A Customers Perceived Value

Perceived value as defined by customers createsability to develop a loyal customer relationship. To
loyal customer relationships, and customer loyaltycreate and sustain loyal customers it is necessary
is the best predictor of your future strength andto consider every contact with each customer as
growth potential. The value you provide to youran opportunity for you to provide valueevery
customers is always compared to the value yourtime. Every service point is critical and every
competitors provide: therefore, value is yourservice point has a level of expectation from the
customers perception relative to similar productscustomer that must be understood and managed.
or services in the marketplaceyour competitors.We call these contact pointspoints of connection.
Perceived value occurs at the intersection ofEvery point of connection gives your organization
what customers want and what they get fromthe opportunity to emotionally connect with your
you versus what they could get from yourcustomers. Your customers will judge your value
competition. You can only sustain customer loyaltyand their emotional tie at every point. Developing
by continually meeting your customers productand implementing a strategy of creating a
service qualifications, specifications, orconsistent emotional connection with your
expectations. You also need to meet their needscustomer creates value, which creates loyal
in the order that customers deem important whilecustomer relationships.
maintaining a favorable comparison between youWe know that loyal customers will always return
and your competition. In your marketplace, yourto purchase your product or service, which create
competitors are the alternative suppliers youra long-term stream of revenue. Another
customers use to form their comparative valueadvantage of loyal customers is that they will
perceptions. How would your customer defineconsistently boast about your product or service
perceived value?creating the most effective and least expensive
For example if your customers expect yourform of advertising for your organization.
product to perform error free, to be delivered onAdditional advantages of developing a loyal
time, to be supported by timely and personalcustomer base is their willingness to pay more for
technical support, and to be properly billed at ayour product or service, and they are also more
fair price, you must be good in all categories toforgiving when your organization makes a
get an A, and you must be at least as good asmistake. Why? As loyal customers, they trust
your competitors. If you deliver a product thatyour organization and have faith that you are fair.
meets all of their design specifications but areMaking the strategic decision to create a loyal
unable to provide personal technical support, youcustomer base is one of the most important
failed in meeting an important criteria; therefore,commitments you can make to the success of
the perceived value will decrease. For every markyour organization. Your individual contribution is
you miss, the value as defined by youralso a large part of that success.
customers decreases and you slowly lose the