Ever heard the phrase “one person’s trash is another person’s treasure” or “value is in the eye of the beholder”? These sayings highlight a truth often overlooked in business: value is subjective. What one customer sees as essential, another may view as irrelevant. Yet many companies cling to rigid, standardized KPIs like Customer Lifetime Value (CLV) as the ultimate measure of success. While CLV provides insights into profitability, it tells you little about the emotional, relational, or aspirational value your brand delivers. It reduces customers to numbers, ignoring the rich tapestry of individual needs, beliefs, and motivations that define their relationship with your business.
Customer value is a deceptively simple concept. Most businesses think they understand it because they associate it with profitability or revenue generation. But value, in its truest sense, is multifaceted. It’s not just about the bottom line; it’s about what matters to your customer, what drives their decisions, and what keeps them coming back, not just to buy, but to believe.
Value as Profitability: A Limited View
Let’s address the elephant in the room: profitability. Businesses exist to make money, and it’s tempting to define customer value solely by the revenue a customer generates over their lifetime. This focus is the driving force behind metrics like Customer Lifetime Value (CLV).
But here’s the problem: if you only see customers as dollar signs, you miss the bigger picture. You overlook the deeper connections, emotional loyalty, and advocacy from treating customers as people, not numbers.
Consider Customer Success Managers (CSMs). Their role isn’t to sell more products but to create value for the customer. They solve problems, provide guidance, and ensure customers get the most out of their purchases. The result? Customers feel supported and understood. They’re more likely to stay loyal, recommend the brand, and expand their relationship. The financial benefits follow but are a byproduct, not the primary goal.
Profitability should never be the starting point for customer value in a customer-centric organization. It’s the outcome of doing everything else right.
Value as Perception: What It’s Worth to Them
Value isn’t just what a product or service costs, it’s what it’s worth to the customer. This subjective worth varies based on individual needs, priorities, and circumstances.
For example, a $5 coffee from a premium café might feel like an indulgent treat to one person but a ridiculous expense to another. The café’s job isn’t to convince everyone that the coffee is worth $5; it’s to ensure that the customers who value that experience feel it’s worth every penny.
Understanding perceived value requires empathy. It’s about stepping into the customer’s shoes and asking:
- What problem are they trying to solve?
- How does this product or service make their life easier or more enjoyable?
- What makes this offering different from others they could choose?
Perceived value is about relevance. If your product solves a unique pain point or provides a memorable experience, customers will see it as valuable, even if it costs more. Businesses focusing on perceived value create loyal customers who feel they’re getting more than they’re paying for.
Value as Appreciation: The Human Connection
Customers want to feel valued and putting the customer first helps them feel valued. They want to know their loyalty and business are appreciated, not taken for granted. This form of value isn’t transactional; it’s relational.
Appreciation shows up in the small, human moments. A thank-you email after a purchase. A handwritten note from a customer success team. A proactive check-in to see how a customer is doing, with no agenda beyond showing care.
These gestures don’t directly generate revenue, but they create emotional loyalty. When customers feel valued, they’re more likely to stay, spend more, and advocate for your brand.
This is where many organizations stumble. They focus so heavily on scaling automation and efficiency that they lose the human touch. However, the brands that succeed in building appreciation in their customer relationships stand out because they feel real. They remind customers that behind the brand are people who care.
Value as Alignment: Shared Beliefs
In today’s world, customers don’t just buy products, they buy into brands. They want to support companies that align with their beliefs, values, and priorities.
This dimension of customer value is about shared purpose. The connection forms when customers feel a company stands for something they believe in. It’s why a brand like Patagonia inspires fierce loyalty, not just because their products are great, but because their commitment to sustainability resonates with their customers’ values.
Building this kind of value requires authenticity. Customers can spot inauthenticity a mile away, and trust erodes quickly when a brand’s actions don’t align with its stated values.
If you want to create value through alignment, ask yourself:
- What does our company stand for?
- How do our values show up in our products, services, and operations?
- Are we communicating these values clearly to our customers?
When customers see their beliefs reflected in your brand, they don’t just buy, they become advocates, partners, and champions of your mission.
The Customer-Centric Perspective on Value
In a customer-centric organization, these value dimensions, profitability, perception, appreciation, and alignment, don’t exist in isolation. They’re interconnected, creating a holistic understanding of what it means to serve your customers.
The profitable perspective should always be the least important. Focusing purely on extracting value from customers will never build the loyalty, trust, and emotional connections that drive long-term success.
Instead, start with the customer. Create value that is meaningful to them. Show that you appreciate their business and trust. Align with their beliefs and aspirations. These are the elements that foster relationships, and those relationships are what ultimately lead to financial success.
Value in Action: Examples of Value Creation
Let’s look at a few examples of how companies create value across these dimensions:
- Apple‘s perceived value lies in its simplicity and innovation. Customers believe their products make life easier and more creative. However, Apple also builds appreciation through seamless support, beautifully designed packaging, and premium experiences at every touchpoint.
- Starbucks doesn’t just sell coffee, it sells a sense of belonging. Its value comes from creating a “third place” where customers can connect, relax, or work. The brand’s commitment to ethical sourcing also aligns with customers who value sustainability.
- Zappos thrives on appreciation. Its legendary customer service, no-questions-asked return policy, and proactive communication make customers feel valued. They don’t just sell shoes, they deliver happiness.
Redefining Value for Your Organization
To embrace the full spectrum of customer value, businesses must move beyond short-term metrics and think long-term. Here’s how:
- Shift Your Mindset: Treat profitability as an outcome, not a goal. Focus on creating value that resonates with your customers.
- Listen to Your Customers: Use feedback, data, and direct interactions to understand what matters most to them.
- Invest in Relationships: Go beyond transactions to build emotional connections. Show appreciation consistently, not just when it’s convenient.
- Be Authentic: Live your brand’s values in everything you do. Align your actions with the beliefs of your customers.
When you redefine value from a customer-centric perspective, you don’t just create happy customers, you create loyal, lifelong relationships.
Final Thoughts
Customer value is not a single metric or a one-size-fits-all strategy. It’s a rich, multidimensional concept that requires businesses to think beyond profitability and into meaning, appreciation, and alignment.
When you prioritize the customer’s experience, emotions, and beliefs, you unlock value that transcends dollars and cents. You create lasting connections, relationships, and customers who don’t just buy, they believe.
So ask yourself: How is your organization defining value? And more importantly, how are you delivering it? The answers will shape the future of your business, and your relationship with the people who matter most.
Ready to make your business more valuable? Let’s kickstart a workshop to show your team how it is done.