What is customer perceived value?

Customer perceived value refers to a customer's overall assessment of the utility and benefits of a product or service based on what they receive compared to what they give. From a Jobs To Be Done perspective, perceived value specifically relates to how well customers believe a solution helps them execute their job-to-be-done relative to the cost, time, and effort required to obtain and use that solution.

Unlike objective value measurements, perceived value is subjective and exists in the mind of the customer. It represents the gap between what customers expect from a solution and what they experience when using it to accomplish their goals. This perception strongly influences purchasing decisions, willingness to pay, loyalty, and advocacy.

Why is customer perceived value important?

Customer perceived value drives key business outcomes in several ways:

1. Purchase decisions - Customers buy solutions they perceive will deliver the most value for their investment.
2. Price sensitivity - Higher perceived value reduces price sensitivity and enables premium pricing.
3. Loyalty and retention - When perceived value exceeds alternatives, customers remain loyal.
4. Word-of-mouth marketing - High perceived value motivates customers to recommend solutions to others.
5. Market differentiation - Distinct value perception creates competitive advantage that's difficult to replicate.

Understanding and influencing perceived value is therefore critical to product strategy, pricing, marketing, and overall business success.

What are the components of customer perceived value?

Perceived Benefits

The benefits customers believe they receive from a solution:

Functional Benefits

• How much the solution improves job execution speed
• How much it improves job execution accuracy
• How much it reduces effort required for the job
• How much it simplifies complex job steps
• How much it increases job completion consistency

Emotional Benefits

• Reduced anxiety about job outcomes
• Increased confidence in decision-making
• Elimination of frustration with processes
• Satisfaction from successful completion
• Excitement about new possibilities

Social Benefits

• Enhanced professional reputation
• Demonstrated expertise to peers
• Reinforced professional identity
• Facilitated connections with others
• Improved status within their community

Perceived Costs

What customers believe they must give up to obtain and use the solution:

Monetary Costs

• Purchase price
• Implementation costs
• Training costs
• Maintenance and support costs
• Upgrade costs

Non-Monetary Costs

• Time to learn and implement
• Effort to change existing processes
• Risk of unsuccessful implementation
• Psychological resistance to change
• Opportunity costs of not choosing alternatives

How does Jobs To Be Done improve understanding of perceived value?

Traditional approaches to understanding perceived value often focus on product attributes or abstract concepts like "quality." The Jobs To Be Done approach provides several advantages:

1. Connects value to progress

JTBD connects perceived value directly to the progress customers are trying to make in their lives or work. This reveals why certain features or attributes matter to customers, not just that they matter.

2. Clarifies value hierarchies

By mapping the job-to-be-done, companies can identify which job steps and needs create the most perceived value when addressed effectively. This hierarchy guides prioritization of product improvements and marketing messages.

3. Explains value perception variations

Different customer segments often perceive value differently because they struggle with different aspects of the job. JTBD research reveals these segment-specific perceptions and explains why they occur.

4. Predicts value perception changes

As customer jobs evolve due to technological, regulatory, or social changes, perceived value shifts accordingly. JTBD provides a framework for anticipating these shifts and adapting strategies proactively.

How do we measure customer perceived value?

Direct Measurement Approaches

These approaches explicitly ask customers about perceived value:

Value Assessment Surveys

• "How valuable is our solution in helping you [execute specific job step]?"
• "Compared to alternatives, how much better does our solution help you [complete job]?"
• "What specific aspects of our solution provide the most value to you?"
• "How well does the value you receive justify the price you pay?"

Trade-off Analysis

• Conjoint analysis to determine relative value of different job benefits
• Van Westendorp price sensitivity measurement to find value-optimal pricing
• Feature trade-off exercises to identify highest perceived value capabilities
• Willingness-to-pay surveys for specific job step improvements

Qualitative Value Exploration

• In-depth interviews exploring perceived value across job steps
• Customer journey mapping to identify high-value and low-value touchpoints
• Focus groups comparing value perceptions across competing solutions
• Observational research to identify unstated value perceptions

Indirect Measurement Approaches

These approaches infer perceived value from customer behavior:

Behavioral Value Indicators

• Renewal rates as indicators of sustained perceived value
• Usage patterns showing which capabilities deliver most perceived value
• Feature adoption rates revealing value prioritization
• Willingness to upgrade as a measure of incremental perceived value

Competitive Value Metrics

• Win/loss rates against specific competitors
• Competitive displacement trends
• Share of wallet within customer accounts
• Price premium sustainability compared to alternatives

Word-of-Mouth Indicators

• Referral rates and patterns
• User-generated content themes
• Social sharing behaviors
• Sentiment analysis of customer communications

How do we improve customer perceived value?

