How to Increase the Perceived Value of Your Services
Perceived value is your clients’ overall impression of you and the services you offer. According to BusinessDictionary.com, perceived value may have little to do with the price, and instead refers to your ability to satisfy your clients’ needs.
When you’re selling a service instead of a tangible product, the perceived value carries even more importance. You must not only provide a useful and relevant service to your clients, but you also have to get them to recognize the value they are getting before they make their initial purchase, and afterward for each subsequent purchase. You want your clients to view your services as irreplaceable; the only way to solve their problem and fulfill their needs. Having a high perceived value not only allows you to charge more for your services, but it can reduce price objections when it comes time to make the sale.
Perceived value can be increased by demonstrating the most valuable, tangible benefits your clients stand to gain by purchasing your services. Here are a few of the most powerful benefits to highlight in your sales copy and in conversations with potential clients to help them develop an increased perceived value for your services.
Return on Investment
Instead of placing the focus on the cost of your services, try relating the clients’ investment to what they will get by hiring you. For example, help your clients to understand that they may spend a few hundred dollars to have you create a banner ad for their business, but they will continue to get a return on that ad every time they use it, quickly recouping that initial investment.
Free Time
How many of your clients attempt to do themselves what they eventually hire you to do? Break down the time savings your clients can benefit from by hiring you to take over the work, get it off their plates and out of their minds so they can focus their time and attention on more important topics.
Excellent Results
You know that saying, the proof is in the pudding? Give potential clients tangible examples of how you have helped other clients achieve X, Y and Z through your services. Testimonials, case studies and references can help potential clients envision the results they may get from working with you.
Better Than the Competition
A moderate amount of fear can help clients see what may happen if they hesitate and wait instead of taking action. You can expand on this idea by talking about what the client’s competition is already doing and how your services will help the client surpass the competition and come out on top.
No Risk
Lastly, you can help the client elevate the perceived value by making an offer they can’t refuse and encouraging them to act through a no-risk offer. Try a limited trial, a free sample or some other action-based incentive to raise the value and lower the risk.
Ultimately, the perceived value is simply that — perception. But it’s important to avoid creating a false sense of value, and instead focus on demonstrating the unique and worthwhile value clients can benefit from when they work with you.
How do you help clients to see the value in what you’re providing?
Image credit: ba1969
Frequently Asked Questions (FAQs) on Increasing the Perceived Value of Your Services
What is the concept of perceived value and why is it important?
Perceived value is the customer’s evaluation of the worth of a product or service in relation to its apparent alternatives. It’s a key factor in their purchasing decisions. A high perceived value can differentiate your offerings from competitors, justify higher prices, and foster customer loyalty. It’s not just about the actual quality or price of your service, but how customers perceive its benefits and relevance to their needs.
How can I increase the perceived value of my services?
There are several strategies to increase the perceived value of your services. These include improving the quality of your service, enhancing customer experience, offering excellent customer service, and communicating the unique benefits of your service effectively. You can also use pricing strategies, such as bundling services or offering discounts on premium services.
How does pricing affect perceived value?
Pricing plays a significant role in shaping the perceived value. A higher price can often signal higher quality, while a lower price may suggest a bargain but can also raise doubts about quality. It’s crucial to price your services in a way that reflects their true value and aligns with your customers’ perception of their worth.
How can I communicate the value of my services effectively?
Effective communication is key to conveying the value of your services. This can be achieved through clear, concise, and compelling messaging that highlights the unique benefits of your service. Use testimonials, case studies, and reviews to provide social proof of your service’s value. Also, ensure your branding and marketing materials reflect the quality and value of your services.
How can customer service enhance perceived value?
Excellent customer service can significantly enhance the perceived value of your services. By providing prompt, courteous, and efficient service, you can exceed customer expectations and create a positive impression. This can lead to increased customer satisfaction, loyalty, and referrals, thereby increasing the perceived value of your services.
How can I use social proof to increase perceived value?
Social proof, such as testimonials, reviews, and case studies, can effectively increase the perceived value of your services. They provide evidence of the value and quality of your services, enhancing credibility and trust. Highlight positive customer experiences and success stories in your marketing materials to leverage the power of social proof.
How does branding affect perceived value?
Branding plays a crucial role in shaping perceived value. A strong, consistent brand can convey a sense of quality, reliability, and trust, thereby enhancing the perceived value of your services. Ensure your brand messaging, visuals, and overall identity align with the value and quality of your services.
How can I use packaging to increase perceived value?
Packaging, in the context of services, refers to how your services are presented and delivered. High-quality, professional presentation can enhance the perceived value of your services. This could include the design of your website, marketing materials, or even the way you present your proposals or reports.
How can I measure the perceived value of my services?
Measuring perceived value can be challenging, as it’s largely subjective. However, you can use methods such as customer surveys, feedback, and reviews to gauge how customers perceive the value of your services. You can also monitor customer behavior, such as repeat business and referrals, as indicators of high perceived value.
How can I differentiate my services to increase perceived value?
Differentiating your services involves highlighting the unique benefits and features that set your services apart from competitors. This could be a unique methodology, superior expertise, additional services, or even your approach to customer service. By effectively communicating these differentiators, you can increase the perceived value of your services.
Alyssa Gregory is a digital and content marketer, small business consultant, and the founder of the Small Business Bonfire — a social, educational and collaborative community for entrepreneurs.
