How To Measure customer Value
Personal Development
By Kay Fitzgerald
Published November 14, 2020
Customer value is the measure of your customers preference for a product or service
Customer value will determine whether your customer feels they received value for what they paid for the product or service
We normally measure value using three scales:
- Market share
- Customer share
- Customer lifetime value
Scales
Three
This relates to how many high-value customers does the company have from the marketplace.
Share
Market
How much of the "spend" of the high-value customers do you actually have?
Share
Customer
How long will the customer stay with you and how much are they worth to you over that time?
Lifetime Value
Customer
Let's Now introduce two metrics used to assess customer value
Most valuable customers, or MVC, are the customers that are the most profitable for the company.
Customer
Most Valuable
Most growable customers, or MGC, are the customers that may have little value at the moment but have considerable potential.
Customer
Most Growable
How long will the customer stay with you and how much are they worth to you over that time?
Lifetime Value
Most Valuable
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