Definition
Customer Value is the benefit perceived by a customer from using a product, service or solution in relation to its cost, time, risk and expectations.
Human Explanation
Customers judge value by the benefit they receive, not by how much work the organisation performed.
Why it Matters
Process design should increase Customer Value and remove activities that do not create it.
Conceptual Boundary
Customer Value is neither the price nor the production cost. It is assessed from the recipient's perspective.
Practical Perspective
Customer Value analysis helps prioritise Change, design Processes and identify work that creates real business Value.