In today's hypercompetitive business landscape, gaining a competitive edge is crucial for survival. One way to do that is by understanding the six types of consumer experience value and harnessing them to create a superior phygital experience. In this article, we'll explore these six types and how you can leverage them to set your business apart from the crowd.
It's not just what you sell, but also the value you share to connect with your audience.
Because copyright matters. How to cite this article: American Institute of Business Experience Design (2023). How to gain a competitive edge by harnessing the six types of consumer experience value. Retrieved [date you accessed the article], from [copy and paste the URL of the article page].
Businesses are constantly striving to deliver exceptional customer experiences that cater to the needs of their target audience. In this article, we will explore the six types of consumer experience values (utility, economic, emotional, ethical, aesthetic, and social connection) and how incorporating a mix of these values from the start of the innovation process can help businesses create a durable competitive advantage.
Why is the consumer experience value crucial for gaining a competitive edge?
Providing a unique and valuable customer experience is crucial for gaining a competitive edge because it helps to create a strong and loyal customer base. In today's market, customers have a wide variety of options to choose from, and they are more likely to stick with a company that provides them with a positive and memorable experience.
By focusing on the consumer experience, businesses can create a strong emotional connection with their customers, which can ultimately lead to repeat business, positive word-of-mouth recommendations, and increased revenue. In addition, a well-designed customer experience can also help to differentiate a business from its competitors. By capturing consumer value types from the perspective of the target audience, businesses can identify the core values that are most important to their customers and use this information to design unique and innovative experiences that set them apart from their competitors. This can create a durable competitive advantage that is difficult for others to replicate, as customers are more likely to choose a business that provides them with a unique and valuable experience over one that does not.
To achieve this, it is important to identify and understand the six core consumer experience values that drive customer behavior and preferences. These values need to be captured from the perspective of the consumer and translated into the company's innovation processes and offerings across both physical and digital channels. In this article, we will explore the six core consumer experience values - utility, economic, emotional, ethical, aesthetic, and social connection - that are essential for creating a successful and memorable customer experience.
1) Consumer utility value
Utility value refers to the usefulness or practicality of a product or service in solving a specific problem or need that customers have. In other words, it's the value that a product or service offers to the customer by fulfilling a particular need or desire. Capturing the utility value from the consumer perspective is crucial for companies to create products and services that solve specific problems and meet customer needs. This approach ensures that the product or service is not just a passing fad, but rather a fundamental part of the consumer's daily life.
Integrating utility value into the design of satisfying customer experiences is a core value that companies should strive for, as it leads to customer loyalty. When customers feel that a product or service is valuable and practical, they are more likely to use it frequently and recommend it to others. This results in increased customer satisfaction and retention, leading to long-term success for the company.
Therefore, capturing utility value is important for companies to create products and services that solve real problems and become an integral part of the customer's daily life. This approach is essential to design satisfying customer experiences and build long-term customer loyalty.
For example, Uber has revolutionized the transportation industry by providing a service that solves a real-world problem for customers - the need to get from one place to another quickly and conveniently. The utility value of Uber's service has made it an integral part of the consumer's daily life, leading to high customer satisfaction and loyalty. Uber's commitment to capturing utility value has also contributed to its success in the market and its reputation as a leading brand in the transportation industry. However, maintaining a positive experience for customers has not been easy due to challenges such as safety concerns and driver treatment. To address these challenges, Uber has implemented measures such as background checks, in-app safety features, and customer support services, demonstrating its commitment to customer experience.
When creating a customer experience, marketers and businesses should ask the following questions:
What problem or pain point does our product solve for our customers and how does it add utility value to their lives?
How can we ensure that our product becomes an essential part of our customers' daily lives by offering them the highest utility value?
Which features or benefits of our product offer the most significant utility value to our customers and how can we enhance them to better serve their needs?
How can we measure and track customer satisfaction and loyalty based on the utility value of our product and ensure that it continues to solve their problems effectively?
How can we continue to improve and enhance the utility value of our product over time to meet changing customer needs and preferences and provide them with an exceptional customer experience?
