Value drivers

The consumer perception of value is increasingly being shaped as price plus customer experience plus purpose. Consumers assess value through their own personal value set, where the purpose of the business and its environmental and societal considerations are balanced against the price they are willing to pay.

The problem many companies face is that they have a limited understanding of how customers derive value and which value drivers matter most. That means companies focus on obvious and rational value drivers at the expense of equally important experiential and psychological drivers.

Key value drivers

Price and Promotion: Value through savings

Experience Loyalty: Value through recognition

Purpose: Value through values

Navigating the year ahead will require executive teams to deliver value to customers like never before. To survive, the table stakes will be better management of costs and smarter pricing. But to also thrive, leaders will need to deliver a different kind of value: social purpose, sustainability and standing for far more than profit. The best brands will be those that know the value of purposeful values."