The Importance of Customer Value for Every Business

Value is a word with multiple meanings. It can be the price, or the worth of something. But when we see it in a technical angle, the meaning of value must be precise for everyone to understand. Take customer value as an example. In a business, it literally means the benefits a customer gets of the products he/she paid.

Keep in mind that the customer not only dashes to your store and pay the price of your item. They also used their time and energy as well. That’s why you often hear people saying that one must value their time and should not be wasted. So as a company, you should ensure that your products will be worth their effort of getting one, thus not wasting their value either its priced or non-priced.

Also, you shouldn’t mistake the word “Values” with “Value” as both of them has two separate meanings. The former means someone with manners such as honesty, morals, etc. The latter is already explained at the top.

When it comes to differentiating consumers and customers, both of them doesn’t have the same meaning. Consumers are the one that uses your product and services but doesn’t actually buy them. Customers, on the other hand, are the one who buys and uses your product. Additionally, a non-customer is someone who buys your product from an external source, not from your company.

What About Customer Value?

Most people perceived customer value only at a surface level. But in reality, value undergoes a process that dives deep into the core of a customer’s journey with the product. It starts from the purchase intent, down to shopping, the actual purchase, the usage, and the re-sale if he/she decided to sell the item. Businesses call this as the “waterfall of needs” which is already pretty self-explanatory.

The more you appreciate customer value, the better the customer satisfaction and performance will be. This leads to more profit and a higher market share and of course, more loyal customers that will up the ante of your business. Along the way, you will also create lesser errors and increases your business efficiency that will create a good reputation to your business.

Creating Real Customer Value

First and foremost, you need to understand the concept of value and how customers perceive this kind of value. Customer needs isn’t constant and will change from time to time. You also need to realize that people choose your products/services because they think it is better than your competitors.

With that said, you must think outside the box and see why your customer chooses your products than the other. Weighing the price and benefits will help you see the bigger picture as well which allows you to evaluate in what way your products have given a better solution to your customer’s problems. Here are some few examples on how to create real customer value.

  1. Having a price point that gives extra benefits compared to competing products/services.
  2. Creating extra payment methods for a more convenient shopping experience.
  3. Having good reputation to gain customer trust, thus, creating value.
  4. Giving customers products that works as advertised and also imposes user-friendliness.
  5. Making the customer feel valued by simple gestures such as smiling, greeting, and assisting in their overall shopping experience.
  6. Tending to their needs as soon as possible.
  7. Giving them easy ways to contact your company if ever they have concerns.

These examples listed above are just the tip of the iceberg. You can make your own ways on creating real customer value depending on your style and strategy.