In this episode, #1 Bestselling Author, Mel Abraham digs a little deeper into the ideation stage of the think up phase of business life. We dig into the concept of value creation. The only way to sell and generate revenue from anything that is commercially viable is to create value in someone else's life. Only then will they be willing to pay for it and you will receive value in return.
Let us drill down into the concept of Value Creation Piece. After generating an idea, evaluating and selecting it, we create value. We can create value in these different levels:
1. Utility Based Value: It can be anything that performs a function to serve a need or purpose. The need might or might not be of high value. This includes all the commodity based products and services.
2. Service Based Value: When we give something more than a product or commodity, there are services, connections and relationships attached to it. This is value creation at a different level because we have attached a product with some level of service.
3. Experience Based Value: When we create experience for our customers, team and for ourselves in the process of delivering a product or service. We should strive in every circumstance to create an environment that is memorable. It should create a connection which is experiential in perspective.
4. Value Based Creation: This is a higher level where businesses really thrive, expand and grow. It is all about how you take your product or service to not only create experience but also to speak the value of your customers and team. It requires the highest level of dedication.
Satisfaction Line
People buy with their emotions and justify with logic. But we should consider something called the satisfaction line. On one side of this line, you are enhancing value and on the other, you are eroding it.
Value Enhancing vs. Value Eroding
Building Your Money Machine