Customer value is the difference between what a customer gets (benefits) from a product and what he or she has to pay (cost) to get it.
Customer value = benefits – cost
- Positive customer value exists when the benefits derived from a product outweigh the costs incurred; in other words, when the customer derives satisfaction from a product.
- Negative customer value occurs when the benefits of a product are less than the cost of the product. As a result, the customer’s trust is eroded.
Since each consumer has a unique set of needs and resources, no two consumers will place the same customer value on the same product or service. Customer value varies from person to person. You might prefer an iPhone, whereas one of your friends might prefer the features of a Samsung. You might buy an iPhone because of its features, whereas your acquaintance might buy it because it is a high-priced brand.
Customers will typically purchase the item with the highest customer value among all available market options. Do you think Dominos has a higher customer value than Pizza Hut when it comes to deciding where to go for lunch?
The benefit of each item is measured against the cost, the best-quality product or service but it does not always provide the best customer value. Some customers are willing to pay a premium for a high-quality product or service, while others believe that the same benefits are not worth the price.
There are numerous strategies that companies and brands use to develop core customer values.
They are as follows:
Rewards-
When someone remembers you, it is always a joyous occasion. When you buy something from a store and are pleased with it, you may return to purchase something else. I bought a Tetley tea hamper for my grandmother and seemed to have forgotten about them until I received a bottle as a customer gift about 4-5 months later. I was taken aback, but it only added to my contentment.
Emails–
Croma, for example, requires your phone number and asks you to register with them. Later, whenever a new product of yours is released, you will receive a notification. If your product is nearing the end of its warranty period, they will contact you to extend the warranty.
Ratings-
Even the smallest company will now ask for your feedback. They care about what you think about them, from fast food restaurants to clothing stores.
Sales-
People are always enthralled by sales and offers. When you receive notifications about an upcoming sale, you can schedule a visit to the stores. This keeps the user engaged and makes them feel important.
Feedback forms-
It hasn’t been widely used yet, but it’s user-friendly and caters to customers’ specific preferences. It enables brands to seek acceptance and to adapt to their target audience’s preferences.
This is only a brief overview of the content marketing strategy. Our DelhiCourses institute has a lot more to offer. You can gain a wealth of knowledge by simply visiting our website’s pages. You should join DelhiCourses if you want to learn from industry experts and make a career in digital marketing.
About the Author-
Gaurav Heera is a digital marketing trainer and writer with many years of experience in the field. He often writes guest posts for DelhiCourses, an institute known for its digital marketing course in Delhi.