Your dog needs a grooming session. Do you go to the cheaper spot? Or the one that remembers your dog’s name, makes him feel at ease, and gives him a tasty treat for being such a good boy?
Many people would happily pay a bit more for that second option — because the benefits outweigh the costs.
That’s an example of customer value. If you want to earn loyalty, stand out from competitors, or stop customers from ghosting after one visit, you need to understand what your customers want — and how to deliver more of it.
This guide will help you do just that.
What is customer value?
Customer value is the perceived benefit of a product or service compared to its costs. It’s the answer to “Was this worth it?” from the customer’s perspective.
Some of the factors that create value for customers include:
- Quality of service: Was the work done well and with attention to detail?
- Experience: Was it easy to get help, schedule an appointment, or ask questions? Did the team act professionally?
- Outcome: Did the service or product deliver on its promises and meet the customer’s needs?
- Convenience: Was it easy to access the service — whether that means quick scheduling, flexible hours, or clear communication?
- Trust and reliability: Can customers depend on your business to deliver the same level of service every time?
So, how do you measure this value so you can boost it?
3 steps to measure customer value
The biggest challenge with measuring customer value is that it’s partly subjective. You can say your team was professional during a crisis. But it really only depends on how the customer feels.
You can still get a good estimate of how customers feel about your company using this customer value equation:
Customer Value = Perceived Benefits – Total Cost
Using this formula, follow these three practical steps to calculate customer value:
1. Ask simple questions to uncover what customers value (and don’t)
Your customer base is your best source of information. The key is to keep questions short, focused, and simple to answer. Otherwise, people might find the effort too much and not reply.
Here are some examples of questions you could ask:
- “What made you choose us over other service providers?”
- “How satisfied are you with your service today?”
- “Would you recommend us to a friend? Why or why not?”
- “What would make your experience even better next time?”
- “Was anything about your experience harder or more frustrating than expected?”
You can use surveys, calls, or follow-up texts to gather information. With OpenPhone, you can create templated messages to ask these questions faster. You can even schedule them to go out at a later time, for example, after your customer’s appointment.
Besides asking them directly, there are a few other ways to gather feedback and determine customer sentiment, like by looking at:
- Reviews
- Social media mentions
- Call recordings and transcripts
- Call drivers (the reasons why customers call)
2. Sort and quantify feedback
Once you’ve gathered the feedback, break it into two buckets:
- Benefits: These are the factors that make the overall customer experience worth it, like fast service, friendly staff, good location, or reliability.
- Costs: These are the challenges customers face, like long waiting times, high pricing, or a lack of communication.
Next, determine how much these data points affect customer perception by assigning each of them a value between one and five.
One means it’s a weak factor or rarely mentioned, while five means it’s strong at creating value or frequently brought up.
For example, if 80% of surveys mention fast responses as something they value, you would likely rank it as a four or five. But if the majority didn’t notice or care about fast responses, you might rank it as a one or two.
You don’t have to be exact — just make sure it’s consistent. Using the same approach across all items ensures fair ranking.
3. Determine if the benefits outweigh the costs
Now you can use the simple formula mentioned earlier to estimate the value created.
Customer Value = Perceived Benefits – Total Cost
Let’s say your feedback shows the following benefits:
- Local = 4
- High-quality work = 5
- Friendly staff = 4
That brings your total customer benefits score to 13.
If your costs are:
- Higher price = 3
- Longer wait times = 2
Then the total customer cost is 5.
So, your customer value is 13 – 5 = 8
Even though there are a few friction points, the overall score indicates that customers see a high value in your service. If the score were closer to or below zero, it would indicate that the experience isn’t worth the cost and you’re not meeting customer expectations.
This quick calculation helps you zoom out and see what’s working, what’s not, and what to improve.
Speaking of improvements, here’s how to deliver more value and have more satisfied customers:
8 ways to increase customer value in your growing business
Here are some ideas to make your customers feel valued:
1. Personalize the customer experience whenever possible
When customers feel known, not just served, it creates an emotional connection that sets you apart from competitors who treat them like a number.
According to Adobe, businesses that prioritize personalization see 23% higher new customer acquisitions, 17% higher referral rates, and 12% more repeat business than those that don’t.
Here’s how to provide personalized service:
- Remember and reference your customers’ names, service histories, and preferences.
- Tailor recommendations based on previous bookings or expressed interest.
- Send tailored text messages (like holiday texts) or offers on birthdays, anniversaries, and other significant milestones.
- Note and use the customer’s preferred communication method to make the interaction more comfortable and efficient.
If you’re an OpenPhone user, you and your team can jot down this information in your contact notes as you learn it. It’s included in every contact’s profile so you and your team members never miss an important detail.
2. Make it easy to do business with you
The less effort customers have to put into doing business with you, the more value they perceive.
To increase perceived value, identify and fix the small pain points in your process. Start by reviewing your customer feedback for anything that sounds like “It was hard to reach customer support” or “I didn’t know what to do.”
Here are some ways to create a more customer-oriented experience:
- Offer online booking with clear time windows.
- Send timely appointment reminder texts to reduce no-shows.
- Send appointment confirmation texts so customers are sure their booking went through and know what to expect.
- Make pricing, policies, and next steps easy to find.
- Offer multiple communication options to customers (including call and text).
3. Respond quickly, even if you don’t have the answer yet
Customers don’t just value solutions — they also value responsiveness. They want to know their request isn’t getting lost in the void and that someone on the other side has their backs. Responding to messages quickly can reassure customers that you are addressing them.
A quick “Hey! We got your message, and we’ll get back to you ASAP” shows that you’re on it. It builds trust and makes them feel cared for.
