Customer value
Customer value is best defined as how much a product or your online store is worth to a customer. Actually, buyers purchase a product if the benefits are more significant than the costs, giving them satisfaction.
Customer value is the term of satisfaction of your customer towards your product or service. Basically, it’s a metric of all the costs and benefits associated with a product or service of your business.
Customer value isn’t only about money. The value word has many different meanings. Some value means price (Cost of bike) to others it means benefit (Value from the bike) and It also means the worth of something.
It's the perception of what a product or service is worth to a customer against the alternatives. Worth means whether the customer satisfy or feels he got benefits and services from what he paid.
Always reward your loyal customers. You can set rules to provide special pricing to customers based on tiers and reward returning customers. Konigle's Shopify Customer Loyalty Pricing helps you implement customer loyalty pricing for your Shopify stores, reward your customers, and increase customer LTV.
How to Create Real Value of Product?
Here are some points of how you create good customer value for your product or service:
- Give a good price to customers who believe that they are getting more than they pay.
- Time by time, reducing the price or giving something extra to customers.
- Make it more convenient for the customer to buy, and explain how he wants to buy something and pay.
- For B2B, give a proper price justification, not just a price but also the value of the item.
- Giving the product to a customer that works as it is meant and is easy for him to understand (reduces unnecessary time).
- Give the best support and service to customers for your business and product.
Customer value formula
The main formula for customer value are:
Customer Value (CV) = Total Customer Benefits - Total Customer Costs
Basically, customer value is going to vary from customer to customer (depending on the segment of customers). Each person is different and has specific needs, goals, and expectations about something.
You can try segmenting your customer base into different buyers and, then calculate customer value for each group.
How to increase customer value?
- Give the best customer experience
- Personalize support interactions
- Provide multiple support options
- Make sure customers know about you’ve heard them
- Understand which thing customer need
- Don’t forget your loyal and valuable customers
- Find opportunities to surprise and offer them
- Think about more than the cost
- Remove obstacles between you and the customer
- Understand what drives value for your customers