What Is Customer Value?

At present, the research on customer value is being carried out along three different aspects: first, the value provided by the enterprise to customers, that is, the value of the products and services provided by the enterprise from the perspective of the customer; From the perspective of the enterprise, the value that the customer can create for the enterprise is measured according to variables such as customer consumption behavior and consumption characteristics. This customer value measures the relative importance of the customer to the enterprise and is an important criterion for the enterprise to make differentiated decisions. The study of customer value, which is the subject of value perception with the customer and the object of value perception, is called customer value exchange research.

value of customer

At present, the research on customer value is being carried out along three different aspects: first, the value provided by the enterprise to customers, that is, the value of the products and services provided by the enterprise from the perspective of the customer; From a business perspective, according to the customer

That is, the satisfaction of customers' needs from the company's products and services.

Professor Sean Mihan believes that customer value is the total benefit that a customer can obtain from a certain product or service compared with the total price paid when buying and owning, that is, the products and services that customers provide for them from the enterprise. The satisfaction you get. That is, Vc = Fc Cc (Vc: customer value, Fc: customer perceived profit, Cc: customer perceived cost)

That is, the corporate benefits realized by the enterprise from the customer's purchase.

Customer value is the profit that an enterprise obtains from customers who have a long-term stable relationship and are willing to bear the right price for the products and services provided by the enterprise, that is, the customer's contribution to the profit of the enterprise. "Long-term stable relationship" is expressed by the timeliness of customers, that is,

An enterprise's differentiated management of customers is an important prerequisite for customer relationship management, which is driven by two-way benefits: from the perspective of the enterprise, customer scale and profit contribution are different, which means that the value of different customers' contribution to the enterprise is different For many companies, 80% of profits are often provided by 20% of customers. It is necessary for enterprises to classify and treat customers differently, adopt different service policies and management strategies, and optimize the allocation of limited resources to achieve high output.

The distinction between customer value can be made from the following two dimensions. The first is customer value. The second is the strategic matching between customers and enterprises. The customer lifetime value should be the sum of the five values of customer purchase, customer reputation, customer information, customer knowledge, and customer transaction. The strategic match (SM) of the customer and the enterprise is the sum of the three matching degrees of positioning matching, ability matching, and value matching.

Customer value can be divided into four categories: strategic customers, profit customers, potential customers, and ordinary customers. Strategic customers are customers with high customer value and high strategic matching. Profitable customers are customers with high customer value but low strategic matching. Potential customers are customers with high strategic matching but low customer value. Ordinary customers are a type of customers with low strategic matching and customer value. ^[1]