“Intrinsic” Versus “Perceived” Value: Which Matters More?

To offer clarity throughout this post, I will provide the definition of the two value types that entrepreneurs should consider before establishing their brand identity:

Intrinsic Value - The price a rational investor is willing to pay for an investment, given its level of risk. (Corporate Finance Institute)

Perceived Value - The price that the public is willing to pay for a good or service based on its utility, or the extra benefits and values that the customer expects to receive in using it. (Investopedia)

So, when it comes to personal branding, which matters more?

I pondered over this question after watching a YouTube video by Myron Golden. I recently had an encounter with someone who had trouble understanding that perceived value differs for everyone and that intrinsic value does not apply to most service-based businesses. I believe that the lines often get blurred due to our ability to comparison shop online. You might tell a potential client that you charge “X” per hour or offer them a flat rate for a particular service. If they don’t find value in the process it took to curate the final deliverables, no matter how you break it down to them, they won’t feel 100% comfortable with the investment and just might shop your proposal for a "perceived" better deal.

In my personal experience, people who don’t appreciate service providers for the culmination of their refined approach (skills), natural abilities (gifts), and lived experiences (wisdom) will lump them into the “perceived” category while also demanding a line-itemed list of services, along with the associated cost, just to start a debate. This is why having crystal clear brand messaging is so important.

Most of us have heard the saying “a confused mind won’t buy”. As the service/product provider, it is your job to take your ideal client on a journey that gradually builds trust. This starts with getting to know what makes them tick and carefully curating their initial encounter (first impression) with your online presence.

• Do you have an easy-to-navigate website?

• Is your “About” page complete with the reason why you started your company and an explanation of your Core Values?

• Are your service/product offerings clearly laid out with a call-to-action?

• Do your images resonate with your intended audience?

• Do you have at least three (3) testimonials in a highly-visible area on your site and/or listed on Google?

Effectively communicating your "perceived" value from the beginning with a potential client is why hiring a personal branding agency is paramount. Statistics show that perceived value typically outweighs intrinsic value which is why marketers spend a lot of effort continually refining a brand’s image and messaging. This is because most people make decisions based on what feels “right” or “good” to them in that moment without having actually tested the product or service in real life.

I’ll close with this. Consider how your audience responds to your offering(s). If you aren’t quite sure where they stand, conduct periodic surveys and make the necessary improvements to enhance their experience. This will, over time, increase your "perceived" value that will eventually enable you to dominate the online marketplace in your respective industry.

By N. Renee McFadden

Founder

Super Model 360