One of our main concerns that we marketers have is the value equation of our consumer. The reason is very simple, when this equation is positive for our customers, they will feel more satisfied with their purchase and will repeat this or recommend our products. Thanks to this, we will be able to achieve the objectives of our marketing plans: Increase in sales, better positioning, greater market share, etc …

The value equation:

X – Y> 0
X: Total experience that the consumer receives.

Y: Total cost that the consumer faces.

X = (Total Experience): It is everything that the consumer receives during their shopping experience, which ranges from the product selection process, through the purchase of the same to the after-sales service.

This is the easiest part of the equation to solve, because it is the part that we can plan, direct and control. As we will create more channels for the consumer to acquire our product, we can improve the environment in which we provide the service, the exposure of the products, the quality of service and even a CRM to optimize the monitoring of our client portfolio.

Y = (Total Cost): It is everything that the consumer leaves aside to acquire the shopping experience, the economic cost, opportunity cost (what a person stops receiving to obtain something that interests them) is also the emotional cost sometimes more important to the consumer than the first two. This is why we must be clear about the “real insights of our clients”.

A very simple equation, it seems, however it is very complex when structuring it, because it is necessary to have a very clear definition of each of these variables for each segment of our clients.

Bottom Line: All of our planning, directing, and monitoring work for the year is geared toward this equation. That is why, all the time we must be optimizing the variables that affect our consumer and it is really necessary that we concentrate all our efforts on generating value in this equation, because the greater result will give us more chances of having loyal and happy customers.

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