Customer value

What Is Customer Value?
Customer value is so fundamental to businesses that it is sometimes completely ignored. It gets hidden under layers of actions and decisions. Companies may believe that they know what value they are delivering, but they may not be able to easily define it. So what is value? How does one know whether value is being created in the work one does? Is it created optimally? At what cost? For whom? Does the customer know what is valuable? Is value the same as what the customer demands? How can value be defined and measured?
Are You the Customer of Your Products/Services?
It is imperative for a company to understand and empathize with its customers before defining value – and remember that there will always be a trade-off between total benefit versus total cost. The customer will continually evaluate that trade-off. A salesman’s role is to convince the customer that the benefits the customer perceives are the best that money can buy. The salesman may not keep the relationship going if the value remains a perception only. This calls for an end-to end customer value model which runs, adapts and is refined as the customer relationship progresses.