2) Consumer economic value
Economic value refers to the benefit that a customer receives from a product or service in relation to its cost. It is a measure of how well a product or service meets the needs and wants of the customer, and how much they are willing to pay for it. Economic value is important for companies because it allows them to provide a product or service that is worth the price, and to capture that value from the consumer perspective. When a company focuses on capturing economic value, they are essentially trying to provide a product or service that solves a problem for the customer. This means that they need to understand the needs and wants of their target market, and design a product or service that meets those needs.
Integrating economic value into the design of satisfying customer experiences and customer loyalty is crucial for companies to succeed in today's competitive market. Customers expect to receive value for their money, and they are more likely to remain loyal to a company that consistently delivers economic value. By designing products and services that solve customer problems and deliver economic value, companies can build a strong brand reputation and a loyal customer base. This can ultimately lead to increased profitability and long-term success for the company.
One example of a brand that does well in delivering economic value to its customers is Ikea. Ikea is known for providing affordable furniture and home decor items that are both functional and stylish. They have designed their products to be simple and easy to assemble, which allows them to keep their costs low and pass on the savings to their customers. In addition to offering affordable products, Ikea has also created a unique shopping experience that adds value for their customers. They have set up their stores in a way that encourages customers to explore and discover new products, and they provide a range of services such as home delivery and assembly to make the shopping experience more convenient. By delivering economic value through affordable prices and a unique shopping experience, Ikea has built a loyal customer base that continues to choose their brand for their home furnishing needs. This has allowed them to expand their business globally and become one of the most successful furniture retailers in the world.
Therefore, when creating a customer experience, marketers and businesses should ask the following questions:
How does the price of our products and services impact the overall customer experience we provide, and how can we ensure that our customers perceive the economic value of our offerings?
In what ways can we differentiate our product or service from competitors in terms of the unique economic benefits and value we offer to our customers, and how can we continuously improve upon this value proposition?
How can we consistently monitor and enhance the economic value of our product or service to ensure that it remains relevant and competitive in the market, while also prioritizing the customer experience?
What strategies and channels can we use to effectively communicate the economic value of our product or service to our target market, and how can we ensure that this messaging aligns with the overall customer experience we aim to deliver?
How can we measure and analyze the economic value that our product or service provides to customers, and leverage this data to inform future product or service development and marketing efforts that prioritize the customer experience?
3) Consumer emotional value
Emotional value refers to the emotional connection a consumer has with a product or service. It can be created through different marketing techniques such as branding, storytelling, design, and customer service. Emotional value is an essential aspect for companies to capture from the consumer perspective as it helps them to understand their consumers' emotional needs and preferences. By doing so, companies can offer a product or service that solves the consumer's problem and provides them with an emotional connection.
Integrating emotional value into the design of satisfying customer experiences is crucial for building customer loyalty. When a consumer feels emotionally connected to a brand, they are more likely to continue using their products or services, even if there are other similar options on the market. Emotional value can enhance brand loyalty, which is a key driver for a company's growth and success.
In today's competitive market, where consumers have access to a plethora of options, it's crucial for companies to differentiate themselves and create a unique emotional connection with their target audience. By doing so, they can attract and retain loyal customers who will advocate for their brand and help them grow.
Dollar Shave Club is a subscription-based service that delivers razors and other grooming products to customers. They gained popularity through their humorous YouTube video "Our Blades Are F***ing Great," which poked fun at the traditional razor market and highlighted the convenience and affordability of their service. The video went viral and helped the company gain millions of subscribers.
Therefore, when creating a customer experience, marketers and businesses should ask the following questions:
How can we understand the emotional needs and desires of our target audience, and use that information to create a customer experience that resonates with them emotionally
What design elements and features can we incorporate into our products or services to create a more emotionally engaging and impactful customer experience?
How can we use branding elements such as logos, color schemes, and taglines to enhance the emotional value of our products or services and create a stronger emotional connection with our customers?
How can we personalize the customer experience to better align with our customers' emotional needs and preferences, and create a more meaningful and personalized connection with them?
How can we measure and analyze the emotional impact of our products or services on our customers, and use that information to continuously improve the customer experience and strengthen our emotional connection with our customers?
