Exploring Value Exchange

A common theme throughout my personal and professional life this year has been the concept of value exchange. The majority of such cases have been relatively nonchalant incidents, however on occasions, there have been incidents involving value exchange where the balance has been heavily one sided, and is embarrassing for the opposite party (usually myself!).

In fact, I can admit now (and I know one or two people who will pull me up on this) that I have been guilty of not thinking about value exchange before engaging in professional situations. And those people know I am sorry.  HOWEVER, asides from learning from my mistakes at a relatively early stage in my career, it has highlighted something which is in fact incredibly relevant to the marketing industry.

The words engagement, conversation, participation and social have been thrown around like some angry Gorillas and their faeces, but what the hell does it all mean?! My personal experiences and understanding always make me return to the concept of value exchange. In order for a citizen to accept and open communication with brands via a platform such as a mobile device, an understanding of the mutual expectations is vital.

Gimme some free stuff…please

Incentivisation is not a revolutionary new marketing technique, and it has a track record throughout the ages of driving conversions and catalysing consumer engagement. Always used to choose a cereal as a kid based on the best free toy? Buy your new TV based on the stockist that offers the best warranty? In offering an incentive, a brand can create what is often an ‘illusion’ of value with its consumer, but this works well in establishing an association with your brand and ‘adding value’. The consumer simply accepts that by buying your product, this is sufficient for an exchange of value. Obviously as a marketer, you will be more aware that alongside a healthy profit on the product, that you will have claimed valuable customer contact details for future sales leads.

Its more than free stuff

Sorry to disappoint, but although incentivisation creates a sense of unbalanced value exchange in favour of the customer, it is in fact very false. True value exchange is a much deeper concept, embedded within our understanding of the world and how we interact with it. The simple concept for brands and marketers to embrace is:

“Do not aim to deliver just the right message, but strive to evoke the correct response”

Consumer insight and market research can offer a remarkable level of understanding of your audience, but telling your audience what they want to hear is not the same as making an emotional connection and seeing a natural will to engage with your brand and its message. This emotional connection can manifest itself in an array of forms, but when the value exchange is optimised, the rewards for both parties will be evident.

Remember, its a telephone, not a megaphone!

Evoking the right response may not be immediate, but the value exchange does not have to be instantaneous. Establishing a relationship with a consumer involves highs and lows; iterations and reworks. When you demonstrate an agile philosophy towards communicating with your consumers, they will respect you a lot more for approaching them and trying to engage them in the environments that they not only already participate, but where you have asked their permission to join them.

My Definition of Value Exchange

So, what can we ‘define’ as value exchange? Well one thing to be clear on, is that peoples own definitions and understanding of value are quite disparate. What may seem a paltry exchange of value to one person, may be above and beyond expectations for another. Here are some things to consider:

• Respect - For me, demonstrating respect for your consumer can represent a significant amount of value. Respecting their personal space, data and preferences can establish or maintain an incredibly positive relationship. So ask their permission, don’t patronise them and treat them like human beings, and you just see what happens.
• Incentives - Although it may seem like I wrote off the idea of incentivisation earlier, giving your consumers that little bit more really does help. It does not however always have to be a free gift, or extended warranty. By listening carefully to what they want, marketers can match their expectations and go the extra mile, without breaking the bank. So make the incentive something the consumer actually wants, rather than something that makes the purchased product or communication that little bit more attractive.
• Involvement – Inviting citizens to contribute to or partake in an activity which is usually a closed space, can create an incredible amount of value in both parties favour. Creating the opportunity to submit suggestions on how to improve the business, or even ideas for the next marketing campaign can make the citizen feel like they are having a direct impact on the business (and this heavily ties in with the ‘respect’ bullet above). At the same time, the business has access to direct and honest information from the people that matter the most.
• Commitment before returns – As a business, you may need to accept that this year, you need to take a hit. By going the extra mile for your consumers (which could eat up a lot proportion of your marketing budget), it may make this year look a little less successful, but for long term stability and consumer satisfaction, it could be the break you need. Its all down to having the balls! Take the leap, or sit on the edge and wait for the cliff to give way? Consumer loyalty and trust is, in comparison, invaluable.

I hope this makes sense, as my mind notoriously sees things and inteprets them in ways that other find, quite frankly, plain stupid. I would love to hear what you think. What does value exchange mean to you? In your personal or business lives?

Posted by Carl