{"id":991640,"date":"2026-04-16T13:47:11","date_gmt":"2026-04-16T13:47:11","guid":{"rendered":"https:\/\/customersx.ch\/definition-of-customer-value\/"},"modified":"2026-06-14T22:54:48","modified_gmt":"2026-06-14T22:54:48","slug":"definition-of-customer-value","status":"publish","type":"post","link":"https:\/\/customersx.ch\/en\/definition-of-customer-value\/","title":{"rendered":"Definition of customer value"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The dimension of customer-value-based decision making refers to decision-making that systematically increases the value for the customers, but also for the organisation. In the literature, a heterogeneous understanding of the terms has developed with regard to customer value. In addition, a very own understanding of these terms has become established in every organisation. In the following, it is important, for the definition of customer value, to make a conceptual distinction that is elementary for understanding and improving customer centricity. Customer value, in the understanding of customer centricity, is the customer-firm value. This is the juxtaposition of the value for the customer through the organisation with the value of the customer for the organisation. Since, so far, this combination has usually not been observed and people speak, in a simplified way, of customer value, we \u2014 against the backdrop of the existing understanding of the term \u2014 speak of customer-firm value instead of customer value, in order to emphasise the duality of the term. Customer-value-based decision making actually refers to customer-firm-value-based decision making.<\/p>\n\n<p class=\"wp-block-paragraph\"><em>The <strong>customer-firm value<\/strong> juxtaposes the value of the organisation for the customer with the value of the customer for the organisation. It serves as a decision basis for systematically increasing both the value for the customers and the value for the organisation.<\/em><\/p>\n\n<p class=\"wp-block-paragraph\">The customer-firm value is two-dimensional and the basis of customer-centric decision-making in an organisation, in order to increase an organisation&#8217;s growth and profit. It can be determined at an individual level or aggregated for the whole customer base. In practice, both the assessment of the value for the customers and the value for the organisation are usually carried out unsystematically, irregularly and in a methodologically undemanding way. In addition, the calculations are also rather rarely used for decision-making. Although much is said about customer centricity, in implementation an organisation&#8217;s customer-centric value management is carried out with the simplest instruments that exist. That the instruments used are then also more than 50 years old is commented on by quite a few with the words: &#8216;Exactly, it has proven its worth wonderfully&#8217;, or: &#8216;Just don&#8217;t introduce anything too complicated.&#8217;<\/p>\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" width=\"640\" height=\"393\" src=\"https:\/\/i0.wp.com\/customersx.ch\/wp-content\/uploads\/2026\/04\/Definition_Kundenwert.jpg?resize=640%2C393&#038;ssl=1\" alt=\"\" class=\"wp-image-987540\" srcset=\"https:\/\/i0.wp.com\/customersx.ch\/wp-content\/uploads\/2026\/04\/Definition_Kundenwert.jpg?resize=1024%2C628&amp;ssl=1 1024w, https:\/\/i0.wp.com\/customersx.ch\/wp-content\/uploads\/2026\/04\/Definition_Kundenwert.jpg?resize=300%2C184&amp;ssl=1 300w, https:\/\/i0.wp.com\/customersx.ch\/wp-content\/uploads\/2026\/04\/Definition_Kundenwert.jpg?resize=768%2C471&amp;ssl=1 768w, https:\/\/i0.wp.com\/customersx.ch\/wp-content\/uploads\/2026\/04\/Definition_Kundenwert.jpg?resize=1536%2C942&amp;ssl=1 1536w, https:\/\/i0.wp.com\/customersx.ch\/wp-content\/uploads\/2026\/04\/Definition_Kundenwert.jpg?resize=2048%2C1257&amp;ssl=1 2048w, https:\/\/i0.wp.com\/customersx.ch\/wp-content\/uploads\/2026\/04\/Definition_Kundenwert.jpg?w=1280&amp;ssl=1 1280w, https:\/\/i0.wp.com\/customersx.ch\/wp-content\/uploads\/2026\/04\/Definition_Kundenwert.jpg?w=1920&amp;ssl=1 1920w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n<p class=\"wp-block-paragraph\">For improving an organisation&#8217;s customer centricity, however, the use of a customer-firm-value model is absolutely necessary. The starting point for determining the customer-firm value is two different value constructs. Different customers deliver a different value contribution for an organisation. At many B2B organisations, 80% of revenue is generated with 20% of customers. Conversely, the benefit of an offering\/brand is judged differently by every individual customer. Beyond the pure system, it should be noted that the customer-firm value is not to be seen as a single transaction. It presupposes that an organisation understands a relationship with the customer over a period. The value understanding of customer centricity refers to the development of the relationship over time. This places high demands on data acquisition and use within decisions. So it is challenging for many organisations to determine the customer net benefit \u2014 in particular when there is no direct customer relationship and the sale takes place via a trading partner. It turns out in practice that organisations that face this challenge step by step are considerably more successful than organisations that bury their heads in the sand or launch overly ambitious projects in this area. Customer-value-based decision making is challenging, but an elementary foundation of customer centricity.<\/p>\n\n<h2 class=\"wp-block-heading\">Definition of customer value<\/h2>\n\n<p class=\"wp-block-paragraph\"><em><strong>Customer value<\/strong> describes the present value of a customer&#8217;s future profit<\/em><br\/><em>over the entire duration of their relationship with an organisation. The sum of all individual customer values of an organisation gives the customer equity.<\/em><\/p>\n\n<p class=\"wp-block-paragraph\">The definition of customer value presented shows that it is divided into two basic dimensions: the greatest possible increase in revenue and the greatest possible reduction in costs. Both are not possible with every customer. It is only important to note that this definition of customer value does not aim only at increasing revenue. While revenue data per customer is usually available, cost analysis is usually a major challenge in everyday business. From the organisation&#8217;s perspective, the customer-value calculation allows the targeted deployment of resources \u2014 whether the targeted deployment of salespeople, the individual offering of discount campaigns, the selection of customers to be invited to events, or the use of customer-relationship campaigns. Only by means of customer value does it become possible to estimate for which customers which measures are value-increasing from the organisation&#8217;s perspective. Customers no longer appear as a homogeneous mass, but are systematically assessed and made comparable. The use of a customer value is also so important in order to weight an organisation&#8217;s customer acquisition and retention as optimally as possible. The use of customer value offers an organisation a further advantage: it helps to foster the transformation of the organisation that is so important for customer centricity, and lays an important foundation for co-creation. In addition, a customer-value model can help to reduce tensions between departments, by contributing to more transparency in the assessment of employees, teams and departments. As a result, it is important to decide, with the model, which customers are won, how they should be worked on, and from which customers the organisation should part. In this context, the so-called &#8217;80:20&#8242; rule should be taken into account, especially in the B2B context. About 20% of customers account for 80% of total revenue. Despite these advantages, still the fewest organisations use a customer-value model for strategic and operational decision-making. In the context of customer centricity, customer value has no past-oriented revenue perspective. The term customer value refers to the future and is intended to help support decisions for an organisation&#8217;s future development.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The dimension of customer-value-based decision making refers to decision-making that systematically increases the value for the customers, but also for the organisation. In the literature, a heterogeneous understanding of the terms has developed with regard to customer value. In addition,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":991642,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[62],"tags":[],"class_list":["post-991640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-centricity"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Definition of customer value - CustomersX<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/customersx.ch\/en\/definition-of-customer-value\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Definition of customer value\" \/>\n<meta property=\"og:description\" content=\"The dimension of customer-value-based decision making refers to decision-making that systematically increases the value for the customers, but also for the organisation. 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