This infographic from Vouchercloud deals with something every merchant needs to wonder about.
It begins to explore the perception of value by looking at how different types of food and music underwent changes in the way customers value and pay for these items. For example, lobster was once 300 percent cheaper than baked beans, and considered a cheap foodstuff fit only for consumption by lowly prisoners and cats. By the end of the 20th century it was seen as a luxury item with a continually rising price. Similarly, 20 years ago, music albums typically contained a dozen songs a piece and were sold as an integral unit. Now, songs are bought piecemeal.
The reason both music and lobster are sold differently today is because technology and the supply and demand of the market changed how those products are valued by customers who purchase them.
Enter your business. Technology and distribution changed the way customers perceive the value of software, and the way they use and buy it (think cloud products and subscription billing).
The infographic concludes by naming five important ways businesses can change their customers’ perceptions, increase their value, prices, and ultimately, their revenue. As Charlie Gilkey notes, “People don’t buy products because of the actual value of the products – they buy stuff because the price of the product closely matches their perceived value of the product.”
