The 8 Principles of Customer Value Creation

To appreciate Customer Value Creation, you must understand the principles of Customer Value Creation. The principles of Customer Value Creation, enunciated by Gautam Mahajan are:

The 1st Principle: Customers tend to buy or use those products or services that they perceive create greater value for them than competitive offers. It is essential for executives and leaders to create higher value for their Customers than competition can.

 The 2nd Principle: Customer Value Creation is applicable in all fields, such as business, service, education and academics, society and government, social work, innovation and entrepreneurship. It impacts humanity.

 The 3rd Principle: Customer Value Creation touches all stakeholders, you, your colleagues, your employees, your partners (supply chain, delivery chain, and unions), and society to create resounding value for the Customer and thereby for the shareholder. It is the source for creating Customers and retaining existing ones, increasing loyalty, market share and profits

The 4th Principle: Customer Value Creation is proactively exceeding what is basically expected of you or your job and is going beyond your functional and routine roles to creating value in your eco-system. Value creation can be planned or spontaneous, and in both functional and emotional thinking

 The 5th Principle: Customer Value Creation leverages a person’s or an organisation’s potential, learning and creativity while making it meaningful and worthwhile for people to belong and perform, both physically and emotionally

 The 6th Principle: Customer Value Creation presents a very powerful decision making tool for companies to decide on actions, programs, strategies for the Customer that can increase the company’s longevity and profitability.

 The 7th Principle: Value Creation must exceed Value destruction or reduce negative value and be done consciously (not just unconsciously)

 The 8th Principle: Values (what you stand for, integrity, honesty, fairness etc.) creates Customer Value (that is Customers Value your Values)

 These principles form the foundation of the Customer Value Creation strategy and implementation, resulting in great value for you and your company.


Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.

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2 Comments on “The 8 Principles of Customer Value Creation”

  1. @dnewtondines Says:

    Re #4. The reality in the 21st century is that you DO NOT have to exceed expectations (after all, this normally has some kind of cost).

    The reality for 21st century businesses is that the 2 acts of properly listening and then doing what you’ve said you will do will set you head and shoulders above your competition.

    Yes, a customers’ life is so poor today that just reading the fly sheet of The Book of Customer Service delivers bottom line benefits… How sad.

  2. sorry but i believe there should be only one value per person/customer before principles begin. Each person should be at least allocated a number 1 in Public Social Value pre tax payer lost in the realm of The Awful Welfare State of United Kingdom. I am especially cross with my country and having to live below pre “Maslow” . very bad state of affairs here. what do you think Donald Trump with all your cash? do you wanna spare some because i have paid fiscal twenty times over and i still aint famous. Jayne Kerry Laville-Cross

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