With OpenPhone, you can set up auto-reply texts for missed calls, voicemails, and after-hours messages.
You can also use Sona, our AI agent, which is available as an add-on to customers on every OpenPhone plan. Sona can answer common questions based on the information you provide, so callers get answers even when you’re busy. When Sona doesn’t have the answers, it can take a message so you can give the customer a callback when you’re free.
4. Help customers get more out of your service
Value doesn’t just come from what you deliver during the service — it also comes from what you help the customer do afterward. Helping them extend the benefit of your service increases customer satisfaction and strengthens loyalty.
Here are some ideas:
- Send care or maintenance tips after the job is done.
- Offer clear instructions on what to do next.
- Share do’s and don’ts to avoid future issues.
- Create a basic FAQ or checklist to guide them after the service.
5. Train your team to understand what customers care about most
When your team understands what customers value, they’re more likely to show up with the right attitude, focus on the right details, and deliver a better experience. It turns routine customer interactions into moments that build trust.
Start by coaching your team on the biggest opportunities you uncover in your customer feedback — whether that’s clearer communication, being on time, listening more, or resolving issues faster.
Use recordings and AI-powered call transcripts to make call coaching more impactful. Show what good (and not-so-good) sounds like. It’s easier to improve when people can hear what customers respond to — and what frustrates them.
6. Set clear expectations before the job starts
No one likes bad surprises – hidden fees or delayed delivery can create stress and reduce the value of your product or service. Setting clear expectations upfront helps customers feel in control and confident they’re getting what they paid for.
Before starting the job, clearly explain what’s included in your service, what it’ll cost, how long it’ll take, and any prep they need to do. Put it in writing if possible — customers appreciate the clarity, and it protects you, too, in case of any future misunderstandings.
Pro tip: If this conversation happens over a phone call, you can record it for reference and to potentially resolve confusion. just make sure you get permission from everyone involved to legally record phone calls.
7. Offer flexible service windows or callbacks
Not everyone has a life that fits neatly into a 9-5 schedule. Providing flexible scheduling shows that you respect your customers’ time and makes it easier for people with less flexibility, like working parents or caregivers.
Here are a few ways you can deliver flexible scheduling:
- Give customers a short arrival window
- Open up slightly extended hours once or twice a week (like early mornings or late evenings)
- Let customers request callback times based on their preferences
8. Proactively flag issues before they become problems
Customers want peace of mind. If you catch minor issues before they turn into major problems, they feel secure and see your service as more valuable.
For example, to create more proactive customer service, you can instruct staff to add a two-minute extra scan at the end of each job to look for red flags and potential problems.
If they find something, they can give customers a heads-up without pushing a sale. A simple “Hey, this is fine for now, but it might need attention soon” can be enough to make people feel cared for.
Instruct your team to make a note of these issues so they can revisit them on the next visit.
Providing customer value with OpenPhone
Customer value isn’t just about what you deliver — it’s about how easy, helpful, and worthwhile the experience was to your customer. The more clearly they see that value, the more likely they are to stick around, refer others, and choose you again.
OpenPhone helps you communicate clearly, respond quickly, and keep every customer interaction organized. Auto-replies let you set expectations and acknowledge customer requests even when you’re unavailable. Snippets can help scale written communication, and contact notes let you record customer details so you can offer more personalized service.
But that’s just the tip of the iceberg. Here’s how else OpenPhone supports growing businesses like yours:
- Shared phone numbers let teams collaborate without missing customer requests or duplicating work.
- CRM integrations sync call data and interactions and keep all customer info in one place, making follow-up easier and more personalized.
- AI call tagging automatically categorizes customer requests, pain points, or recurring issues, making it easier to spot what people value most and where your customer experience needs work.
Want to provide more value to customers today? Try OpenPhone with a seven-day free trial and see how it can grow your business.
FAQs
Customer value directly impacts word-of-mouth, customer loyalty, and repeat business. Some of the main benefits of customer value include:
– Higher customer lifetime value (CLV): CLV is a metric of how much a customer will spend during their relationship with you. Customers who see value in your service will spend more and stay longer.
– Higher customer retention and lower churn: When customers feel like they’re getting real value — not just decent service — they’re more likely to return instead of switching to a competitor.
– More referrals and positive word-of-mouth: Happy customers talk. The more value you provide, the more likely people are to recommend you to potential customers.
– Less pressure to compete on price: When customers trust the value you deliver, they’re less likely to shop around based on price alone.
The four types of customer value are:
– Functional value: The practical benefit your service provides — does it solve the problem effectively?
– Social value: The way your service makes customers feel connected, included, or seen in a positive light.
– Monetary value: Whether customers feel what they’re getting is worth what they’re paying.
– Emotional value: How your service makes people feel — safe, cared for, confident, or less stressed.
Customer value is the perceived worth of your product or service from the customer’s viewpoint. Customer lifetime value, on the other hand, is a business metric that estimates how much revenue a customer will bring in over the entire course of their relationship with you.
The two are closely connected: when a customer feels like your service is consistently worth it, they’re more likely to stick around, book again, and refer others. The longer and stronger that relationship, the higher their CLV.
Here’s a simple formula for calculating CLV:
CLV = Average Purchase Value × Average Purchase Frequency × Average Customer Lifespan
Let’s say you own a bookstore. If a customer spends $100 per visit, purchases books 4 times a year, and does so for 3 years, their lifetime value equals:
CLV = $100 × 4 × 3 = $1,200
A customer value proposition (CVP) is a clear statement that explains why someone should choose your business — what you offer, how it helps them, and why it’s better than other options. Some examples include tailored product recommendations, loyalty programs, or flexible service options.
