How do clients define value?

How do clients define value? Clients’ definitions of value vary. Common definitions include:

• Value is low or lowest price. Some clients want only the absolute lowest price. But is that really value? That is, did they get what they expected and paid for? #clientservice, #businessdevelopment
• Value is getting what is most wanted from a product or service, i.e., perceived value for the money.
• Value is quality plus result received for total price paid, i.e., total received for total price paid.

A client’s overall evaluation and perception of value are based on his or her perception of the total benefits, results and utility received versus the total price paid (including time that is spent or given up). There are five main components of perceived value, but the relative importance of each varies by client, case/matter, #RFP and situation:

• Quality – Perceived excellence of expertise, experience and reputation; all work product created and delivered; all associated communications; and the final result/outcome.
• Service – Delivery of the work product (briefs, documents, conference calls, etc.) and all communications accompanying the delivery of the work product, plus any/all added extras/value-added items, and/or comp or free service(s).
• Time – Client’s perceived level of importance/urgency in relation to the level of risk at stake, the speed of response and the total time to completion of case/matter.
• Price – Client’s perceived value of total benefits received versus total paid.
• Chemistry – Does the client like working with you? Does working with you make their life better or easier?

The weight and importance of each of the five components above varies by client and situation. But, all clients want and expect expertise, i.e. that the lawyer/professional working on their cases/matters is a subject-matter expert, has done it before, has experience handling, and knows what they are doing.