What Customers Truly Value? 30 Elements (Bain)

Customer Satisfaction
Knowledge Center

Forum

New Topic

Chloe Xu
Director, Australia

What Customers Truly Value? 30 Elements (Bain)

Marketers have generally spent much time and effort on the pricing side of the value equation (marketing mix), because it is the easier part. Given the psychological complexity and analytical difficulty, few studies have been done to understand what customers truly value, allowing companies to improve the value proposition of their brands / products.

Almquist, Senior and Bloch (2016) identified 30 ‘elements of value’ in 4 categories of customers' needs – functional, emotional, life changing, and social impact. These comprise the universal building blocks of value that customers normally appreciate. The survey conducted by the research team indicated that offering certain optimal combinations of value elements improve customer loyalty and as a result revenue growth and company performance.


Interestingly, the research also found three patterns of value creation worth of special notice:
  • SOME ELEMENTS MATTER MORE THAN OTHERS. Perceived quality is the king, and no other elements can make up for a significant shortfall on it. The critical elements after this vary from industry to industry.
  • DIGITAL FIRMS ARE PERCEIVED AS OFFERING MORE VALUE, excelling on elements of "Saves time" and "Avoid hassles".
  • MULTICHANNEL BUSINESSES STILL WIN ON CERTAIN ELEMENTS, such as some emotional and life changing elements. Combining online and physical channels (Bricks and Clicks) is proving to be more powerful than either one alone.
The 30 elements can help companies to identify new value to offer, and to refine their product design, delivering more elements. Also they can help identify where customers perceive the company’s strengths and weaknesses.

To allow the above, creating customer value needs to be put as a priority on the agenda of company leaders and it has to be regarded as a key discipline in certain areas like product development, pricing, and customer segmentation. Also there should be someone in the company to explicitly think about, manage, and monitor value.

Source: Almquist, E., Senior, J. and Bloch, N. (2016). The Elements of Value: Measuring and Delivering What Consumers Really Want. Harvard Business Review, 94 (September), pp.47-53.

  Jaap de Jonge
Editor, Netherlands
 

Customer Value | Consumer Value

Thanks for sharing. I agree that customer or consu (...)

  S. Lago
Business Consultant, Canada
 

Customer/Consumer Value and Service

An often forgotten aspect of customer value is cus (...)

  Marcel Wiedenbrugge
Consultant, Netherlands
 

What is (Customer) Value and Why is it So Important?

In our book "Customer Profit Hacking" we describe (...)

  Norman Dragt
Netherlands
 

Some Critical Remarks on the 30 Elements

I do wonder how they made this distinction between (...)

  Donny Le
Entrepreneur, United States
 

It's Silly to Go After all 30

It turns out that by scoring high on MOST of those (...)

  CLAUDIUS RWODZI
HR Consultant, Zimbabwe
 

Customer Value? Start with your Employees!

I tend to agree with @S. Lago on promoting a cultu (...)

  Norman Dragt
Netherlands
 

Negative Customer Value

As this is just hear say, so I am not sure, but St (...)

  Chloe Xu
Director, Australia
 

How to Measure and Manage your Customer Value

Customers are the key to any business and to creat (...)

Participate and leave a comment
Exchanging your ideas stimulates your personal and professional development. And you can help other people! Please motivate your point of view. You can still edit your comment for 3 hours.

Start a new forum topic

 

More on Customer Satisfaction
Summary
Forum
What Customers Truly Value? 30 Elements (Bain)
What is (Customer) Utility? Meaning
Assumptions of the Kano Model
Software for Measuring Customer Satisfaction
🔥Customer Satisfaction Depends on Problem-Solving Efforts, not on Empathy
C-U-S-T-O-M-E-R Service Dynamics in the New Economy
How to Trigger Customer Satisfaction - Variables
Risks associated with Excitement Factor
Using Kano Model for Strategic Planning
Customer Emotions and Actions
Other Attributes of Features of a Product or Service
Customer Satisfaction as Research Driver
Research Software Development Industry?
Best Practices
Example FMCG and B2B business
Overall Satisfaction in Customer Satisfaction Questionnaire?
Alternate Methods to Measure Customer Satisfaction
What is Customer Satisfaction? Definitions
How to Design a Generic Model Serving Unique Customers?
Sensemaking: What are your Customers' Needs? Really?
Customer Satisfaction and Competitive Advantage
Special Interest Group

Are you interested in Customer Satisfaction? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Customer Satisfaction
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.8 - Last updated: 11-5-2021. All names ™ of their owners.