List of Benefits and Costs

 What are some possible benefits and costs when determining customer value?

product design and features create benefits for consumers
product design and features create benefits for consumers

A fundamental concept in successful marketing activities is the offering of value to the firm’s target market/s.

Benefits are delivered through design aspects and product attributes that provide some advantage or positive outcome for the end-consumer. The more benefits perceived by the consumer, the more likely they are to see value in that particular product.

Without consumers perceiving that the product or service will provide them with positive value, they will not trial (an initial purchase) nor will they repeat purchase the product.


In simple terms,
no perceived customer value = no/little new and repeat customers
which equals business failure through the lack of profitability.

buyer decision process and CSat
The interrelationship between the buying decision process and CSat
(Click to enlarge)

 

This concept is simple enough to understand quickly, but you should also look to review what is customer value and how it differs from customer satisfaction? (See the model as a quick guide.)

Further down in this article you will find a list of benefits and costs to further help understand the fundamental marketing concept of customer value.

 Example Benefits

In many cases, it is easy to describe the product’s features, but is often harder to describe and outline its benefits. Therefore, here is a generic list of example benefits that might be helpful in understanding how to frame benefits for consumers.

Convenience Friendly
Time-saving Tailored
Easy-to-use Choice of options
Fun for you Trendy
Attractive Popular
Entertaining Social status/prestige
Educational Belonging
Healthy Simple to understand
Good-for-you Modern
Tasty Innovative
Enjoyable Interesting
Efficient Suitable for all ages
Safe Fun for the whole family
Exciting Great investment
Relaxing Saves you money
Refreshing Caring
Peace-of-mind Sensible
Great savings Trustworthy
Personal service Easy to fix/repair
Durable Comfortable
Works well Fast turnaround

 Example Costs

Price (up front) Unfriendly staff
Price (ongoing charges) Delivery costs
Hard-to-use Installation needed
Detailed information required Need to assemble
Long, awkward process Have to wait in a long queue
Inconvenient Crowded store
Frequent repairs likely Low quality (won’t last long)

Simple Approach to Increasing Customer Value

For some reason, many firms tend to focus mainly upon increasing benefits to consumers in order to gain market share through greater overall value. That is a great approach and should be encouraged (provided it is cost-effective) as it will help build customer loyalty and differentiate offerings.

But… working to reduce costs (beyond just price) also improves the value equation for consumers. Therefore, marketers should consider things like:

  • Simplify the purchase process
  • Make the purchase more convenient
  • Provide more/easier information
  • Assembly services
  • Waiting systems (queue management)
  • Improved customer relationships
  • Improved customer service
  • Warranties/repair options
Related Topics

Understanding customer value

Benefits versus product features

How customers see value