Immediate Value (Success Factor 1 of 20)

What is the ideal outcome and what benefits will it bring?

When customers initially interact with a product or service, it is vital to provide them with immediate value, creating a positive initial impression. By minimising the obstacles to experience the value customers are more inclined to convert, resulting in increased acquisition rates and ultimately retention. Moreover, it enhances their trust in the brand, leading to greater viral awareness and brand reputation.

What changes have we seen in the market?

The concept of immediate value, inspired by digitally native organisations, has significantly influenced customer expectations, making it crucial for all companies whether physical or digital products and services to showcase the value right from the start. As a result, month-to-month contracts have become the prevailing practice, enabling customers to terminate at any time and reducing their risk regarding value expectations. To fully capitalise on this opportunity, businesses can offer more for free initially and evaluate their paid and free propositions throughout the onboarding process and during the initial 30 days.

What successful examples have we seen?

A study conducted by Shopify revealed that 74% of consumers expressed that the ability to try on a product before making a purchase would eliminate a significant drawback of online shopping. This finding highlights the importance of providing customers with the opportunity to experience the value of a product firsthand.

Take a look at Amazon...

Amazon Prime’s ‘try before you buy’ adoption is a tailored user experience for consumers with easy checkout processes and free return perks, elevating the e-commerce brand exponentially above all else. Customers can order up to 8 items, keep them for 7 days, and return what they don't want for free. As a result, Amazon has…

1. Exponential growth: Became the nation’s leading apparel retailer in the US.
2. Unmatched consumer retention: Had a 93% retention rate after the first year and 98% after two years.

Where should you start?

• What is your existing strategy regarding paid and free propositions?
• What similar offering could you provide as an equivalent to the "one month free Netflix" promotion?
• At what point are you currently positioned on this maturity scale, and what benefits would your customers and business gain by advancing further?

Immediate Value is one of IE’s 20 success factors. To learn more, read our first article, ‘Winning in a Product-Led World’.

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