How To Calculate Customer Value, Satisfaction & Loyalty | Complete Guide

Recent Blogs

Customer Value is a primary part of marketing. Customer value means the value which the customer gives after taking service or after purchasing a product from a vendor.

Customer value is important as it helps in creating a brand image and also helps in promoting the brand for the better result. Customer loyalty helps in creating a trust of the brand towards its customers and there is little chance of shifting customer’s taste to another brand. The more customers are loyal towards a brand, the more positive views a brand gets.

In this article, we will read about Customer Value, Satisfaction, and Loyalty. These three terms are interlinked with each other. And to retain the consumers for a long time, brands use these three things. Like the company gives value to its customers by providing Good Quality Products, Packaging And  After Sales Service. Due to all these services, a brand is successfully to satisfy its customers about its product, and the customer will buy the company’s product in a repeated manner.

1) Customer Value

What is Customer Value? How to calculate Customer Value?

How can we understand the Customer Value?

You can only understand the Customer Value by providing your product or service to the customer, by giving them a good quality product, offering them a discount, assisting your customers with good after-sales service.  And you can calculate the customer value by this basic equation.

          CV = B/C

Here, CV – Customer Value,

            B  – Benefit, and             C – Cost 

If you provide value to your customers then, this is the best promotion of your brand or company to gain new customers. Giving Value to your customers is the only key. To give value to customers, you can do these practices with your customers.

  • Quality Product/ Service
  • Good Packaging 
  • After Sales Service
  • Give Good Customer Support on Every Platform 
  • Give Return or Replacement Support 
  • Provide Assistance

If you follow or take care above points then it’s the best thing ever done by a brand for the customers. In this modern world, people have become very intelligent, they seek every product alternative, according to their desires by comparing different products brands with different items. And thus purchases the best product from. This is why every big brand gives value to its customers like God.  The best example to understand Customer Value is by reading this blog on the Virgin group.

An Example of Customer Value Supposes you are a customer who wants to buy a mobile phone. What type of things you consider most before purchasing? Ask yourself! There are 2 companies in front of you.  One with the name  “XYZ” and another is “DEF” who are selling the mobile phone. Both companies have the same specifications on it.  XYZ’s company mobile phones have pricing of RS.10,000 and Company DEF’s mobile price is RS. 12000, But the Quality and After Sales Service of the company “XYZ” mobile is a little cheap & slow. 

  And the Quality of the company “DEF” mobile phone is above average and it also provides good After Sales Service and Assistance. So which company mobile phone would you like to have in your hands?

Customer Value, Loyalty & Satisfaction

2) Customer Satisfaction

If you are not able to satisfy your customers, then the chances of failure of your business/ company will become high.  In the language of marketing, Customer Satisfaction is called CSAT. How can we measure the Customer Satisfaction Level?  Does your product live up to the mark with customer expectations? 

3) How can we calculate Customer Satisfaction?

What is the total number of customers for your brand, and how many of those customers have given their ratings, or feedback to your product or service according to their satisfaction level? This calculation can give your Company’s Satisfaction Goal. To calculate Customer Satisfaction: (Total number of positive response/Total number of all responses) * 100

4) Why Customer Satisfaction is Important?

Customer Value

If you do not calculate or pay attention to customer satisfaction for your company, then you will not be able to keep track of those customers who love your product and who don’t love your product.

Whether your product is liked by your customers or they are not satisfied with your product. It also helps in keeping data of your customer behaviour which leads a product not to grow exponentially. And sooner or later it will be responsible for your business growth or company shut down. 

5) Customer Loyalty/Retention

Customer Value, Loyalty & Satisfaction

It has been found in a survey that a company spends 7X times more for acquiring a new consumer as compared to the loyal consumer. Consumer loyalty describes the behavior of repeat customers as well as offers good rating reviews/feedbacks on that brand’s product.

To understand this, let’s take a basic example of a buyer who owns a Harley Davidson bike. This buyer will never go to buy a Hero MotoCorp bike (exceptions are always there) because he/she knows the premium quality of parts that are assembled in Harley and most importantly the feel & experience that he/she gets while driving that bike.

6) How to Build Customer Loyalty?

To make a customer loyal to its brand, the company uses various types of tactics to attain this. Some of them are:-

  • Communicate

It simply means being in contact with the customer or occasionally communicating with them. Personally, messaging the brand on your birthday, providing discount passes for an upcoming event. The brand has to do all these things with the customer for communication.

  • Customer Service

   It describes the way to go to extra distance and find customer needs and train the staff to do the same as these things’ customers remember for a long time. It helps in making customer retention also.

  • Discount Offering

   Customers who frequently purchase from you, offer them a discount, thus making them a feeling that they are important. This will affect customers neuronally to buy that product again from you.

Customer Value, Loyalty & Satisfaction


If you have added gave value to your customer and they are also satisfied with your product and also they are loyal to product or brand, then it is possible that they do not take or use your product. Because there is a lot of competition in today’s modern world and the price-sensitive market. the customer will like to take the product of as maximum as cheap.

So, if you want to make your marketing Campaign Successfully always remember about Customer Value, Satisfaction & Loyalty.  So, this about Customer Value, Satisfaction, and Loyalty. I hope, you have enjoyed reading our blog. Stay tuned for another blog on a very exciting topic.


How can we understand the Customer Value?

You can only understand the Customer Value by providing your product or service to the customer, by giving them a good quality product.

How to Build Customer Loyalty?

There are three steps to build a loyal customer
Customer Service 
Discount Offering

How can we measure the Customer Satisfaction Level?

We can measure the satisfaction level by tracking and by asking for feedback.

Customer Value and Satisfaction?

You can only understand the Customer Value by providing your product or service to the customer, by giving them a good quality product. We can measure the satisfaction level by tracking and by asking for feedback.

Tags :
customer loyalty,customer satisfaction,customer value,how to calculate customer value
Share This :

Leave a Reply

Your email address will not be published. Required fields are marked *