The Elements of Value

The Elements of Value (Eric Almquist, John Senior, and Nicolas Bloch, Harvard Business Review and Bain & Company):

The Elements of Values answers the marketing question of what consumers care about in a product and what their hierarchy of needs are. The piece presents a solution by describing a list of the 30 “elements of value”. These elements fall into 4 categories of consumer need- functional, emotional, life changing and social impact in order of the level of importance listed. Strategic combination of these elements of value are what drives a company to customer loyalty and success. However, the article recognizes that it would be grossly unrealistic to achieve all 30 elements of value into a single product and states that even the highest of performers like Apple only achieve 11 out of 30 elements. The piece makes the following statements regarding the elements of value: 

• Some elements do matter more than others. For example, all products must achieve high levels of perceived quality to achieve success. Elements such as these are quintessential across the board. 

• Consumers perceive digital firms as offering more value typically because of their convenience and high reach. 

• The highest commercial potential lies in developing new types of value to provide to a consumer. 

The article concludes by discussing how customer-centric design is the best way to meet customer needs and address the elements of value. It poses a case study of a financial services organization which prototypes new digital integrations with real customers to understand if needs are being addressed. In summary, a firm's ability to cater to a customer's needs and elements of value will be the drivers of future success, loyalty and growth.