Value perception

We’re excited to welcome you to the newly reimagined version of our website—a space built with business owners / managers in mind.

This blog marks the beginning of a renewed commitment: to consistently offer value to our visitors—whether you’re a client, a collaborator, or simply curious. We believe that meaningful insights can spark better decisions, stronger businesses, and lasting success.

To kick off this journey, we’re focusing on a concept that sits at the heart of every thriving business: Customer Value.

One of the most important pillars of our consulting and facilitation business—is our inclination and the ability to understand and manage customer value. It’s not just a marketing buzzword for us; it’s the foundation of sustained business growth and client satisfaction.

Put simply, customer value is the trade-off between the benefits customers believe they’re receiving and the costs they associate with gaining those benefits—adjusted for the level of risk they perceive in making that choice.

The following formula is a helpful way to visualize Customer Value:

Customer Value = (1 – Perceived Risk) × (Perceived Benefits – Perceived Life-Cycle Costs)

Let’s break it down:

• Perceived Benefits are everything the customer finds valuable in the offering—whether it’s performance, convenience, brand reputation, or emotional satisfaction.

• Perceived Life-Cycle Costs go beyond the price tag. They include time, effort, maintenance, and even the cost of switching from another provider.

• Perceived Risk reflects the uncertainty customers feel: “Will this work for me? Will it deliver what was promised?” Risk could be emotional, financial, or functional.

When perceived benefits are high, and life-cycle costs and risks are low, customer value is at its peak. This makes the offering more attractive and increases the likelihood of selection and long-term loyalty.

Customer value may sound easy and redundant. It is very elusive and often gets misunderstood. For business owners, understanding customer value is critical. It’s not enough to be the cheapest or the most feature-rich. You need to deliver meaningful benefits, minimize hidden costs, and build trust to reduce perceived risk.

In a nutshell, customer value is how your offering makes your customer feel: confident, satisfied, and that they made a smart choice.

We hope you enjoyed this blog and found insights that resonate with your business journey. If you’d like to explore these ideas further or need support in applying them to your specific context, we’re here to help.

Feel free to book a meeting with us or write to us in margatreya@gmail.com 
We’d be delighted to connect.