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Glossary > Value Gap

Value Gap

Value Gap is the difference between the value that consumers receive from a product or service and the price they pay for it. It’s a measure of how much value a company is delivering to its customers, compared to the cost of delivering that value.

Value Gap is an important concept in business because it helps companies understand what customers really want and how much they’re willing to pay for it. In other words, Value Gap helps companies figure out how to deliver more value without charging more money.

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Similar Terms:

Customer Experience (CX)
Annual Contract Value (ACV)
Customer Lifetime Value (CLTV or CLV)
Lifetime Value (LTV)

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