What would happen if you were just a little higher priced than your competitor? How would your customers react? Would your loyal customers continue to do business with you in spite of your higher price? Unless your strategy is always to be the lowest price, one would hope the answer to the last question is, […]
What would happen if you were just a little higher priced than your competitor? How would your customers react? Would your loyal customers continue to do business with you in spite of your higher price?
Unless your strategy is always to be the lowest price, one would hope the answer to the last question is, “Yes!”
These questions come from a conversation I was having with a client that resulted in me asking the question, “Do you think your customers are more loyal to your company or your price?”
The client said, “I hope they are happy with our company, in spite of our price.”
I said, “Hope is not a strategy. You should know why your customers are loyal to you.”
By the way, and this is important if your strategy is to be the lowest price, that’s okay. This client knew his company couldn’t compete on price, so our conversation then focused on how he could compete.
With either of these two customer categories, there is a simple key to being successful, summed up in one word:
If you are a low price provider, you must be consistent. Wal-Mart, Costco, Home Depot and other big box stores are known for low prices. If they don’t stay competitive in that chosen area, the customer will find another place to get a lower price.
If you deliver value in the form of the areas previously mentioned, it better be consistent. Nordstrom and Apple are companies known for delivering a consistent above-average customer experience. And customers are willing to pay more for it. Consistency creates confidence and in turn creates loyalty. Realize one or two missteps and the customer will go to a competitor.
You may have noticed that I used the word consistent. All of this is about being purposeful in defining and delivering the value proposition to your customer. What does the customer want? Is it just low prices, or is it customer service? Or is it quality? Is it the experience? Whatever it is, work to be the best at it. Most important, be consistent about it. And when I ask you if your customer is loyal to your company or your price, you’ll know the answer.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com. Connect with Shep on LinkedIn.
(Copyright ©MMXIII, Shep Hyken)
Sign up for instant access to Shep’s research report on customer service and customer experience.
"*" indicates required fields
© 2023 Shepard Presentations, LLC. All Rights Reserved.
Legal Information | Sitemap | Site by: digitalONDA
Legal Information | Sitemap Legap
Site by: digitalONDA