Good values come from different factors such as image or brand equity or return customer gets from purchasing your product or service. In recent years, customers are now choosing to buy products from a company, not because of price but because of ethical reasons. Businesses that use their value and customer service to drive sales, tend to have higher customer satisfaction. Competing on price means you have to drop or increase the price of your products compared to that of your competitors with may not suitable for your business. Below are some reasons why you should compete more on value and not price.
Nothing Is More Important Than Putting Customers First
One of the significant things that break the relationship of customers and companies is to replace excellent customer experience and comfort with technology. Customers want to get a good, caring, and reasonable person at the other end of the line every time they are trying to reach your business. If you sell at a reasonable price but have a bad customer service experience, consumers will prefer to pay more somewhere else where their purchase will be treated with more importance.
Low Prices Do Not Translate to the Best Value
A lot of big companies operate as if low price is the most significant factor in a customer’s purchase decision. Although this may be the case, sometimes other factors play a huge role in a buyer’s choice. Always offer the best quality products at the best price. Don’t worry about your cost not being the lowest price on some goods. If you are providing the best quality product, your customers will keep coming back regardless of the amount of the commodity. Remember that news of bad products spreads faster than that of a good one. Don’t compromise value for the price.
Customer Loyalty Is Invaluable
Customers loyalty to your brand worth more than you can imagine. Gain the trust of your customers, and they will keep coming back for more of your products regardless of the price. In a recent survey, Apple’s iPhone has up to twice the loyalty of their next highest competitor. Starbucks customers are very loyal to the coffee chain. These two companies were able to add something to their product that brings a positive experience to their customer’s lives. They both have excellent customer service and high quality products. Despite the high price of their products, they were able to rise above the competition by differentiating themselves and adding value to the customers experience.
Consistency Is Key
Changing the pricing structure for your products brings about a challenge for both your customers as it can effect their margins, sales and expenses. Be sure to have available stock of your product. Delivering half of an order is unacceptable. Customers are going to be upset they didn’t receive their full order and this will make them lose trust in your company. Customers expect the same results every time you deliver, so meet or exceed their expectations.
The truth about business is that there will never seize to be competition. By sticking to your goals and with proper strategy your rivals will reduce in size and numbers. Don’t chase competition look for captivating ways to dazzle your customer and your company will become invaluable to them.