4) Consumer ethical value
Ethical value refers to a company's commitment to ethical practices and values that benefit society as a whole, rather than solely focusing on profit. It can include fair labor practices, sustainable production methods, charitable giving, and more. By showcasing their ethical values, companies can build a positive brand image and increase customer loyalty. Ethical value is becoming increasingly important as people become more aware of the impact their choices and purchases have on the world. Consumers want to support companies that align with their own values and beliefs, and are willing to pay a premium for products and services that are ethically sourced and produced.
Integrating ethical value into the design of satisfying customer experiences is crucial for companies looking to build long-term customer loyalty. Customers are more likely to remain loyal to a brand that has demonstrated a commitment to ethical practices and values, as they feel a sense of connection and shared values with the company.
Patagonia is a great example of a brand that has successfully integrated ethical value into their business model. They are a clothing company that has made a commitment to sustainable production methods and ethical labor practices. In one of their most notable campaigns, Patagonia released a full-page ad in the New York Times "Don't Buy This Jacket" in 2011. The ad encouraged consumers to think twice before buying new clothes and instead consider repairing or reusing their existing clothing. The ad was a bold move, as it went against the traditional marketing strategy of encouraging people to buy more. However, it aligned with Patagonia's commitment to sustainability and resonated with their environmentally conscious target audience. The ad received a lot of attention and sparked a conversation about consumerism and sustainability. It also helped to solidify Patagonia's reputation as a brand that values ethical practices and values. By putting their values ahead of profit, Patagonia was able to build a loyal customer base that shares their commitment to sustainability.
When creating a customer experience, marketers and businesses should ask the following questions:
How can we ensure that the information we provide to customers about our products or services is aligned with their ethical values and beliefs, and helps them make informed decisions?
In what ways can we incorporate ethical features or benefits into our products or services, to enhance their social responsibility and ethical value for our customers?
What innovative technology or other tools can we use to create a more sustainable and ethical customer experience?
Are there any ethical concerns or challenges in our current business practices that we need to address to improve our ethical value and create a positive brand image for our customers?
How can we continuously monitor and evaluate our ethical practices and customer experiences, to ensure that we are meeting the highest ethical standards and building strong relationships with our customers?
5) Consumer aesthetic value
Aesthetic value is the perception of how visually appealing a product or service is to the consumer. It's an essential aspect of a product's design that can make it more attractive to the customer. Companies that capture the aesthetic value from the consumer perspective can offer products or services that solve their problems in a visually appealing way.
Capturing aesthetic value from the consumer perspective is important for companies because it helps them create a product or service that is more likely to be purchased. By incorporating design, packaging, and other visual elements that appeal to the consumer, companies can attract more customers and increase their sales. When a customer finds a product or service visually appealing, they are more likely to have a positive experience with it. This positive experience can lead to customer loyalty, as customers are more likely to return to a company that offers products or services that are visually appealing and solve their problems.
Muji is an excellent example of a brand that captures aesthetic value from the consumer perspective. Muji is a Japanese company that produces a wide range of products, including household items, clothing, and food. The company's products are designed to be minimalist and functional while still being visually appealing. Muji's focus on simplicity and understated design has resonated with customers who value a more natural and uncluttered lifestyle. The company has also integrated aesthetic value into their customer experience. Muji stores are designed to be simple and visually stunning, with an emphasis on natural materials and clean lines. This attention to detail has helped to create a loyal customer base that appreciates the company's commitment to aesthetic value and simplicity.
Therefore, when creating a customer experience, marketers and businesses should ask the following questions:
What steps can we take to create a visually appealing and immersive experience for our customers?
In what ways can we leverage visual design to alleviate customer pain points and enhance their overall experience with our products/services?
How can we incorporate design elements that not only look good but also improve the functionality and usability of our products/services?
What measures can we put in place to ensure a consistent and cohesive visual design across all customer interactions, thereby creating a seamless and delightful experience?
How can we evaluate the impact of our aesthetic design strategy on the customer experience and continually improve it?
