You Don't Measure What You Offer Your Customers
Though it is the most important metric
What's the difference between a $4 wine glass and a $40 one? Does the same wine taste better in the latter?
Is a luxury car ten times better than one that is ten times cheaper?
We all know that businesses should create value for customers to earn profit. And you are, for sure, also familiar with the "value for money" concept. If you want to ask for more money, offer more value.
But what is "value," and how to measure it?
Wine glasses and value
Imagine a person choosing wine glasses. How does she do it?
First, she realizes that she needs them. Maybe she's just bought a new flat, or her husband has broken the last glass in the house. She goes to a store and sees a lot of different glasses on the shelves. Which one will she buy?
The answer is obvious – the one that, she believes, will bring the most value to her. She may be proud of her frugality if she buys the $4 one. On the other hand, if she opts for the $40 one, she may expect her guests to apprecia…