How to calculate the customer perceived value?
Once you have an idea of the benefits customers think a product has for them (and we’ll talk about how to figure this out in a moment), it’s quite easy to figure out what the customer perceived value of a product is.
All you need to do is use the following formula:
Customer Perceived Value = Total Perceived Benefits – Total Perceived Cost
Notice that you don’t simply subtract the cost of an item from the total perceived benefits, instead you subtract the “total perceived cost.” This is a small difference that takes into account the additional costs someone might experience when purchasing a product.
For instance, having to drive to a south africa consumer email list distant store to pick up a purchase increases the perceived cost, while free home delivery avoids that extra cost.
As you can see, CPV takes all the perceived costs and benefits to a consumer into account.
Why focus on customer perceived value?
There are a number of benefits to increasing the CPV of your products.
Think about some of the most famous brands in the world—don’t their products have a little “extra” value that makes people talk about them? It’s true for luxury fashion brands like Gucci and a tech companies like Apple.
Here are the 3 main benefits of having a strong customer perceived value:
1. More conversions and sales