Increase the perceived value of a product
Increase the perceived value of a product
1. Use creative copy to reframe product prices and decrease perceived costs without changing perceived quality.
Copy that decreases perceived costs without changing perceived quality includes using words like bargain instead of cheap and exclusive instead of expensive. For example, Volkswagen lowered the perceived cost of the up! by comparing the price to two lattes a day, an amount which many won’t think twice about spending, thus reducing its perceived cost.
2. Combine scarcity and premium pricing to influence perceived value.
Studies have shown that price can have a significant effect on the way people perceive value. Researchers at Stanford GSB and the California Institute of Technology found that if a person is told they are tasting two different wines – one that cost $5 and one that cost $45 – the part of the brain that experiences pleasure becomes more active when they think they are tasting the more expensive wine, even though they are, in fact, tasting the same wine. Scarcity is one of the pillars of modern persuasion and is the primary reason Shamrock Shakes and the McRib sell so well. You can base scarcity on quantity or time constraints.
3. Add an element of altruism to your brand and value proposition by supporting a cause.
A survey found that 94% of consumers would switch to a brand that supports a cause and 20% would buy a more expensive product if it supported a cause. Corporate altruism creates a “halo” effect for a company and increases the perceived value of its products.
For example, one of Do Amore’s value propositions is that they give two people water for life when you buy an engagement ring, so you can feel even better about an already special occasion.
4. Reduce perceived risk by reinforcing security and credibility.
Perceived risk includes the level of uncertainty regarding the outcome of a purchase decision, and research suggests that when perceived risk is lower, perceived value is higher. Therefore, quelling a customer’s doubts about their purchase decision increases perceived value. Some of the ways you can reinforce security and credibility to reduce perceived risks include: Offering money-back guarantees, a free and easy return policy. Adding trust or security symbols and clear contact information to your site.
5. Add social proof like customer testimonials, social media feedback, or case studies to your products.
Show any proof that people love your product. Adding social proof further helps lower perceived risk, thus increasing perceived value. For example, CXL proudly shows the rave reviews their conference has received, in addition to last year’s videos and other social proof.
6. Focus on improving the different parts of the customer experience you offer.
Details, like packaging and shipping, can sometimes matter more than the product alone. Ask, What can I do to improve packaging, service, design, or convenience? For example, if you sell a great product but are having trouble generating sales, consider offering a free or fast shipping option to increase the perceived value of your offer.
7. Avoid bundling expensive products with inexpensive products and simply promoting the package.
Bundling expensive and inexpensive products can actually lower the perceived value if not done right. Establish the value of the individual items first, particularly the most expensive one, if you have to mix products with different values. Focus on non-price attributes, like durability or comfort, and emphasize the addictive nature of bonus items to reinforce the total value offered and reduce the devaluation effect of bundling mixed-value products.