How do you define value? Can you measure it? What are your products and services actually worth to customers? Remarkably, few businesses are able to answer those questions. And yet the ability to pinpoint the value of a product or service for one’s customer has never been more important.
It is also important to note ‘value’ is not always just low prices. Owners & operators often get into this mindset that price is the only characteristic that drives customers.
News flash: it’s not.
In fact, a 2017 Technomic study finds that price may not even be the most important component. Consumers were asked to rate dozens of attributes, including those specifically related to value, on how important they are to the decision of where to dine out. Figures show the percentage of people who said the attribute is very important. To the left are the fast-casual and quick-service chains, respectively, that rate highest in each attribute, according to their customers.
What does this mean to you?
First of all, quality ingredients matter. Customers are now, more than ever, well-informed about where and how ingredients are sourced. We talk more about this in one of our previous articles, ‘Fresh & Local Food Matters: Why Restaurants Are Changing.’ Definitely check it out and learn how the industry and big players are changing to fresh.
Surprisingly, portion size came above price. Customers are willing to pay more for better ingredients, but they want to be satisfied when they leave, which makes sense, especially for fast casual and quick service restaurants. If you pay $14 for a burger, it should not be a micro-burger that you can eat in one bite.
One topic we did want to point out was the category about ambiance. Last month, we wrote about a new app that measures noise levels in restaurants. Users can then comment about the establishment and leave actual decibel data. Think of it as Yelp, but for ear-friendly conscious customers. Providing an enjoyable environment is number six on the list, and although it may not occupy the top-spot, managers should be cognizant of the importance. This could be an easy check on the list that your restaurant is missing out on. To learn more about it, check out the article, ‘Restaurant Too Noisy? This App Will Tell You.’
Now that you know how customers process ‘value,’ what are you going to do to meet their expectations?