Hello, thanks for reading “Living on the Grid” series This is the third in a series of 2×2 grids to help explain or demonstrate concepts from the world of business..
In this edition, I wanted to look at time spent and the perceived value. In numerous conversations around value or an experience with various experience stagers and business consultants, a common idea kept emerging from these discussion. The idea of price versus value from the time a customer spends with a business.
In the diagram below, I wanted to explore the the various possibilities between the time a customer spends engaged with a a business and the price that is paid for that interaction to better visualize the difference from a good value versus a commoditized offering.
In the vertical axis, I identify price as on key attribute. The range of pricing is low to high. Let me be clear, its not underpriced or overpriced, merely the lever of pricing a customer pays. Along the horizontal axis lies time. How long is the interaction or engagement with a customer, but not how long a customer must wait to engage, only the time during engagement is being viewed.
As you may noticed, time/price can help establish the possible value being created in the eyes of the customer. If the offering is about convenience and time well saved, then it is possible that your offering is commoditized and battles for price. In comparison, if the time spent is of good quality and the value equals the price, then you’ve created a good value.
Caution arises when you believe your offering is worth more than what the customer perceives. Maybe the time is to short or not impactful enough, thus creating an offering that is seen as being over-priced. On the other hand, a business may find it can’t keep up with the demands and that there are not enough resources to maintain the level of expectations or the business actually provides greater value then priced and thus becomes under-priced in the market.
You must find a balance between price and time in order to be seen as a value worthy of the time and price paid. Be aware that time is as important resource and money when it comes to an experience offering.
If you enjoy this article or this series concept, please leave me a comment. I’d love to hear your feedback and possible ideas for upcoming 2×2 grids.
Until next we chat, this is Living on the Grid.