We need to talk about value
In today’s marketplace, value is a far richer concept than just the price tag.
When brands use the word ‘value’ in their marketing, what’s the first thing that comes to mind?
If we had to guess, your answer might include phrases such as ‘low cost’ or ‘affordable’. While those answers are certainly part of the equation, ‘value’ is one of those concepts in the marketing world that has the misfortune of being overused and unnecessarily vague.
Do any of the following statements sound familiar, or have you said any of them before?
‘We are committed to delivering value to our customers’.
‘Our business provides the best value holidays’.
‘We need to lower our prices to create more value’.
‘We offer the best value to everyone’.
‘Our holidays are the most valuable because they are the most luxurious and exclusive’.
Value from four perspectives
So, what is a satisfying definition of value? Rather than debate the Oxford English Dictionary, let’s consider the concept more visually.
According to Mintel research, when consumers consider the meaning of ‘value’, they tend to think about four interrelated concepts: Budget, Quality, Convenience, and Premium. Let’s break these down and illustrate them with examples from the travel space.
Budget
When it comes to value for money, budget is a key consideration. Mintel reports that 61% of UK consumers embark on the path to purchase with a defined budget in mind. Given a limited money supply, they will search for products and services that fulfil their needs while staying within a manageable price bracket.
Let’s consider some in-market examples. Brightwater Holidays offers an Essentials Collection with ten great itineraries but fewer services and more flexibility than their Classic range of holidays. The Essentials Collection excludes lunches, and instead of having a dedicated tour manager, the driver will point out areas of interest.
Source: www.going.com
Going (formerly Scott’s Cheap Flights) is a popular subscription-based service that notifies members about the best flight deals from their preferred departure airports. Members pay an annual fee for access to flight deals, which allows them to save money on airfares and travel more affordably.
So, how can brands like yours deliver value to customers with respect to budget? One strategy is to create sales activation campaigns on your website with price-focused messaging that highlights various holidays available within a specific budget. This approach provides options that make finding the right holiday at the right price easier.
Quality
Prospective holidaymakers are more research savvy and sensitive about ‘quality for money’ than ever before. When they spend their hard-earned cash, consumers want confidence and reassurance that what they are getting is the quality they expect. Some (59% of UK respondents, according to Mintel) believe it’s worth paying more for products of a higher quality. But what do we mean by higher quality?
Kuoni offers a great example of the quality perspective of value. The brand’s Far East collection features curated holidays to far-flung destinations that can pose challenges to travellers trying to go it alone. Taking Kuoni’s Thailand tours as a case in point, the brand offers premium destinations and accommodations at an accessible price point while incorporating personal wellbeing and sustainability initiatives to provide a rich array of cultural experiences, from learning Thai massage to aerial yoga.
Travel brands can showcase their offerings to consumers in various ways. You could highlight what distinguishes your services, such as tailor-made itineraries, personalised customer support, or added benefits. For those offering cruises, tours, or expeditions, creating visual assets can help consumers envision themselves enjoying the quality experience, while illustrating its value for money.
Convenience
We all have a limited amount of time. Consumers want brands to help them easily navigate their fast-paced lifestyles with greater flexibility. Products and services that simplify life offer consumers immense value by saving time and effort.
Source: www.kayakomat.com
Take the case of the Swedish outdoor brand Point 65. In seeking to offer customers greater convenience, the brand introduced KAYAKOMAT, a self-serve kayak rental service. By visiting one of 200 automated, self-serve outlets throughout Europe and North America, customers can book a kayak or stand-up paddle board just as you might order food with a virtual restaurant menu. Before the rental period starts, customers receive a text message with a slot number and a code to unlock the compartment containing the gear they need. By making the rental process more streamlined and user-orientated, the brand makes it easy for planners and passers-by to engage with them and become happy customers.
Does your brand make life easier for customers at all stages of their journey? Look for opportunities to streamline the manual process of finding information about your offerings and booking with you. In addition, your messaging can highlight any timesaving services you offer, helping to position your brand as a company that truly understands and cares for your customers’ needs.
Premium
Simply put, premium is about upgrades. The decision to upgrade is about trading up for exclusivity and being part of the in-crowd. While not all consumers go premium, Mintel reports that 36% of UK consumers do. The key thing to remember is that consumers tend to pay for premiums only in the categories most matter to them. Fortunately, travel is one of those categories for a great many people.
Source: www.blacktomato.com
Black Tomato is known for providing luxury holidays and unique travel experiences, but they even go a step further with The Rider. This service allows travellers to hyper-personalise their holidays by making special requests. For a fitness-conscious couple, it might be access to private gym equipment at their holiday villa. For a friend group with a taste for a particular brand of bourbon, Black Tomato will arrange a bottle to welcome them in every hotel room they book.
For premium value, brands must showcase exclusive VIP experiences that tap into consumers' emotions, such as the desire to feel special or be part of the in-crowd. Rather than promoting a luxury holiday with an e-blast to your entire customer database, consider targeting a select segment with handwritten invitations. Ultimately, the idea is to inspire consumers that it's worth paying a little extra to live their version of the high life.
(Enter) the value matrix
Here at Accord, we like to conceptualise the four perspectives of value in a matrix graphic originally developed by Mintel.
Once you know where your brand stands, you can develop marketing and messaging strategies that highlight your strengths and consistently deliver value to your customers.
What kind of value do you want to offer?
It’s entirely plausible that your brand occupies one section of the value matrix, and you’d like to see it go elsewhere. Thankfully, none of this is set in stone. Here at Accord Marketing, our Strategy team has the knowledge and expertise to help you position (or reposition) your brand and set it up for sustainable success. If interested, please get in touch with Jasman Ahmad, Strategy Director, at jasman.ahmad@accordmarketng.com.
Jasman Ahmad
Jasman is our Strategy Director and responsible for combining creative thinking with factual and statistical data to plan and solve clients’ biggest challenges.
