Consumers evaluate products or services based on price...

and perceived value.

Companies tend to focus on price. It's easier to understand and manage.

Value is harder to define or measure.

Yet knowing what consumers value is critical when it comes to improving offerings... or creating new ones.

So what do consumers value?

Bain research has identified 30 Elements of ValueSM.

They fall into four categories...

with roots in Abraham Maslow’s hierarchy of needs.

The most basic needs are functional.

Consumers also value products that meet their emotional needs.

Some products have value because they are life changing...

and some even change the world.

The more elements companies deliver, the higher their loyalty and revenues soar.

Understanding this can help companies improve their offerings, create new ones...

...or identify gaps that competitors might try to exploit.

  • Self-transcendence
  • Wellness
  • Simplifies
  • Attractiveness
  • Provides hope
  • Design / aestheics
  • Fun / entertainment

Explore the Elements of ValueSM

Informs

Definition: Providing reliable and trusted information about a topic

Example: Vanguard added low-fee advice to its core investment services.

Sensory appeal

Definition: Appealing in taste, smell, hearing and other senses.

Example: Starbucks acquired tea company Teavana and bakery La Boulange to improve its non-coffee products.

Variety

Definition: Providing a variety of things to choose from

Example: Fitbit has branched out from a simple step counter to different products for everyday users and high-performance athletes.

Quality

Definition: Providing high-quality goods or services

Example: USAA delivers high-quality insurance, banking and investment products and services tailored to its members―those who have served in the military and their families.

Reduces cost

Definition: Saving money in purchases, fees or subscriptions

Example: Nordstrom, J. Crew and other retailers introduced budget brands.

Avoids hassles

Definition: Avoiding or reducing hassles

Example: Zappos offers free shipping and generous return policies.

Reduces effort

Definition: Getting things done with less effort

Example: Facebook added the ability to send money directly to friends via its Messenger app.

Connects

Definition: Connecting with other people

Example: Energy drink maker Red Bull sponsors extreme sports competitions and communities that connect enthusiasts around the world.

Integrates

Definition: Integrating different aspects of life

Example: Square offers invoice management, payroll and other services that integrate billing functions into its point-of-sale hardware and software.

Organizes

Definition: Becoming more organized

Example: The Container Store helps people organize their possessions at home.

Reduces risk

Definition: Protecting from losses

Example: Charles Schwab's Accountability Guarantee refunds fees if clients are not fully satisfied with the investment product.

Makes money

Definition: Helping to make money

Example: Google's AdSense helps independent blogs and websites to generate advertising revenue.

Simplifies

Definition: Reducing complexity and simplifying

Example: Amazon's 1-Click feature simplifies the order checkout process.

Saves times

Definition: Saving time in tasks or transactions

Example: Target, REI and other retailers have in-store pickup for online orders and/or same-day rush delivery from store.

Provides access

Definition: Providing access to information, goods, services or other valuable items

Example: CVS Health added in-pharmacy clinics that provide basic medical services and assorted wellness services.

Attractiveness

Definition: Helping people feel more attractive

Example: Victoria's Secret created bold retail designs in an undergarment industry that had been quiet and discreet.

Fun / entertainment

Definition: Offering fun or entertainment

Example: Norwegian, Royal Caribbean and other cruise lines offer almost round-the-clock entertainment ranging from indoor sky diving to bumper cars to art auctions.

Therapeutic value

Definition: Providing therapeutic value or well-being

Example: Dr. Scholl's products aim to soothe a broad range of foot conditions.

Wellness

Definition: Improving people's physical or mental state

Example: Westin added fitness equipment in some guest rooms, "superfoods," and exercise clothing rentals to reposition the brand as part of the well-being movement.

Badge value

Definition: Representing achieved status or aspirations

Example: Prada's understated luxury clothing and accessories are designed to be recognized by fashionistas.

Design / aesthetics

Definition: Providing an appealing form or design

Example: Apple's attention to design has helped differentiate its computers, smartphones and other products from those of competitors.

Nostalgia

Definition: Reminding people of something positive in the past

Example: Volkswagen's Beetle line of cars emulates the popular design originally created in the 1930s and produced through the 1970s.

Rewards me

Definition: Providing benefits for being a loyal customer

Example: Starwood has earned strong customer loyalty among frequent travelers through a robust rewards program.

Reduces anxiety

Definition: Helping people worry less and feel more secure

Example: Discover allows cardholders to instantly freeze and unfreeze their accounts without canceling their cards.

Affiliation and belonging

Definition: Helping people become part of a group or identify with people they admire

Example: The Boston Red Sox have built a loyal customer base by appealing to tradition and local patriotism in New England.

Heirloom

Definition: A good investment for future generations

Example: Patek Philippe positions its watches as cherished possessions designed to last and accompany successive generations.

Motivation

Definition: Spurring people to achieve their goals

Example: Spotify added a music-streaming feature for runners that detects their tempo and finds music to match it.

Self-actualization

Definition: Providing a sense of personal accomplishment or improvement

Example: Consumers buy a Leica camera in part from the pride of owning a camera used by famous photographers over the course of the brand's century-long history.

Provides hope

Definition: Providing something to be optimistic about

Example: GNC stores sell a wide range of weight loss, nutritional supplements and other products designed to improve consumers' health and fitness.

Self-transcendence

Definition: Helping other people or society more broadly

Example: When TOMS sells a pair of shoes or eyewear, a new pair of shoes goes to an impoverished child or part of the profit goes to save the eyesight of people in developing countries.

?The rankings of the elements' importance by industry derive from Bain's survey of more than 8.000 consumers about their perceptions of nearly 50 US-based companies. Survey questions are proprietary to Bain for exclusive use with clients. The definitions are not the actual attributes used in the survey.

What elements are most important to consumers in different industries?

Click on each industry below to view the top five elements influencing loyalty for each.

Reset

Five most important elements in the apparel industry:

  1. Quality
  2. Variety
  3. Avoids hassles
  4. Design / aesthetics
  5. Saves time

Five most important elements in the discount retail industry:

  1. Quality
  2. Variety
  3. Reduces cost
  4. Saves time
  5. Rewards me

Five most important elements in the grocery industry:

  1. Quality
  2. Variety
  3. Reduces cost
  4. Saves time
  5. Rewards me

Five most important elements in the food and beverages industry:

  1. Quality
  2. Sensory appeal
  3. Variety
  4. Design / aesthetics
  5. Therapeutic value

Five most important elements in the smartphone industry:

  1. Quality
  2. Reduces effort
  3. Variety
  4. Organizes
  5. Connects

Five most important elements in the TV service provider industry:

  1. Quality
  2. Variety
  3. Reduces cost
  4. Design / aesthetics
  5. Fun / entertainment

Five most important elements in the consumer banking industry:

  1. Quality
  2. Provides access
  3. Heirloom
  4. Avoids hassles
  5. Reduces anxiety

Five most important elements in the brokerage industry:

  1. Quality
  2. Makes money
  3. Heirloom
  4. Variety
  5. Provides access

Five most important elements in the auto insurance industry:

  1. Quality
  2. Reduces anxiety
  3. Reduces cost
  4. Provides access
  5. Variety

Five most important elements in the credit card industry:

  1. Quality
  2. Rewards me
  3. Heirloom
  4. Avoids hassles
  5. Provides access
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