Understanding "Value" Better

The value equation:

When considering the value you, your product, or your service can add to an organization, client, or customer, consider four factors as shown in the equation above:

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1. Customer's dream outcome: The gap between their current reality and their dreams / objectives - Seek to meet
2. Perceived likelihood of achievement with your product or service:? a factor that answers: “How likely do I believe it is that I will achieve the result I am looking for if I make this purchase?”- Think testimonials / success stories -? Seek to increase
3. Time delay: the time between a client buying and receiving the promised benefit - Seek to decrease
4. Effort and sacrifice: This is what it “costs” people in ancillary costs, aka “other costs accrued along the way.” - Seek to decrease

Most successful organisations/individuals focus on reducing the denominator to zero (not increasing the numerator), creating infinite value (math lovers would appreciate this piece of art)? and charging a premium in the process.

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Bottom line:

When you can help your client (or organisation) achieve their goals and dreams in the least amount of time with the least amount of effort on their end, you are perceived as more valuable than other alternatives .i.e strive to make make things immediate, seamless and effortless

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?Go deeper:

I'd like to elaborate on this concept with two personal examples: one using quick commerce in India and the other using OTTs for casual viewing

?Note: As Alex Hormozi suggests, I will use 0 for "value not achieved", 1 for "value achieved" for each of the value drivers and add them to quantify overall value

• Quick commerce: Why I prefer (value) Zepto over Blinkit for quick deliveries

• ?OTT: Why I browse Netflix first over Amazon for casual, quality viewing

What next:

Whenever you want to assess the value you, your product, or your service adds to a prospect/client/an organization vis-à-vis alternatives, use the value equation.