People want to be validated. If your product or service can do that for them, you can charge whatever price you feel like.
What services are good examples of validating people, and what do they validate?
Here’s an easy one.
Facebook validates that I’m popular and/or connected to other people – humans need connection and community.
Facebook, Twitter, LinkedIn and other social networks trigger the reward center in our brain whenever a post is “liked” or commented on.
Like this one for instance.
Known psychological system that has been well studied.
Neiman Marcus and other high-end retail establishments validate our need to feel special. A personalized shopping experience.
It is also why that little cheese store still exists, the out-of-the-way coffee shop that creates your cappuccino just the way you like makes you drive 20 minutes out of your way, and why that restaurant who remembers you the moment you walk in the door, all do a fantastic trade based on personal interaction.
On a larger scale, Uber makes you feel “like you’ve arrived” because you have a “personal driver” even if you have to share that driver with someone else once in a while. It also doesn’t hurt that Uber is a better taxi service than normal taxi servers.
Validation doesn’t come through from purely automated systems.
“Thanks for being a loyal customer. Here’s a 10% coupon if you will come back and buy something.”
Validation comes from another person – even if that other person uses an automated tool.
When I send out a connection request on LinkedIn, assuming I don’t accidentally send the default invite message, I always personalize the invite.
“Hey there , you popped up on my People You May Know feed and it looks like we have some people in common. I feel it might be mutually beneficial to connect. P.S. I won’t ever waste your time.”
Or some words to that effect.
When someone accepts my invite request, I thank them for it, with a similar polite message. When they celebrate a work anniversary, birthday or change jobs, LinkedIn lets me know.
Most people click “Like” or “Congratulate” which sends a stupid boring canned message. I have a swipe file of about 1,000 pithy and humourous greetings or well wishes I can send out to my connections. I validate their existence. I get a solid 24% response rate on every message sent.
People want to be acknowledged and they want to know it didn’t come from an automated system. People want their existence, their work, their worries, and their dreams validated.
You might not be able to validate all of those, and some of them are too big, but if you can tailor your service to get partway there, price is never a problem.