This informal CPD article ‘The Foundation of Value Based Marketing’ was provided by Alt Marketing School, a modern marketing school for marketers who want to do marketing differently and advance their career along the way.
Value-based marketing has been more and more part of our recommended LinkedIn reads in recent days, and with good reason. Imagine walking into a shop where the staff knows not just your name, but what makes you tick, offering exactly what you need in a way that aligns with how you see the world.
That’s the essence of it — marketing that prioritises customers' values and needs over just selling stuff. It’s like that shopkeeper who knows every customer by heart, but in the digital age, where subscribers and likes are the new currency.
This kind of marketing taps into what really matters to folks, making sure the products and messages hit home. It's not just about bombarding potential buyers with ads. In fact, it’s about genuine connections, understanding them on a level deeper than ever before. In a world cluttered with endless choices, value-based marketing aims to cut through the noise, building trust and loyalty by showing customers that brands get what’s important to them.
Defining Value-Based Marketing
So, what is the deal with value-based marketing? If you strip it down to the nuts and bolts, it is a strategy that focuses on aligning a brand’s core values with customer needs and values. It's like saying, “Hey, we’re not just here to sell you something. We’re here to make your life better because what’s important to you is important to us.” It leverages marketing campaigns that resonate on a personal level, improving conversion rates because customers feel seen and understood.
This approach goes beyond the standard pitch-and-sell. By incorporating user-generated content, it wraps the brand story around real-life experiences of loyal customers, boosting customer satisfaction and brand loyalty. Plus, it opens the door to deeper emotional connections, making folks not just buyers but part of a community that shares the same values. Imagine marketing that doesn’t feel like marketing — that’s the sweet spot value-based marketing aims to hit.
The Importance in Today's Market
In the hustle and bustle of today’s market, where energy costs are soaring and everybody’s got something to sell, standing out is tougher than a yellow flamingo in a sea of pink. That’s where value-based business practices shine. They’re like a beacon, guiding potential clients through the fog of endless sales pitches towards something genuine. This approach humanises brands, transforming transactions into relationships and customers into advocates.
Why? Because today’s savvy shoppers sniff out authenticity like a hound. 56 percent1 of customers are more loyal to brands that align with their values, or “get them.”
Nowadays, we crave connections that go beyond the buy-now button, seeking brands that mirror their values and contribute to their world. A value-based business doesn’t just aim for the wallet. It aims for the heart, crafting messages that resonate personally, making buying decisions easier and more meaningful. In a crowded marketplace, that’s a game-changer.
The Influence of Values on Consumer Behaviour
Now, let’s look at values and consumer behaviour. Two shops sell the same sneakers, but one donates part of the proceeds to re-wilding forests in South America. Let's say you are an experienced hiker, who loves the outdoors and has spent a whole summer exploring Ecuador and is passionate about the environment.
When you are looking for a new pair of shoes, which one jumps out at you? The one that’s got its values on its sleeve, for sure.
This is essence of how values sway consumer loyalties. Customers lean towards brands that walk the talk, aligning their purchases with their beliefs. And it shows return custom too, as 64 percent2 of customers with a brand relationship claim aligned values as the reason for coming back.
Value alignment fosters a strong bond, making customers more than buyers as they become part of a shared mission. This shift towards value-driven decisions is flipping the old marketing playbook on its head, pushing brands to rethink how they connect and communicate.
The Role of Core Values in Branding
Chatting about core values in branding is like discussing the secret sauce behind your grandma’s legendary stew. Brand values are the heart and soul of a company, the principles guiding every decision, campaign, and interaction with customers.
They're what set a brand apart in a sea of sameness, as, it turns casual browsers into followers. Think about it. When existing customers see a brand consistently living out its values, they don’t just stick around; they become vocal advocates, spreading the word faster than wildfire. This transformation from customer to champion is the magic of effective branding, cementing a business in the hearts and minds of its audience like a trusted friend.
Three Questions to Identify Core Values
These are the guiding principles that a company holds dear, they're not just fancy words slapped on a website. If you are looking to identify three values to get started, these three prompts.
What's the Bread and Butter?
Think about what drives your business each day. If your company were a person at a party, what five words would they use to describe themselves? This isn't about surface-level perks or what you think might sell; it’s about the gut-level stuff that gets you up in the morning. What fundamental beliefs or principles do you absolutely not compromise on, no matter what?
Where Does the Rubber Meet the Road?
Consider the decisions you’ve made
that felt right, even when they were hard. Can you identify a pattern or a
recurring theme in these decisions? This is about connecting the dots between
what you say you stand for and what you actually do. For instance, if claiming ‘sustainability’
means
you’ve passed up cheaper, non-eco-friendly solutions, you're
starting to see the outline of your core values in action.
Who Sings Your Praises?
Listen to the stories your most loyal
customers tell about you. What aspects of your business do they highlight when
they recommend you to others? Often, your customers will perceive and celebrate
your core values even before you pin them down yourself. This feedback is like
gold dust, revealing the true impact of your core values on those who interact
with your brand.