How To Increase Customer Value

Marketing Focused

What is customer value?

Customer value is the perceived range of benefits a consumer gains from purchasing a product or service minus the perceived sacrifices.

For example let’s consider an eCourse. The benefits are:

* Gaining knowledge

* Improving your marketing skills

* Gaining more customers as a result of being better at marketing

* Being able to learn flexibly

* Having a healthier bank balance from increased sales

The sacrifices are:

* The time spent consuming the content

* Allowing me to contact you with offers and information

Think for a moment about your own products and services. Think about the benefits under the following headings and write them down:

* Product benefits

* Service benefits

* Relationship benefits

* Image benefits

Now consider the sacrifices:

* Money

* Time

* Energy

* Psychological

Think for a moment about your own business. Are you exceeding your customers expected benefits?

To raise customer value you must raise the perceived benefits whilst minimising the perceived sacrifices. This can be done by ensuring your marketing promotes the benefits whilst playing down the perceived sacrifices.

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