Creating Customer Value

Creating Customer Value
Instructor: Noah Fleming
Released: 10/18/2021Course Details
Skills Covered
Customer Value Creation
Course Link
Professional Certifications and Continuing Education Units (CEUs)
If you are a customer service manager or a sales manager, you know how important it is to identify a customer’s value to your company. But how do you assign the value? How do you determine what is most valuable to your company? In this course, instructor Noah Fleming walks you through ways to define, create, and evaluate customer value. Noah explains both the way the business defines customer value and the way the customer defines value. He goes over a number of simple ways to create customer value and ways to measure customer value. Then Noah dives into the value narrative, covering steps like understanding value over price, reviewing your company messaging, and reshaping your value narrative. He finishes up with some advanced tips, such as proactively extracting customer value, considering current value vs. future value, and sorting from low value to high value.

Source: LinkedIN Learning
Understanding Customer Value

What is customer value?

Is a referral worth something to your business?  Does a customer testimonial add value?  Reshape your value to emphasize aspects most valuable to your customer.  

Defining customer value

Customer Value
The measure of benefit your customers perceive they’re getting from you, compared to what they’re giving.

Business is the exchange of value.  The perception of value lies in the eyes of the customer.  

Define and Discover Customer Value

  1. Think of value as a two-way street.
  2. Let customers define value.
  3. Discover ways to extract customer value.

Creating customer value

Creating Customer Value

  1. Positioning – what motivates them to purchase
  2. Differentiation – with your products and competitors, how unique is it?
  3. Personalization – no two costumes are alike
  4. Trust – crucial to building value, providing confidence to the customer

Different ways to measure value

What other ways of measuring customer value are there?  How do we do it?

Tangible Value Measurements
Real dollars and cents spent by customers for something.

Total Customer Revenue Earned Over Time  – Cost of Services and Relationship Maintenance
= Customer Lifetime Value

Intangible Value Measurements
Customer goodwill and word of mouth

Measure Your Intangible Value

  • Conduct surveys on social media
  • Find out if customers are referring you

Customer value is measured by the total number of ways a customer values your product or services. 

The Value Narrative

Understanding value over price

A product or service is not worth anything if it doesn’t satisfy the customer’s needs.

“You want to make it easy for the customer to say ‘yes’ and the customer to be happy.”

Separate Price From Value

  1. Use brevity.
  2. Share past customer satisfaction.
  3. Focus on customer ROI.

Reviewing your current messaging

Do not overpromise and underdeliver.  

Effectively Communicate Your Value

  1. Review your current messaging.
  2. Ensure communication methods are honest.
    1. Are you making false promises?  Review your messages regularly.

Reshaping your value narrative

Reshape your value to emphasize aspects most valuable to your customer.  

Learn What Customers Value

  1. Conduct a service lifecycle or value analysis.  Ask customers how you can improve.
  2. Survey customers with interviews or focus groups.  Keep surveys brief and to the point.

Have Conversations with Customers

  • Talk to new customers
  • Speak to old customers
  • Learn why costumes left
  • Discover why customers stay

Different strokes for different folks

You need to segment your customers to narrow down what’s important to which groups.  

Segmentation Methods

  • Purchase frequency
  • Type of products or services

The key to any successful segmentation starts with tracking things.  

The expectations gap

Business must work to minimize the “expectations gap”.  

Locate and Minimize Expectations Gap

  1. Observe how business is conducted.
  2. Focus on the customer’s perspective.
    1. Try secret shopping your own company.
  3. Communicate with your customers.  Create several avenues for feedback.
Advanced Customer Value

Extracting customer value

Net Promoter Score
The likelihood that someone will refer your company to their friends and family.

Increase Your Net Promoter Score

  1. Ask for referrals.
  2. Develop compelling case studies.
  3. Increase customer purchase frequency.

Create a Case Study

  • What was the customer’s challenge, want, need or desire?
  • How did we help them get what they needed?
  • What was the result?

Current value vs. future value

Who is more valuable?  Long-time customer or a new customer?  Learn the difference between current and future value.  Current value isn’t as powerful a metric as the future value of a customer.  

Low value to high value

“You need to know who your best clients are now, and do whatever it takes to keep them.”

Is it worth continuing to spend money on customers who’ve purchased once in several years?

To experience the full benefit of this guide, I highly recommend you watch the full training session.

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