The elements of value

The elements of value

1. Measuring—and delivering— what consumers really want

   • BY ERIC ALMQUIST, JOHN SENIOR, AND NICOLAS BLOCH

2. THE CHALLENGE What customers value in a product or service can be hard to pin down

   • The authors describe 30 “elements of value” that meet four kinds of need—functional, emotional, life changing, and social impact—and that, when optimally combined, increase customer loyalty and revenue growth.
     • The relevance of elements varies according to industry, culture, and demographics.

3. Growing Revenue

   • companies that performed well on multiple elements of value would have more loyal customers than the rest.
   • companies doing well on multiple elements would grow revenue at a faster rate than others

4. Patterns of Value

   • Some elements do matter more than others.
   • Consumers perceive digital firms as offering more value
   • Brick-and-mortar businesses can still win on certain elements

5. Putting the Elements to Work

   • Structured listening
   • “Ideation” sessions
   • Customer-centric design of prototype concepts.
   • Rigorous choice modeling

6. key areas

   • New-product development
   • Pricing
   • Customer segmentation