value you first must understand a term called value exchange.
“Value Exchange” is the action that occurs when people perceive that after the exchange they will have equal, different, or greater value.
The exchange of time for a meeting to discuss a business idea.
The exchange of time to hang out with a friend.
The exchange of an item for money.
The exchange of phone numbers for communication.
In order to create value we need an initial exchange.
Yet, we also need to cause people to repeatedly perform an exchange.
This leads us to the next two elements of value.
Expectations & Trust
After an initial exchange, there are two more doors that one must go through in order to build value.
Those two doors are expectations & trust.
After an exchange we all walk away with expectations, if those expectations are met, the level of trust goes up.
If those expectations continue to be met time and time again, no matter how things may change through the exchanges, Trust is developed.
Once trust is established, we finally have value.
How you decide to do that becomes nuanced depending if you are communicating in the digital world versus the tangible real world.
Let’s explore 3 ways that you can define value in each of those worlds.
Digital World
In the digital realm, value takes on new forms and challenges as technology transforms the way we engage one another.
Value is determined by the arrangement of well crafted pixels.
Users can now determine value with a swipe left or swipe right; or just doom scroll past your content.
As you present your brand online you must navigate the intricacies of perceived value, convenience value, and social value to create meaningful connections.
It is truly the only way to foster attention, interaction, expectations and eventually loyalty in a crowded virtual space.
Perceived Value
In the online world, perception is KING Perceived value is built by creating the expectations that you plan to deliver on for your audience. One of the best ways to do this is with your brand’s visual identity. Your visual branding elements, user experience, and online presence can create the perception that you want your audience to believe. What should be secondary is the use of messaging to create your perception. The old adage of “show me, don’t tell me” applies best to perceived value. Sometimes, your perception can be built by your audience. So if your perceived value is only created by what you say about yourself, and it starts to clash with what others say about you, your value, trust in meeting expectations all diminish. So when creating those perceptions, you might bend the truth but I advice to always exercise truth in your advertisements and branding elements. So instead of using creative energy to create a fake perception, Use creativity to cultivate a positive “value proposition” that speaks to your audience's aspirations. People aspire for health, wealth, happiness, and great relationships. Start there.
Convenience Value
If perception is King, convenience is Queen. In the digital world, everything is accessible by pressing a few buttons. Need food, clothing, shelter, employment, friends, and family; all accessible by pressing a few buttons. And it is proven, the more efficient you can make the value exchange the better. So craft your messaging around the ease, accessibility, and efficiency you provide through your digital presence. Include factors such as a user-friendly website, intuitive navigation, set it and forget it type routines. But don’t forget to state what you are helping your customer gain through convenience
The most common expectations are to save time, money, and lowering stress. Brands that prioritize convenience, can forge stronger connections with their audience by enhancing the overall user experience.
Which is a way audiences rate how much they enjoy the efficiency of your value exchange.
Social Value
Okay if perceived value is King, and convenience value is Queen, then social value is the annoying sibling that just won’t quit borrowing your stuff. In the digital world, social value refers to the reputation you have amongst your connections, community. It is how you are known and how you know others. It is the building of belonging that a brand fosters among its audience. It is the sharing of experiences with you, and participating in online conversations about others. Successful digital brands understand the importance of building authentic relationships, encouraging user-generated content, and creating spaces for meaningful interactions. Great social value can be built in comments and DMs When you approach the value equation you are fulfilling the expectation for a sense of community that creates loyalty. So at the very least, treat your audience them like a sibling you care about. Warning! Social value is a double edge sword.
If you lean too hard into one group or identity, you can start to create a reputation for exclusion. Without even trying you can create a clique. Cliques are great for support; emotional support and financial crisis support. But cliques can also block your ability to value exchange with people who don’t identify with them. Know your market, and the diversity that exists within it. Build social value that welcome new people to connect with your brandand your audience.
The Real World
A brand experienced in the real world has different challenges and opportunities than a brand experienced through digital means.
Value exchange is determined through interacting with a human senses.
Value exchange is also most likely done through human to human interaction.
As you present your brand in real life you must navigate the intricacies of functional value, emotional value, and cultural value.
These are the best way to start crafting trust through interaction and eventually loyalty.
Functional Value
In the context of real-world branding, functional value is where EVERYONE should start Functional value is quite often the deciding factor between weather or not someone “buys” Once someone has your product in hand, or experiences your service in person, if it doesn’t function the way you said it would, you are done. Your tangible benefits, utility, and practicality is what every customer wants to experience Your audience is testing your features, performance, and quality. A live demonstration on how their problems are solved, needs fulfilled. How does this brand enhance my life? By focusing on delivering functional value, on a scale, you establish yourself as reliable, and trustworthy.
Emotional Value
Emotions are real. But they aren’t always true. When focusing on the generating emotional value in the real world, consider creating it as actualized perceptional value. You can develop a deeper sense of trust when you meet expectations by focusing on the rational aspects of emotional value. Now, some people teach how to create messaging that speaks to the irrational side of emotions. In the short term that approach may work on a person to person case. It may even boost your product or service to the level of a fad. But it will not deliver long-lasting results. Despite what is preached, most human beings do NOT live day-to-day in an irrational manner. Most people want to live happy, healthy, controlled lives as they try to grow value for themselves. Most are overwhelmed with how to do that because their emotions are preyed on so much but brands that fail to deliver trust. Take the opportunity to cultivate emotional value through storytelling, evocative visuals, creating memorable experiences, and aligning with customers' positive aspirations. By forging a positive emotional bond, brands can create lasting impressions and establish loyal customer relationships.
Cultural Value
Cultural value refers to the echo a brand has within a specific cultural or community. Consider trying to achieve cultural value like trying to harmonize in a choir. It includes your brand’s societal values, traditions, and beliefs. I underscored your brand’s for extra emphasis. The values your brand presents should not be a 1:1 of your individual values because every individual is biased. Continuing with my musical analogy, creating your brand societal values solely off of your own personal values is like trying to sing a solo in the middle of a choir. The key to being effective is to sing your part in a way that it harmonizes with others. Cultural value rarely works when you try to be the controlling factor of society's values. Recognize and embrace cultural value and position yourself as an advocate. Contribute to social conversations, and create a meaningful impact in the communities you serve. Be culturally aware that your market is far more inclusive and diverse than you can imagine. No matter how controversial, a brand will be dumped far faster than any ideal. Choose how to target your audience and become an echo chamber for positive social change.
Conclusion
Now you have 6 different flavors of value.
In the context of branding, value is a multidimensional concept.
It takes on different forms depending on weather you are communicating in the online or real-world.
Understand how perceived value, convenience value, and social value work in the online realm.
Pay attention to the functional value, emotional value, and cultural value in the real world.
Remember, delivering value is an ongoing journey that requires continuous adaptation.
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Which of these types of value do you use regularly?
Leave your answer in the comments below!
Good Luck!