In an address at the annual conference of the Venous Association of India in Mysuru, Infosys founder NR Narayana Murthy imparted valuable insights for entrepreneurs aiming to establish successful consumer brands. He emphasised the importance of delivering exceptional value to customers, advising that brands should strive to provide at least 5-10 per cent more value than what is advertised.
“If you want to increase the price of a product, you have the responsibility to make sure that the buyer experiences a much higher value so that the ratio of value over price is higher,” he said. “The ratio of value over price is the basis for all purchasing decisions.”
Murthy elucidated the concept of value as the customer’s perception, distinct from the price paid for a product or service. He underscored that consumers inherently assess the worth of their purchases based on the ratio of value to price.
Murthy’s guidance reflects a deep understanding of consumer behavior, highlighting that individuals often associate ownership of certain products with status and pride. He shared anecdotes to illustrate how products like a prominently displayed refrigerator in one’s living room or owning a specific brand of phone or watch can confer a sense of prestige among peers.
Drawing from his own experiences, including interactions with empathetic doctors in his local area, Murthy pointed out that value can manifest in various forms, including the emotional connection and care provided by service professionals.
He also touched upon leadership qualities, citing Mahatma Gandhi as an exemplary figure who embodied transparency and integrity, suggesting that entrepreneurs could learn from such historical figures.
“People think if they have a certain phone or watch, it gives them a certain stature, prestige among people around them,” he explained.
Furthermore, Murthy called for the adoption of robust information systems in government hospitals to ensure diligent use of taxpayer money, thereby delivering the best value to citizens. He advocated for the integration of technology in healthcare to enhance the productivity of medical professionals and maintain control over expenditures.
“They may not be doing the most advanced procedures available in the world, but they bring a unique value to him: that is empathy,” he added.
The veteran entrepreneur’s advice resonates with the broader discourse on brand strategy and customer satisfaction. It aligns with the principles of creating a strong unique value proposition, as outlined by Smart Insights, and the various strategies for exceeding customer expectations, such as obtaining regular feedback, personalizing offerings, and providing exceptional support, as suggested in multiple sources.
“Even in government (hospitals) where there is no focus on control of expenditure, as it comes from taxes, it is the responsibility of the society to use that tax money very diligently, very carefully to get best value out of it.”
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