September 25, 2018

Fuzzy metrics

Many people have a hard time with value-based pricing at first because it requires that you come up with a way to measure the value of your work.

Since lots of service providers deliver intangible outcomes to their clients, they tend to believe that what they do can’t possibly be measured.

While it’s probably true that you can’t measure the value of what you do based on some discrete scientific unit, or a bottom-line dollar amount, you can - none the less - measure it in useful ways. They’re fuzzy, but still useful.

Fuzzy metrics are often all your clients need to make a go/no-go buying decision.

If you don’t believe me, consider your own buying behavior:

You know those five-star ratings systems on Amazon, or Yelp, or Uber, or Thumbtack? Do you ever decide to buy something based on how many stars it has? If so, you’re making a decision based on some very fuzzy metrics.

Star ratings are far from perfect, but they’re WAY better than nothing. They’re good enough often enough that loads of people seriously consider them before making a purchase. I’d be willing to bet that a significant percentage of people consider the ratings before any other factor, including the price.

So if you can’t figure out how to measure your work, ask your happiest clients. Once you have that information, add it to your marketing and sales materials.