The Elements of Value [Almquist]
Neat framework by Eric Almquist and the team at Bain:
Eric and team decomposed the fuzzy term “value” (to a customer) into a set of 30 “elements of value” organized in a Maslow-inspired pyramid consisting of 4 main categories: functional, emotional, life-changing and social-impact.
To test whether elements of value can be tied to company performance, specifically customer advocacy (as measured by NPS) and revenue growth rate, they’ve asked 10,000 survey respondents to give 50 US companies a 1–10 rating on each value element.
According to the Bain team, companies that received an 8+ rating on 4 or more value elements by at least 50% of the respondents, had an NPS score that’s 4 times higher, and a revenue growth rate that’s 3 times higher than the ones who received an 8+ rating on a single value element.
The team was also able to show that some value elements matter more than others. Specifically that quality trumps all other value elements, and that the other most important elements change from industry to industry.
Given the lack of details on the research methodology, I’m hesitant to derive any conclusive insights from the study itself. The most valuable thing the Bain team produced, in my opinion, is the taxonomy itself, which can be used as an effective scaffolding to drive clarity in conversations around new product development, marketing, consumer insights, etc.