Benefits of Customer Value for Your Business

A profitable business can not only be achieved by creating the best products, but also through customer satisfaction. Well, one way to ensure this is through the concept of customer value.

Customer value is one of the marketing concepts that Qwords friends need to understand and apply if you are planning or running a business.

Understanding Customer Value

So, what is customer value? In short, customer value is a term for the level of satisfaction felt by consumers after they buy a product or use the services / services that you offer.

Customer value is usually related to the price of a product or service. However, there are many other things besides price that can be a source of customer satisfaction, Qwords friends.

Several other aspects that can affect consumer satisfaction are the brand, product quality to the long-term benefits of the product.

One thing you must understand, customer value is a subjective thing, meaning that between one consumer and another consumer may have different levels of satisfaction.

Sometimes a consumer is dissatisfied with the product or service you offer because they feel they don’t really need it.

At the same time other consumers are very satisfied with the product for other reasons.

So, is customer value only in the power of consumers? Certainly not. You can’t satisfy all consumers, but you can still make consumers get this customer value satisfaction.

Factors Affecting Customer Value

There are several important factors that must be considered in order to be able to get customer satisfaction / customer value. Here are some factors to consider:

Unique selling point
Product/service/service function
Product/service/service resources
Branding & marketing
Preferences (tendencies) of target consumers
Income level of target consumers
The target consumer’s experience after using a similar product/service.

How to Measure Customer Value

There are several formulas that you can apply to measure the customer value of a product, service or service.

The simplest formula is as below:

Customer Value = Benefit – Price

From the above formula, it can be concluded that the greater the benefits obtained by consumers (by buying products/services) at the same price, the greater the satisfaction (customer value).