6) Consumer social connection value
Social connection value refers to the degree to which a product or service allows consumers to connect with others in a meaningful way. This value is important for companies to capture from the consumer perspective because it helps them create products that not only solve their problems but also allow them to connect with others who share similar values and interests.
For instance, social media platforms like Facebook, Twitter, and Instagram allow users to connect with friends, family, and people with similar interests. The value of social connection is what keeps users coming back to these platforms, even when they are not actively seeking information or entertainment.
Capturing social connection value is crucial for creating customer experiences that foster loyalty and advocacy. When a product or service fosters a sense of community among its users, they are more likely to feel emotionally invested in the brand and recommend it to others.
One example of a brand that created social connection value to improve customer experience is Lululemon. Lululemon is a popular athletic apparel brand that has created a strong community around its brand by organizing free yoga classes and other fitness events for its customers. By providing these events, Lululemon has created a sense of community among its customers who share a passion for fitness and healthy living. The strong benefit of this social connection value is that it has fostered a loyal and engaged customer base that not only purchases Lululemon products but also promotes and advocates for the brand. For instance, loyal customers are likely to attend Lululemon events, invite friends, and share their experiences on social media, thereby increasing brand exposure and driving new customers to the brand.
Sweatlife 2019: How Lululemon's Community Building Efforts Fosters Customer Loyalty
Therefore, when creating a customer experience, marketers and businesses should ask the following questions:
How can we leverage social connection value to enhance the emotional connection customers have with our brand?
What specific features or elements can we incorporate into our product or service to encourage social interaction and foster a sense of community among our customers?
How can we use social connection value to create a more personalized and engaging customer experience?
What type of content or messaging can we use to showcase the social connection value of our brand, and how can we effectively communicate this to our target market?
What are some potential challenges or risks associated with integrating social connection value into our strategy, and how can we mitigate them to ensure a positive customer experience?
In conclusion, it is crucial for CMOs, businesses, and marketers to implement new market research methods such as experiential marketing research methods, to capture the six core values that drive the ultimate customer experience. By doing so, they can create experiences that truly resonate with their customers and set themselves apart from their competitors. This not only enhances brand loyalty but also drives revenue and implements cost-effective strategies. It is imperative to incorporate a mixed dosage of the six consumer experience values from the audience's perspective, across both physical and digital channels. The use of innovative experiential marketing research methods such as ethnographic techniques to analyze phygital data can help businesses achieve this goal, creating a durable competitive advantage that is difficult for competitors to replicate.
Besides capturing the six core values, CMOs and marketers must also develop new knowledge when it comes to experiential marketing and its strategic tool, the 7Es. By gaining a deeper understanding of these concepts, businesses can create experiences that truly connect with their audience and drive business growth. In this regard, we recommend reading our blog "AIBXD Strawberry Experience Blog," a free resource to learn more about the latest trends and insights in experiential marketing, phygital, and customer experience design and strategy. Additionally, we offer executive patented courses to help CMOs and marketers implement successful experiential marketing strategies, creating a sustainable competitive advantage.
Whenever you're ready to get started, we invite you to explore our range of exclusive, certified course programs. Our programs are designed by top-tier experts from industry and academia to equip you with all the necessary tools and strategies to implement successful and cost-effective experience strategies that drive ROI and business growth. Join our elite global community of business experience experts and start your journey towards transforming your business today.
AIBXD offers comprehensive course programs on business experience design, strategy, and management that cater to all levels and profiles. Our portfolio includes our flagship executive program for CMO, CXO, creative designers, and all C-level executives. We also offer diploma programs for entrepreneurs and project/product managers, as well as online course certificates. If you are unsure which program would be the best fit for you, try our fun and easy-to-use AIBXD Course Recommender™. By answering just five quick questions, you can get a personalized course recommendation immediately.
If you're tired of wasting money, resources, and energy on traditional marketing techniques, we can help. Our AIBXD consulting and market research services can assist businesses in starting the experience and phygital transformation. Feel free to check them out and see how we can help you optimize your marketing strategy.
Cite this article as: American Institute of Business Experience Design (2023). How to gain a competitive edge by harnessing the six types of consumer experience value. Retrieved [date you accessed the article], from [copy and paste the URL of the article page].