What is customer perceived value?

[Shakil1984]

Why focus on customer perceived value?
Customers perceive value in 3 key factors
Know your target audience
5 tips to improve your customer perceived value
How to measure your success?
Defining customer perceived value can be a little bit difficult, partially because it’s such a broad topic.

On the simplest level, the question of how much a customer values your product has to do with how well it performs the function it’s intended for (and how important that function is).

However, we can push the idea of CPV south africa consumer email list further and look at it as a comparison between how much someone thinks a product is worth to them and how much it actually costs.

This second perspective allows us to see that CPV directly relates to whether a customer thinks a product is a good deal, fairly priced, or overpriced. For example, when the CPV of a product is higher than its price, it seems like the benefits of a product outweigh how much it costs.

What’s the difference between real value, customer value, and customer perceived value?
Real value is a measure of how much it actually costs to produce (and market, distribute, etc.) the actual product. This is basically a tallying up of the expenses that a business has in delivering a particular product to their customers.

As discussed, CPV is a more philosophical idea relating to what the customer thinks about the benefits of a product and how much those are worth.

Finally, customer value can be defined as the actual benefit that a product delivers to consumers (independent of what they think about it).

Now that we’ve cleared all that up, let’s take a look at how to calculate customer perceived value.