The importance of understanding customer value

customer value

Date:

Category:

Share this article:

If you take the time to learn what your customers value and what they are prepared to pay for, you’ll be able to market your business more effectively and win new customers.

This is the definition of customer value and it’s important to keep it in mind. The same goes for the following: customers don’t buy features – they buy benefits, goals and results. Most businesses make the mistake of thinking about value purely in terms of money. They create special offers to promote their products and services, but all they are doing is cutting their profit margin in a race to the bottom.

Adding customer value

As said, value is about more than just money. Your customers are seeking an outcome and this is what drives their buying decision. For example, an accountant might save a client £6,000 on their tax bill and charges £2,000 for doing the tax work. The monetary value to the client is, therefore, £4,000. But what if this is only the beginning? What if the client wants to grow their business over the next three years? As an accountant, you could add value by providing advisory services to the client to help them to achieve that goal. The client would be willing to pay for that additional service because it helps them to reach their objective.

“The client may value the convenience and efficient service to the degree that they may even be willing to spend more for that service.”

The experience counts

What also influences a customer’s perspective of value, is the experience. If an accountant is hard to deal with and difficult to reach, a client will not think that the service is great and may question whether it is worth the money. On the other hand, if the accountant offers meetings over Skype, at a time convenient for the client and provides documents by email with e-signature capability, the client may value the convenience and efficient service to the degree that they may even be willing to spend more for that service.

An excellent example

Therefore, understanding customer value is essential for marketing your products and services more effectively.

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

If you opt for acceptance, we will place all cookies. If you opt for rejection, we will only place functional and analytical cookies. You can adjust your preferences at a later time.

Accept Reject More options

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

Functional cookies
Arrow down

Functional cookies are essential for the proper functioning of our website. They allow us to enable basic functions such as page navigation and access to secure areas. These cookies do not collect personal information and cannot be disabled.

Analytical cookies
Arrow down

Analytical cookies help us gain insight into how visitors use our website. We collect anonymised data about page interactions and navigation, enabling us to continuously improve our site.

Marketing cookies
Arrow down

Marketing cookies are used to track visitors when they visit different websites. The goal is to display relevant advertisements to the individual user. By allowing these cookies, you help us show you relevant content and offers.

Accept all Save

Name

Subtitle
Developer
Location
They are focussed on creating a future-focused and relationship-driven culture, that keeps its promises to you, our team members, and partners.
Xeinadin