What is customer value? Steps to build customer value
Definition of customer value in Marketing. The role of customer value in marketing activities of enterprises. How businesses create customer value.
What is customer value?
Customer value is the totality of benefits that customers receive during the process of learning, purchasing and using products/services. These values include the benefits of the product/service itself such as utility, features, etc., which resonate with the brand's values such as style, fashion, class, etc., along with the experience, feel throughout the process from learning, deciding to buy, use, care & after-sales.
The role & meaning of customer value in Marketing
- Customer value is an enhanced form of products and services.
- Customer value plays a core role in the marketing strategy of most businesses today, especially large ones with high brand awareness such as Apple, Honda, Mercedes, Chanel, Gucci.. These businesses do not merely provide products & services, but also provide many other values to consumers.
- Customer value creates a huge competitive advantage that has a profound influence on consumers' purchasing decisions.
The process of building customer value
Customer value is created not simply from the way of greeting, the attitude of the salesperson... but it is the result of the entire marketing process, from market research, positioning, development, and marketing. product development, production, distribution, promotion and communication. Each stage must be performed consistently according to the set marketing plan and strategy.
- Market researching: Find out about the needs, characteristics, characteristics, and preferences of the market that the business wants to target.
- Market positioning: Select the target market segment that the business can best serve.
- Product Development: Create products/services that best meet the needs of the target market, with accompanying services that complement the usage process.
- Distribution: Building channels, forms of distribution and sales so that target customers can access products easily, conveniently and comfortably.
- Promotion and communication: Consistency in brand positioning content in the messages of advertising, sales, PR campaigns... to spread customer value on a wider and further scale.
Frequently Asked Questions (FAQ)
Customer value is the perceived worth of a product or service in the eyes of the customer.
Customer value is important because it determines customer loyalty and repeat business.
The steps to build customer value include identifying customer needs, creating a unique value proposition, communicating the value proposition, delivering on promises, and continuously improving.
You can identify customer needs by conducting market research, collecting customer feedback, and analyzing customer behavior.
A unique value proposition is a statement that explains how a product or service solves a customer's problem or fulfills a need in a way that is different from competitors.
