Customer value creation quickly becomes a discussion topic in most C-suites and boardrooms. The reason is straightforward: if you don’t create more customer value, your only recourse will be to cut prices, which will turn into a race to the bottom.
As experienced business leaders, we all already know the following:
- What customer value means
- What our customers value most when it comes to products and services like those we deliver
Unfortunately, we probably have misconceptions and outright errors in our thinking that will invalidate our plans for post-COVID-19 business reopenings.
Defining Customer Value
Customer value is the difference between what you get (the outcomes) and what you pay (the cost). Outcomes are what matters most to the buyer.
However, the above definition is too simplistic. At Middlesex Consulting, we define customer value as:
“The buyer’s perception of tangible (economic) and/or experiential (emotional) net improvements (benefits minus costs) to business outcomes (profit, CSAT, etc.) resulting from using or owning the supplier’s products and/or services, compared to all alternatives.”
To continue reading, please click here
Also, read Creating Lasting Shareholder Value By Creating Customer Value and Customer Value and Loyalty are Interchangeable and Fragile
About Middlesex Consulting
Middlesex Consulting is an experienced team of professionals with the primary goal of helping capital equipment companies create more value for their clients and stakeholders. Middlesex Consulting continues to provide superior solutions to meet the needs of its clients by focusing on our strengths in Services, Manufacturing, Customer Experience, and Engineering. If you want to learn more about how we can help your organization create more value for your customers, please contact us or check out some of our free articles and white papers here.
Photo by Andrea Piacquadio from Pexels