1. Address high-impact job steps

Focus product improvements on the job steps that:

• Cause the most customer struggle
• Have the highest importance to customers
• Create the most significant economic impact when improved
• Are most visibly improved by your solution

Addressing these high-impact steps creates the greatest perception of value.

2. Align value delivery with value communication

Ensure that marketing, sales, and customer success teams emphasize the same value elements:

• Highlight specific job steps and needs your solution addresses
• Use consistent language to describe value across all touchpoints
• Provide concrete examples of improved job execution
• Connect features explicitly to job outcomes

This alignment ensures customers recognize the value they receive.

3. Manage the value perception timeline

Different aspects of value become apparent at different stages of the customer journey:

• Pre-purchase: Focus on communicating potential value through demonstrations, case studies, and ROI projections
• Implementation: Emphasize early wins that create immediate perceived value
• Initial usage: Guide customers to high-value capabilities that deliver quick results
• Ongoing usage: Continually reveal additional value through education and enablement
• Renewal: Quantify delivered value through before/after comparisons

This timeline management maintains strong perceived value throughout the relationship.

4. Reduce perceived costs

Often overlooked, reducing perceived costs can dramatically improve overall perceived value:

• Simplify implementation and onboarding processes
• Provide better training and support resources
• Create smoother migration paths from existing solutions
• Eliminate unnecessary complexity in the user experience
• Offer flexible pricing models that align with value realization

These reductions in perceived costs improve the overall value equation.

5. Create value perception reinforcement

Systematically remind customers of the value they receive:

• Provide usage reports highlighting key metrics of job improvement
• Send regular communications about new capabilities that enhance value
• Create customer communities where value stories are shared
• Conduct periodic business reviews quantifying delivered value
• Celebrate customer success milestones related to job outcomes

This reinforcement prevents value perception erosion over time.

What are common customer perceived value challenges?

Value-delivery gap

When marketing promises value that the product doesn't fully deliver, customers experience disappointment that damages perceived value. Ensure marketing claims align with actual job execution improvements.

Value-recognition gap

Sometimes products deliver real value that customers fail to recognize. This often occurs when:

• Value is delivered in ways customers don't immediately notice
• Customers lack metrics to measure improvement
• The most valuable capabilities are underutilized
• Value accrues gradually rather than immediately

Value-attribution error

Customers may attribute value (or lack thereof) to the wrong aspects of a solution, leading to misguided product development and messaging. Research should verify which elements truly drive value perception.

Competitive value erosion

As competitors improve their offerings, relative perceived value can decline even when absolute value remains constant. Continuous competitive analysis is essential to maintain value differentiation.

Value perception fragmentation

Different stakeholders often perceive value differently based on their relationship to the job. In B2B contexts particularly, value perception may vary significantly between users, managers, and executives.

How does perceived value change across the customer lifecycle?

Prospect Stage

Prospects evaluate perceived value based on:

• Marketing messages and sales presentations
• Case studies and testimonials
• Product demonstrations and trials
• Comparison with current solutions and alternatives
• Expected ROI calculations

At this stage, value perception is largely anticipatory and based on promises rather than experience.

New Customer Stage

New customers reassess perceived value based on:

• Implementation experience
• Initial usage results
• Comparison to pre-purchase expectations
• Early wins and quick successes
• Support and training quality

Value perception is highly volatile during this period and significantly influences long-term relationship success.

Established Customer Stage

Established customers evaluate perceived value based on:

• Measurable improvements in job execution
• Integration into daily workflows
• Comparison with evolving alternatives
• Ongoing support and enhancement
• Total cost of ownership experience

At this stage, value perception becomes more stable but requires reinforcement to prevent erosion.

Renewal/Expansion Stage

At decision points, customers comprehensively reassess value based on:

• Quantifiable ROI over the relationship
• Evolution of their job requirements
• Competitive alternatives and switching costs
• Strategic alignment with future needs
• Relationship quality and trust

This reassessment determines whether the relationship continues, expands, or ends.

How thrv helps improve customer perceived value

thrv provides specialized tools and methodologies to help companies enhance customer perceived value through a Jobs To Be Done approach. The thrv platform enables companies to identify which job steps and needs most influence value perception, develop targeted improvements that enhance perceived benefits, and create communications that reinforce value recognition.

For companies struggling with commoditization, price pressure, or high churn, thrv's approach provides a clear path to enhanced perceived value based on a deeper understanding of customer jobs and needs. The result is stronger differentiation, higher pricing power, and more loyal customers—all derived from improved customer perceived value focused on job execution outcomes.