How to generate more sales with value hierarchy

The ultimate goal of any business is to make a profit and for most companies that come from making sales. In recent years we’ve seen companies attempt to improve the user experience and customer satisfaction in order to boost web lead conversions. One of the key components of successfully connecting to customers and ensuring that a sale is closed is understanding value. Businesses need to understand what customers value and how they rank those values. In this article, we are going to discuss how to generate more sales with value hierarchy.

What is value hierarchy?

Happy woman holding shopping bags.
Customers have different ways of attributing value to a purchase.

Firstly, let’s begin by understanding what a value hierarchy represents. Many marketers will easily flaunt the term, but their coworkers are sometimes at a loss to what they actually mean. We use value hierarchies to describe what a client values and how important those values are.

We can compare individual values and try to rank them by order of importance. Unfortunately, there is no one set of universally agreed-upon values. You must first understand that there are different levels of importance of the value you provide to your customers. After you have a good understanding of what your customers care for, you’ll know how to generate more sales with value hierarchy.

How customers perceive value

Happy woman receiving customer call.
Click-to-call software can offer increased value to your customers.

Customer value is defined as the satisfaction a customer feels after they have made a purchase. They consider the benefit they receive and how it meets their needs and demands. That is weighed against what the customer needs to give up or pay to receive the product or service. Customers can also consider how difficult or time-consuming something is to obtain. For some products, customers also take into account the scarcity of what they are purchasing. Value can also be shaped by interactions with company employees and customer service representatives.

It’s no secret that customers feel more satisfied with their purchase if the company adds a personal touch to every transaction. Allowing your customers to directly interact with employees will increase the perceived value they project onto the purchase. There is no better interaction than being able to talk to another human. We recommend using ConvertMore click to call software to generate more sales with value hierarchy in mind. Your website visitors will easily be able to reach your staff and have their questions answered. This undoubtedly leads to more sales.

The customer value pyramid

Woman carrying boxes after she is happy with her purchase.
Exceed the value your customers expect to ensure repeat sales.

Customer expectations come in several tiers, based on which we can form a value pyramid. Using this distinction we can generate more sales with value hierarchy, as not everything is equally important to the customer. The four main tiers of the customer value pyramid are:

  1. Basic value.

    Here are factors that are so universal, they are rarely expressed with words. We have things like a functioning website, accurate inventory information, and how well you perform basic services. If everything doesn’t function on this level, you can expect customers to walk away from the sale. It still might be a good idea to have exit intent popup software. That can reduce your bounce rate and prevent undetermined visitors from leaving your website.

  2. Expected value.

    Here we move from the basics which are required for your business to function and look at what customers expect. Customer expectations can vary based on which industry you are in and they can also be dictated by your competition. Here we have things like affordable prices and convenient shipping. You can boost websites sales fast with conversion rate optimization to ensure you close the deal with your customers.

  3. Desired value.

    Now that we’ve reached the more advanced tiers in value hierarchy, companies need to increase the value they are offering. Add-on features and outstanding customer service will make you stand out from the competition. Customers will appreciate working with experienced sales personnel who can go above and beyond their demands.

  4. Unanticipated value.

    Unfortunately, your competition will also attempt to add value to their services. The best way to wow customers and turn them into loyal brand ambassadors is by doing something they don’t expect. Good examples are extending your warranty, or ensuring an easy return process will catch most customers off-guard and impress them. Do whatever you can to provide a memorable and unexpected experience for customers, and they’ll be coming back for years.

Understand how you provide value

Now that we’ve gone through how to generate more sales with value hierarchy, you need to make sure you are actually providing value that customers will appreciate. What kind of value does your company provide through its products and services? You can answer this by looking at what need you to fulfill with your products.

Evaluate exactly how valuable that is for the customer and try to charge accordingly. If you are charging more than what you are delivering – you will not be meeting customer expectations for value. This can leave customers frustrated and turn them over directly to your competition. On the other hand, if the perceived value in the eyes of the customer is greater than what you are charging – your customers will walk away thrilled with their purchase.

Therefore, you need to understand the expectations and desires of your customers, even when they are unstated and unanticipated. As you can see, value has a lot to do with perception and is highly relative. You need to understand value even better than your customers, or you will have a hard time surpassing their expectations.

Your marketing and sales departments can translate emotional needs to your technical departments who actually design the products. Afterward, marketers can work on a sales pitch that will resonate with their customers and lead to customer loyalty.

In conclusion

Although there are multiple ways of defining value hierarchies, they all come down to one thing – understanding value. Once you have a feel for what your customers care for, you will know how to generate more sales with value hierarchy. Furthermore, there are numerous long-term benefits of exceeding the perceived value of your customers such as repeat sales and brand recognition. Grow brand loyalty and increase your business by carefully examining value hierarchy.

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