Understanding Customer Value
Another thing that needs to be considered in the aspect of business success is customer value. Customer value is the emotional ties that arise from the total benefits received by the customer of a product / service is reduced by the sacrifices incurred to obtain the product.
The Concept of Customer Value
The concept of customer value is used as the first step in the formulation of further strategies to increase revenue. Customer Value is the essence of what is needed, and the desired or expected by the customer so that they decide to buy a product. It could be said that customers would buy an offer if it provides benefits in accordance with what the customer is sacrificed. Customer Value is the most important factor and determines the long-term success of a business.
Customer value can also be subjective because the product is not in accordance with their wants or needs. Or the customer is not satisfied with the products they buy.
Before conducting a marketing campaign, you must first measure customer value, so that it can influence customers to the offers you offer and want the product.
Factors Affecting Customer Value:
The function of the product
It is important to explain the function of the product you offer to your customers. If you don’t explain the function of the product you offer, consumers will not be interested in your offer even though the price you make is cheaper than other competitors.
Create a Unique Selling Point
Create new ideas or breakthroughs to sell your products that have more value than other competitors to win the competition. Perform proper branding to build consumers’ perceptions of your product.
Price and Quality
Create products and prices in order to survive in the market. It is necessary to create emotional value from customers in order to survive to buy your product not only because it is based on a low price. The price you offer must be seen to be fair to consumer satisfaction. Product quality must be maintained in accordance with the expectations of the customer. Service quality has a great influence on the purchase intention of a consumer.
You can create the experience of the customer into a pleasant memory for the customer. Because a pleasant experience has a strong influence on customers and returning to buy your product.
Customer Value Perception
Consumers will compare the benefits received from the service or product you offer with the price issued. Create a product or service that you offer has a value greater than or equal than the other competitors but has a lower price than them. This will increase the profitability of customers in terms of increased sales, reduced costs, an increase in the price of a low or investment needs.
Benefits of Customer Value
- Creating Customer Retention
- Assist the Customer Equity
- Growing Market
- Determine Price Competitiveness
- Helps Improve Good Relationships with Customers
- Maintain Reputation
Source: tallyfy.com, hubspot