The influence that tech has had on people’s perception of value is evident. Clients now have access to more information than ever, whether it’s through comparison sites, social media and even online reviews. This has helped to shift the dynamics that accompany perceived value. If businesses want to keep and improve the perceived value they have, they need to be innovative, stay ahead of the curve and differentiate the products that they provide.
Effects on personalised offers
Consumer loyalty is about so much more than just repeat purchases. Technology influences advocacy and visceral engagement. Loyalty programs are no longer simple reward programs. They are now personalised and catered to individuals based on consumer data analysis. Offering a flat-rate discount to a range of customers is no longer cutting it. Businesses need to cater their offerings so they can offer more value, rather than just cheaper prices. The show Deal or No Deal is a prime example of how the perceived value of something can change. Even in Slingo Deal or No Deal, you will receive offers from the Banker, based on the cash prizes that are left. As more boxes get opened, the perceived value of the box the consumer has, changes. The value of the box will also vary depending on the individual. Someone with a lot of spare capital may be more willing to take a chance by declining the banker’s offer. With technology influencing perceived value, alongside factors such as the price, customer service, delivery time and even reputation, businesses now need to take extra steps to ensure that they are focusing on the bigger picture.
Impacts on the business landscape
Not only is the digital revolution changing the business landscape, but it’s also redefining the concepts that underpin commercial strategies. The quality-value-loyalty chain is a paradigm of consumer behaviour. It’s now being interpreted differently, as the result of technical advancements. Researchers have to try and comprehend and adapt so that they can keep up with the dynamics of this exciting transition.
Brands going forward need to understand the changing dimensions of the digital age, as value is now perceived differently within the interconnected consumer market. Novel strategies have to be explored to retain loyalty as a result of intense competition, with a prime focus put on personalisation. If brands can cater to what each segmented group of customers sees as being valuable to them, this changes the dynamics of what it is you are offering.
The product itself doesn’t need to change, as with the Deal or No Deal example. The surrounding elements, however, can influence what the perceived value is. Brands can take steps to alter their perceived value by offering things like free postage, and better customer service and by also trying to expand the scope of their products.
With tech being a driving force behind perceived value due to the sheer accessibility of information, brands need to take steps to try and retain consumer loyalty while building a solid foundation in which to succeed in the future.
