What Are The Components of Client-Perceived Value?

This has been a question on my mind since diving back into the world of sales. For better or for worse I tend to believe there is a formula for most problems—something that consistently solves a given problem with similar characteristics.

I also believe that people buy something or hire an advisor when the pull of the solution is greater than the pull of the person’s current situation.

Simple, right?

So if I can figure out the things a prospect looks at to determine the value of the new solution, then I can create a playbook designed to demonstrate the right value at the right time. Thus the pull of the new solution will outweigh the pull of the prospect’s current situation.

The 4 Components of Client Perceived Value

I first learned about these components when building out the customer success motion at Elements. It was introduced to me though theysaid, a company that offers a better NPS solution to teams getting feedback from their customers.

According to theysaid (you can read about how they apply these here), there are 4 factors that compose customer perceived value:

• Problem: are we solving a critical problem for the customer?
• Product: with a great product experience?
• People: and people and services that add value to their overall experience with us?
• Price: at a price point that is easy to justify?

As I’m individually exploring each of these factors I thought I’d just provide a brief summary in this article and save a deep dive for later…

1. Problem

Not to be confused with symptoms or surface issues—it’s about digging deep to uncover the core challenge that’s affecting your prospect’s life or business.

Clarity is the desired outcome here.

If you don’t isolate and help people find clarity around the real problem, no solution can truly resonate. I often think of it like taking your car to a mechanic: you want them to diagnose the root cause of that annoying check engine light, not just apply a temporary fix. When a customer clearly understands the problem, they’re much more likely to see the value in a solution that directly addresses it.

2. People

This involves two aspects: the individuals they interact with (like you, your advisors, or support team) and the broader company or brand behind you.

Trust is the desired outcome here and plays a huge role.

A customer must feel confident that you’re not just another salesperson but someone who genuinely has their best interests at heart. When your team exudes credibility and the brand stands for reliability, customers are more inclined to invest their time, money, and trust in you.

3. Product

For financial advisors this is the service or solution you’re offering—what you actually do for them. I like the word “product” to describe this because it makes things a bit more tangible.

Predictability is the desired outcome here. People need to know what to expect.

It’s not enough to have a fancy pitch; your product must offer tangible features and benefits that resonate with the customer’s needs. I often reflect on the idea that sometimes we add features just for the sake of it, without really asking, “Is this valuable to my client?” The true test is whether you can draw a strait line from the problem your prospect has and the product you offer to solve that problem. When your product does, the customer perceives higher value because they see a clear pathway from their pain points to a solution.

4. Price

Lastly, there’s price. This isn’t about being the cheapest option out there; it’s about offering a meaningful return on investment.

Justification is the desired outcome here.

Clients assess price in relation to the value they receive. If your product solves a significant problem, and your team is someone they trust, the price becomes a worthwhile investment rather than just a cost. It’s important to strike a balance—ensure your pricing reflects the comprehensive value you deliver without undercutting the quality of your service.

There you have it!

The four components of client perceived value. Do I think this is the silver bullet to successful prospecting? I’m not sure yet. I’ll continue to test and iterate until I find the thing that works for me at Dentist Advisors.

But for now, I’ll try using these components as a way to judge if my prospects actually see the value in our firm.

Stick around and we’ll dive into the others.