We hear that word all the time.
The key to wealth, relationships, and building a money-making business.
The reason businesses fail or succeed is all up to how much value they provide.
But truly and honestly, what is "value"?
There are a few words that trigger me and take me back to high school.
Specifically 12th grade physics class.
Before that class, I lauded myself as a great student.
However, every day at 8:25 a.m. 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?
Below are a few definitions of the word “value” from industry and business professionals.
Let's see if you have clarity after reading these…
(click ">" below to reveal more value)
"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
See what I mean?
I meditated on this word "value", mentally masticating on all the definitions and applications until I had a delicious symbolism.
If you visit an ice cream shop and ask the clerk, “I’d like one ice cream please!”
What do you think they would ask you?
Exactly, “What flavor would you like?”
The same is true about value.
Value comes in flavors.
There are key ingredients that must be in the formula to make ice cream.
The same is true for making value.
This led me to synthesize the base recipe for creating value.
To define value you must start with a value exchange.
A “Value exchange” is the action of people trading their value, so that they will have equal, different, or greater value.
The exchange of time for a meeting to discuss a business growth idea.
The exchange of time to be with a friend for laughter or comfort.
The exchange of an item for money.
The exchange of phone numbers for communication.
To create value we need that type of initial exchange.
Yet, we also need to cause people to repeatedly perform an exchange us.
This leads to the next two elements of value.
Expectations & Trust
After an initial exchange, there are two more things that one must fulfill to build value.
Those two things are expectations & trust.
After an exchange we all walk away with expectations, if those expectations are met, the level of trust goes up.
If expectations continue to be met time and time again, no matter how things may change, trust is developed.
Once trust is established, we finally have value.
How you decide to execute this equation is nuanced.
There are different "flavors of value" that are trusted for success in the digital world versus the real world.
Thanks for reading my notes.
This blog post is article 01 in the Value Series written by Good Luck Gabe