5 Misconceptions About Customer Value
Many entrepreneurs claim they create value for customers. Few of them know what it means.
Strategy — map it out yourself
Many entrepreneurs claim they create value for customers. Few of them know what it means.
“There is no reason for any individual to have a computer in his home.” That was the phrase S Ken Olson, president and founder of Digital Equipment Corporation (DEC), said in 1977. Olson claimed that journalists took his words out of context. But it reflects his views on customer value, what the customers appreciate, and what not. It is an excellent example of a common mistake many businesspeople make, even as brilliant as Olson.
1. Customer needs ≠ customer value
A friend of mine childishly bought an expensive car — more costly than he could afford. What values did the car manufacturer create for him?
What is “customer value?”
There is no commonly accepted definition for this notion. Some authors believe, simply put, that “this is what customers want.” I’m afraid I have to disagree with this concept because there is another term for…