Value has been at the heart of any business.
The value which is created for users. The value could take any shape. It could be saving them time and effort, or solving a problem they’ve been experiencing and didn’t know how to solve, or supporting a cause they care about, being a family member or anything else that gives them a reason to buy from you.
If you have this value for a big problem and it is unique, customers will come to you and be loyal, and you will also have price control too. However, if many startups offer the same value, customers will never become loyal, and you will find yourself in a red ocean of fierce competition.
The value doesn’t always need to be tangible like price, more features, etc. It can be intangible as well. For example, customers of Apple do not buy Apple products just because they are good, but because they share the company’s feelings about challenging the status quo.
When we buy from Tata, it’s not always because of good service or anything visible, but because of our trust in them. They gained this trust after years of service. We believe they will give their all and will always do what is best for the country and society. This is the value they have and no one can match it.
Their tangible actions flow from their intangible thoughts and goals, not the other way around. This is what differentiates them from others.
However, if you run a food delivery service and your core value is a discount, it will be difficult to retain customers. They are with you for the discounts, and if someone else offers a better deal, they will fly there. And you are the only one who gave them this behaviour and how you got them.
This behavior is conflicting with your objectives of profitability, then why to spend millions for this behavior???
The moral of the story is simple: the higher the value and the more difficult it is to replicate, the bigger and more profitable you can become.
