Use This Pyramid To Increase Customer Loyalty and Grow Your Revenue

The higher your product or service is on this pyramid, the more valuable your business is perceived to be.

The Thrive Global Community welcomes voices from many spheres on our open platform. We publish pieces as written by outside contributors with a wide range of opinions, which don’t necessarily reflect our own. Community stories are not commissioned by our editorial team and must meet our guidelines prior to being published.

You’ve probably heard or are familiar with Maslow Hierarchy of Needs, a popular theory in psychology that divides human needs into five different tiers.

From the most basic needs (think: air, food, shelter) to self-actualization (think: the desire “to become everything one is capable of becoming”), Maslow’s model gives light to how specific needs can motivate human behavior. 

So, how does it relate to your business, customers and sustained revenue model?

When customers evaluate any product or service they typically weigh the perceived value against their need and then, your asking price. 

The more valuable your product or service is, the greater your customer loyalty and the amount they are willing to spend will be. Take a look at The Elements of Value Pyramid, below. Similar to Maslow’s model, this pyramid addresses four kinds of needs: functional, emotional life changing, and social impact.

To put it simply, the higher your product or service is on the pyramid, the more valuable your business is perceived to be.

According to The Elements of Value, “to be able to deliver on the higher-order elements, a company must provide at least some of the functional elements required by a particular product category.”

Use this model to understand where your business or service is located on the pyramid. Then, develop a strategy that can incorporate more elements to achieve revenue growth and increased customer loyalty.

    Share your comments below. Please read our commenting guidelines before posting. If you have a concern about a comment, report it here.

    You might also like...


    Short Story: Here’s How Small Businesses Can Stop Losing Their Customers

    by simon dutton

    What do you need to thrive right now?

    by Gregor Moniuszko

    Bill Donlan of Capgemini North America: “Have flexible service delivery models”

    by Tyler Gallagher
    We use cookies on our site to give you the best experience possible. By continuing to browse the site, you agree to this use. For more information on how we use cookies, see our Privacy Policy.