What is the customer's value?

The value of the customer is the advantage the customer receives from the product or service compared to its costs. This advantage could be measured in cash, for example, if the product helps to save the customer's money that would be spent on something else. The advantage may also be difficult to quantify, such as the pleasure that the customer receives from the product or service. The term 'customer' value should not be confused with customers' value for businesses. It refers to the value that customers receive, not how valuable customers are.

realization vs. victim

Some entrepreneurs explain the value of the customer as a realization compared to the victim. "Realization" is a formal term for what customers get from their purchases. The victim is what pays for a product or service.

value measurement

product or service can provide value in many ways. Along the jokes helps the customer UšHitting money or providing pleasure, it can also save consumer time, provide an advantage that cannot be obtained without a product, or increase the value of something that the customer already owns. For example, if a self -employed woman buys a computer that allows her to save time performing tasks, such as creating invoices, keeping records, or budget management, can be able to spend more time aspects of their business that make money. This could allow her to increase her monthly profits by more than the original computer costs, which makes it easier to identify the net value she has received from investing in the purchase of a computer.

used businesses

businesses of all sizes use the customer's value as part of a greater analysis to determine how well they serve their customer base. Detailed research may include what customers generally do with products that buy or how they use services to increase their assets, drought as real estate or cars. Businesses also look atPrices of their products compared to the value that customers receive from them so that they can competitively appreciate and maximize profits.

Promotion for customers

6 This is basically a promise of benefits for customers who buy products or services. Examples of designs for customer value can be seen in advertising. Companies determine the benefits they believe to realize, and show them in ads in the hope of attracting more customers. Laws that ensure the truth in advertising are unlawful to advertise very exaggerated or false value of customers for their products or services.

Related concepts

together with the basic idea of ​​the customer value, other terms help to further define this value exactly. Relative performance identifies how the company or service of the company provides the value of the customer compared to the value of competitors of products or services. Access cost is something that business analysts add as an estimateAdditional costs of effort associated with the purchase. Value designs often include these levels of detail that help managers look at how well the business serves its intended audience.