# What Customers Really Value

> Executives prioritize wrong customer needs due to behavioral biases, cutting costs and boosting revenue with data-driven focus.
- Title: What Customers Really Value · Harvard Business Review
- Summary: Executives prioritize wrong customer needs due to behavioral biases, cutting costs and boosting revenue with data-driven focus. Companies using statistical…
- Keywords: customer value, statistical models, executive bias, revenue growth, margins, sales strategy, data-driven decisions, customer satisfaction, value drivers, lift potential, business, management
- Source: Harvard Business Review — https://hbr.org/2026/11/do-you-know-what-your-customers-value
- Author: Vikas Mittal
- Published: 2026-11-01T04:00:00+00:00
- Read time: 1 min
- Topics: customer value, statistical models, executive bias, revenue growth, margins, sales strategy, data-driven decisions, customer satisfaction, value drivers, lift potential, business, management
## The Problem
Most executives think they understand customer needs but rely on intuition instead of data.
## Executive Confidence
CEOs claim they meet customers monthly and monitor competitors closely to stay ahead.

> Our sales team meets with key accounts monthly and responds immediately to their needs.
## The Study
Researchers studied 72 companies across industries with $10m to $20bn revenue over seven years.
## What Executives Get Wrong
93% of companies spend 4-12 hours weekly gathering customer feedback but misinterpret it.
## Customer Priorities
Employees list quality, service, sustainability, and competitive price as top customer values.

> quality (100%), service (100%), sustainability (100%), competitive price (98%)
## Executive Missteps
Executives prioritize wrong drivers, leading to shifting strategies and poor customer outcomes.
## The Fix
Use statistical models to identify high-impact customer value drivers and align strategy around them.
## Step 1: Surface Misalignment
ITI Manufacturing cut initiatives from 65+ phrases to focus on two key customer value drivers.
## Step 2: Determine Lift Potential
ITI found communication and ongoing support drove 9.8% sales growth potential.
## Step 3: Incorporate Daily Work
ITI integrated weekly customer updates into every employee’s job description.
## Step 4: Cut Non-Value Activities
ITI reduced sales per employee time from 17% to 19.3% above industry peers in four years.
## Step 5: Market After Execution
ITI waited to market its strategy until it achieved weekly updates and issue resolution.
## Results
ITI increased sales by 19.3% above industry peers and margins by 43% in four years.
## S-SET Case
S-SET cut quoting time from 18 hours to under five hours through focused initiatives.
## The Science
Statistical models outperform intuition in identifying what truly drives customer value.
## The Bottom Line
Companies using data-driven strategies see 9.8% sales growth and 43% margin improvements.
## Key takeaway

Companies using statistical models to identify key customer value drivers improve sales by 9.8% and margins by 43%.