You’ve probably heard or are familiar with Maslow Hierarchy of Needs, a popular theory in psychology that divides human needs into five different tiers.
From the most basic needs (think: air, food, shelter) to self-actualization (think: the desire “to become everything one is capable of becoming”), Maslow’s model gives light to how specific needs can motivate human behavior.
So, how does it relate to your business, customers and sustained revenue model?
When customers evaluate any product or service they typically weigh the perceived value against their need and then, your asking price.
The more valuable your product or service is, the greater your customer loyalty and the amount they are willing to spend will be. Take a look at The Elements of Value Pyramid, below. Similar to Maslow’s model, this pyramid addresses four kinds of needs: functional, emotional life changing, and social impact.
To put it simply, the higher your product or service is on the pyramid, the more valuable your business is perceived to be.
According to The Elements of Value, “to be able to deliver on the higher-order elements, a company must provide at least some of the functional elements required by a particular product category.”
Use this model to understand where your business or service is located on the pyramid. Then, develop a strategy that can incorporate more elements to achieve revenue growth and increased customer loyalty.