3 types of product value make users more willing to buy your product

Many people may think: What value can a product reflect? Isn’t it just about what use this product has for users? However, with the consumption upgrade that everyone often talks about now (actually it is demand upgrade, which is more accurate), the value that people expect from a product is not just to meet the basic functional effects, but also to meet more value.

For example: When many of us go out for a meal now, we don’t just want to be full, but more importantly, we want to see whether the meal makes us or our friends enjoy it - behind this enjoyment lies different values, such as the value of social interaction.

When buying a pair of sneakers, it is not just about durability. It is also about the value proposition behind the brand. For example, Nike’s “Just do it” advocates a spirit of daring to take risks and act.

Buying a mobile phone is not just about making calls and surfing the Internet, but also about other psychological needs that this phone brings. For example, buying an iPhone X or a Huawei phone is not just about its usability, but some people also buy it because of the sense of honor and identity that this phone brings.

Therefore, today’s consumers buy a product not just because the product meets a certain basic value, but also because of the other product values ​​behind the product.

Different people have different interpretations and opinions about product value. But from the perspective of user value perception, I personally agree that the products summarized by the founder of Yunhaixiang have the following three values:

1. Basic value: The most basic use value of the product, satisfying people’s most essential desires.
2. Functional value: meet people’s rational needs in terms of health, safety, etc.
3. Spiritual value: satisfying people’s pursuit and yearning for certain emotions or spiritual things.

(Some “professionals” may express it differently, but the principles are the same and you can understand it.)

For example: going to a restaurant to eat can satisfy our basic value - being full; we also need to consider whether it is healthy and good to eat - functional value; now it has risen to the level of whether it can bring us spiritual satisfaction - socializing, a good experience and other needs.

This is also one of the reasons why it is said to be demand upgrading rather than consumption upgrading, because people's needs are constantly upgrading with various changes, but the consumption environment does not seem to be upgrading as imagined, and consumer behavior choices are not as decided as we imagined - as media and communication channels become more decentralized, product information is becoming easier to obtain and transparent, and consumers' decision-making costs are getting higher and higher (more choices), resulting in consumers not being so easy to pay.

Therefore, your product cannot be limited to satisfying a certain value of the user, but must also provide different values ​​based on user needs.

Let me tell you in detail about the three major value layers of products, so that you can make more accurate value choices for your products and let consumers give priority to your products.

1. Basic functions

The most basic use value of a product is to satisfy people’s most essential desires. This is our most common product value, and it is also the level that many people achieve when making products.

For example: As I said before, our most basic need when we go out to eat is to be full, which requires our products to meet such basic values. For example, the most basic value of a mobile phone is communication functions such as making calls and sending messages.

Since this is a fundamental value, does your product need to emphasize this value to users?

This can be chosen from two dimensions:

(1) The development cycle of the industry in which the product is located

If the industry to which your product belongs is in its early stages of development and has not yet been widely recognized by the market and users, the first thing you need to explain and emphasize should be the basic value of your product.

For example, blockchain. When I was working in Beijing, I saw many people making some DAPP (blockchain application) products and explaining many great visions to investors or users. But users and investors were confused when they heard this - we don’t even have basic knowledge about this product, and many people need to know what this product is used for.

Because many people have a cognitive barrier to blockchain - they have heard of it but don’t understand what it is used for (many people still have the wrong perception that Bitcoin is blockchain).

Therefore, for products like this, since the industry itself has not yet solved the problem of basic cognition, it is best to emphasize the basic functions of the product in the early stages of product promotion.

(2) Brand awareness in the category

Another situation is that the brand is not well-known in this category, and if your product suddenly emphasizes great spiritual appeals, it will be difficult for most products to achieve the corresponding effect. Because not all products can build up their popularity and brand right from the start like Luckin Coffee.

For example, I passed by a store some time ago, and it seemed to be called "Flying Snow". When I saw this name, I was confused. Looking at their product names and value propositions, such as "Dragon Head" and "Flying in the Snow", and the slogan "Make You Extraordinary"... I am even more confused.

Later, after looking at the product graphics, I realized that this was a store selling ice cream and drinks (many users don’t understand it and usually choose to ignore it, causing your product to miss a lot of sales opportunities).

Why do I feel this way?

Because their products or brands are not as well-known as Mixue Bingcheng and Heytea (when I see "Heytea", at least I know it is a tea product).

The first thing users need to understand is the basic information about the product - what it is, what it does, etc.

The above is a thinking dimension provided by the author. You can also think about whether your product needs to emphasize the basic value of the product from different dimensions. But remember not to blindly imitate the value proposition of big brands because their brand awareness is different from yours.

2. Functional value

According to Maslow's need theory, in addition to satisfying basic needs such as survival (being full) and physiological needs, people also need to satisfy functional needs such as health and safety.

For example, in the restaurant example mentioned earlier, when we eat out, we don’t just want to fill our stomachs, we also consider whether the products provided by the restaurant are hygienic, safe, and healthy. Behind this is people's fear of death and their natural need for self-safety.

So under what circumstances should you emphasize the functional value of your product?

You can also use the “basic value” method mentioned above to make an assessment and choose the general direction of the product value proposition.

For example, when it comes to the medical beauty industry, many consumers are still at the stage of functional risk regarding this industry - many people are worried about whether there are hidden consumption issues in a certain beauty salon, whether the technology is safe and reliable, etc. Then we need to think about the product’s value proposition from the functional aspects such as safety, health, and user trust.

Another situation is to look at the attributes of the industry itself.

For example: financial management products. Due to the negative news in the early stage - "the boss of xx platform absconded with the money", many users' concerns about this type of product are safety and reliability, and then the issue of the level of returns.

Therefore, the advertising slogans (value propositions) of many financial products are often marked with "Tencent/Ali C Round Financing Platform" etc., to increase trust endorsement and reduce users' decision-making costs.

Therefore, whether to adopt functional value as the value proposition or selling point of your product depends on dimensions such as the cognitive stage of development of the industry to which the product belongs and its own attributes.

3. Spiritual Value

Satisfying people's emotional or spiritual pursuits and beautiful aspirations, this kind of product value is now often seen, and will become more and more common.

For example, Nike’s “Just do it”, China’s Li Ning sports brand’s recent slogan “Make change happen” and Apple’s “think different” and “Change everything again” all express a certain spiritual appeal of the product or brand, and make it easier for users who recognize the spiritual appeal to make a purchase.

Many people may also want to emphasize this value proposition. However, if you want to increase sales or attract users by relying on this kind of product value proposition, you still need to rely on solid product basics and functional value as a foundation.

For example: your restaurant wants to provide a social venue for high-end people, but the products, environmental decoration and services do not match. Simply shouting out the concept of "third space" will not attract the corresponding user groups or the user repurchase retention rate will not be high.

However, as user needs continue to upgrade, users will increasingly prefer products with "spiritual value" in the future. For example: a restaurant is not just about eating and filling your stomach, it is also about socializing and satisfying users’ spiritual needs for self-realization.

If your product meets such conditions, you should choose the direction of product value proposition based on the user's psychological needs. For example, the catering project we serve emphasizes the value proposition of "the best choice for gatherings of friends and family", which is also based on the characteristics of users in nearby business districts.

Summarize

In this article, the author provides you with three types of product values: basic value, functional value and spiritual value. It helps you understand that a product is not simply useful to users, but also whether it meets users’ spiritual needs. This helps you achieve differentiated operations and make your products more in line with user needs.

What kind of value does your product provide to users?

Source: Mr. Monster (ID: Mister-shou)