Value is the New Black

DEAL is no longer a bad four letter word. It’s a badge.

One of the things that struck me when recently listening to a podcast was the premise that ‘value was the new black’.  Today’s economy is forcing both brands and consumers towards a ‘value’ model.

Consumers are expecting more value.  According to the 2009 Brand Keys Customer Loyalty Index, successful brands are those that stand out because consumers think of them as valuable.  They don’t see the term value as a synonym for “cheap.” One of the key findings of the Index is that consumer expectations regarding brand value increased 20% this year versus 2008.

Brandkeys analyzed the likely consumer values, needs and expectations for the next 12-18 months and offered the following trends:

Value is the new black: Consumer spending, even on sale items, will continue to be replaced by a reason-to-buy at all. This may spell trouble for brands with no authentic meaning, whether high-end or low.

Brand differentiation is brand value: The unique meaning of a brand will increase in importance as generic features continue to propagate in the brand landscape. Awareness as a meaningful market force has long been obsolete, and differentiation will be critical for sales and profitability.

Consumer expectations are growing: Brands are barely keeping up with consumer expectations now. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. Smarter marketers will identify and capitalize on unmet expectations. Those brands that understand where the strongest expectations exist will be the brands that survive and prosper.

It’s not just buzz: Conversation and community is increasingly important, and if consumers trust the community, they will extend trust to the brand. This means not just word of mouth, but the right word of mouth within the community. This has significant implications for future of customer service.

Consumers talk with each other before talking with brands: Social networking and exchange of information outside of the brand space will increase. This – at least in theory – will mean more opportunities for brands to get involved in these spaces and meet customers where they are.

One of the easiest ways you can add value to your offering is by creating a ‘purple goldfish’ or marketing lagniappe.