CUSTOMER VALUE

Customer Value



Customer Value

Introduction

There is not any clear customer value's definition though it may be defined as the distinction between the realization of customer for the product and what the customer pays to obtain that product. In the course of utilizing the product what customer receives include features of product, service and the most importantly the quality of the product. A customer intends at getting greater realization create a bearing of product in mind that in order to purchase the desired product he/she sacrificed money. Beyond any doubt the stores of whole food, super stores and shops and vegetables and small farm stores are doing financially well, this is recognized by the value that is being derived by the customers.

Defining customer value

There have been various difficulties for number of authors who are involved in defining the customer value. Its has been defined by many of the authors that customer value is perceived inclination of customer for and assessment of the attributes of product, performances of attributes, and costs arising from utilizing that make possible achieving the goals of customers and purposes in utilization conditions (Anderson, 1999). Even though, the several contexts, tasks and criteria in this definition reveal the complexity and richness of the concept. This is very much related to the consumer; however, there is another side for the marketers. Customer value is the distinction between the customer gained values from using and owing product and the charge of acquiring the product. In contrast, we can understand that the entire customer value is the total summation of value of product, value of services, value of individual and value of image. In addition to these financial, energy and physic costs are the complete customer's cost (Gale, 1994).

Customer value: how does it work?

The estimate of customer value based on projected revenue realized from each customer or customer segment. It provides an estimate of the return on investment for each marketing made over time. Customer value allows to optimize investments by focusing only on the advertiser's most profitable customers and / or develop the profitability of a customer participating in the growth rate of its equipment and food. This indication also has a predictive value in terms of risk: customer value to estimate the risk of default, termination of subscription, transition to competition ... and deploy marketing campaigns accordingly.

Creating value seems to be the phrase of the moment: it is said everywhere, on every kind of professional, on almost every type of service. Do not just sell, we need to deliver value to the customer or we can not just sell the product, we sell value. However, before taking action, changing the mission statement and write the speech, one must understand the client's vision of what value is changed greatly in recent years. Today, it is not only in search of lower prices, customer also want quality, and at an affordable price. Professor Neil Rackham was in Brazil to present the International Seminar on Innovation in Sales, by HSM, and talked ...