Competing on the lowest price point is easy, adding value is not and the two should never be confused. I would argue that something can be called great value when there is a willingness to pay a price because the return is seen to be being greater than the outlay.
For example, an expensive car can be called great value if it is reliable and rarely breaks down. On the other end of the scale, low prices are not value for money if the item or service fails to meet expectations or a promised level of performance. The actual amount isn’t necessarily the issue it is the level of return placed on that amount.
Here are some ways you can become great value for your customers without relying on low prices:
Excellent customer support
This is possibly THE most important single factor to get right. Great value comes from offering the kind of support that a customer expects based on the standard within your industry, the statements you have made and the price they have paid.
From my experiences in web hosting I would consider a monthly service priced at £1.99 per month that doesn’t respond to support inquiries quickly won’t be considered great value. The same service priced at £5.99 per month but with quick and accurate support responses will.
Become more than a commodity
To become more than just another faceless supplier amongst millions you need to have a clearly identified voice that people want to interact with and add value. This has become much easier for small operations to do on a larger scale thanks to social media (Twitter et al).
For example, when it comes to our social media one of the philosophies we always have in mind here at Heart Internet is “How can we help our customers make their website better?”
No disconnect between promise and reality
No matter how much you cost, over promising a product or service is a sure fire path to high levels of customer churn and complaints. For example, if you only offer particular services during office hours, make that clear before purchase and there will no complaints. Additionally if you know your service or product cannot be used in certain situations or perform certain tasks, at the minimum don’t hint that they can, or ideally make sure your customers are aware of this before they try and then become frustrated.
Reliability of performance
Again, this is a relative area, but does the product perform to at least, and ideally beyond the customer’s expectations? Products and services that are great value for money are often so reliable you don’t even notice them. From my perspective, a £5 jumper from a cheap clothes store that only lasts one wash is not as good a value as one that costs £50 and lasts for years.