What truly is value? Value is the calculation of an individual’s perceived value against the asking price of the service or product. This simple calculation is then used to evaluate the offering which inturn informs a decision.
The calculation of value can only be decided by the individual. We have all experienced the world in slightly different ways and so view it differently. With this, it means that each person’s calculation varies and so the value of the same service can differ massively between consumers. For this reason, understanding the value of your service can be psychologically complicated.
Eric Almquist, John Senior and Nicolas Bloch identified that services deliver fundamental elements of value that address four key areas of need. These are functional, emotional, life changing and social impacts.
Functional Value
Functional value relates to what the service does, and how it helps the consumer. In the dental industry, it would look at the cost, quality, convenience and duration of the treatment plan in question.
This is the key element of value and is the building block for the rest of the decisions made down the line. As a result of this, you need to ensure that you consider the basic details of your offering, and price your services accordingly to avoid losing potential clients at the first hurdle.
Emotional Value
Emotional value is exactly what it says on the tin – how does it make the patient feel? Will it make them feel happier in themselves and more confident?
The more that the patient sees the emotional value in dental , the higher their calculation of value rises which is the key for selling more high value treatments (HVT’s).
Life Changing Value
In my opinion, life changing value is one of the key factors within the dental industry. It is likely that a patient has gone a long period of time, and in some instances their entire life, with teeth that they aren’t happy with. Due to this, the life changing value can be very high and so it is important that the service delivery is up to standard to meet this.
Social Impact Value
The social impact value is often shown as the self-transcendence section, meaning that patients come to the realisation that the value of the service on offer is undeniable and so have to act accordingly by proceeding with the purchase.
It is believed that people are unable to attain this need, without having met those detailed within the previous 3 values.
What does this mean?
The overriding moral to this blog is to remind you that the more elements of value provided within your service offering, the greater patient loyalty you gain, and, in turn, the higher your revenue increases.
If you require further help in identifying the value in your business, or to develop revenue growth, get in touch now.
