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One big aha! moment I had when studying subscriptions was the difference between perceived and real value. To win new customers, you have to communicate value to your buyers. They make a decision based on their perception of value.
Once you’ve won a customer, they are using your product. They KNOW the value. Hence they are using real value to decide whether or not to stay or even to upgrade.
But that’s not really true. Just because someone is using the product, it doesn’t mean they know the complete value. Did anybody capture before and after cost and revenue numbers? What costs did they expect to reduce? Did they? How much additional revenue did they expect to receive? Did they? If nobody documented these results, then your customer still uses perceived value, albeit with a more informed perception.
If you want to keep and grow customers, which you do, then someone should be helping them quantify their achieved value. You could call this proven value. When you can prove a huge ROI, it is very unlikely a customer will churn, and it is more likely they will choose to invest more in you.
Does your company prove the value after you’ve delivered it? I’d love to hear about it.
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Now, go make an impact!
Tags: pricing value, value, value metrics
