Justifying prices: how to keep your customers happy and loyal
Sometimes dealing with customers (especially the difficult ones) can feel like an uphill battle, as though it’s you against them.
Although it seems like you’re on different pages at certain points, there’s one thing you always have in common with even the most exhausting of customers – you’re both trying to save yourself money.
Yup, there’s no denying it. There aren’t many of us who’re not feeling the pinch right now in both our professional and private lives.
Rising costs and slowing growth
Household costs are rising throughout the UK thanks to inflation, and that, in turn, is having a knock-on effect on national economic growth.
At least that’s what estimates from the first financial quarter are currently showing.
Final results are yet to be confirmed but it’s not looking good, with leading economists predicting that growth has halved over the past few months, dropping from 0.7 per cent to just 0.3 per cent in the last quarter.
The general overview is that growing prices are putting off customers, leading to a consumer slowdown that’s got some of the country’s biggest businesses worried.
Challenging the consumer slowdown
This consumer and economic slowdown is a tricky challenge to deal with.
After all, when your costs are rising, raising the prices of your goods or services is often the only option for keeping your business afloat.
But how do you justify your growing prices to cash-strapped customers? How do you keep a hold of them and maintain sales in such a difficult market?
It’s a complex issue that requires careful handling, but here are a few simple and important points about communication to keep in mind as you manoeuvre your business through the next few months. Take a look.
#1: be confident about changes
The ultimate trick to keeping customers on board with price changes is to be confident about the decisions you’re making. Since your staff will be the ones dealing with queries and complaints face-to-face, it’s essential you help them feel the same.
Follow the lead of companies like Nokia or Adobe and turn your employees into brand ambassadors, so they can communicate negative news (like rising prices) effectively and successfully.
And before you implement any changes, make sure your entire team knows exactly what’s going on and the reasons behind price restructuring.
#2: keep branding fresh and exciting
Want your customers to feel like they’re getting value for money, even when your prices are increasing? Then no matter what you’re selling, whether it’s a new product or not, always present it as exciting and fresh.
Take Tensor, the global manufacturer of floor adhesive, as an example. With product names like Bullet Bond, their branding, right down to the word choice and packaging colours used, is designed to entice customers.
If you’re similarly enthusiastic about your products and translate that excitement to your marketing, then customers won’t be able to resist getting caught up too.
#3: communicate changes clearly and honestly
Remember, you and your customers understand each other more than you think, especially when it comes to money. Don’t waste your time trying to hide price increases.
Instead, be candid about the changes you’re making and communicate them clearly. Your customers will appreciate your honesty.
Explain why your prices are going up and state when these changes will be implemented (giving at least 30 days’ notice) through your website and marketing. Look at how Netflix handled their price increases (with an informative email campaign) for some inspiration in managing this situation with flair.
Do you have any other top tips for keeping customers happy with price changes? Leave a comment and let us know.