While customers may sometimes shop based on price, high-quality customer service creates loyalty. With some establishments having lower foot traffic, businesses will lower prices to bring people into the store. However, the prices are not the only thing a customer looks at when making a purchase.
Customers have a choice of where to spend their money. Should they spend it with whichever business has the lowest prices?
Those that hunt for the lowest prices and consider the product's or service’s price to be a huge factor in their decision are price sensitive. Some feel that a low price is too good to be true and will pass on making a purchase. Others look for the lowest price possible, even if it means they end up with a more inferior product or service.
Customers will shop on price if it’s the only thing separating them from the competition. But what other factors do customers weigh?
Customers who are emotionally connected to your business or brand will be your most profitable customers. They are loyal, care less about price, and will go out of their way to shop at your establishment.
Having good sales people that fully understand your products and services can help drive customer engagement. Customers won’t care as much about price if your service is impeccable.
Differentiating from the Competition
What can you do to stand out from the competition so that you’re not competing solely on price?
- Does your competition employ better sales staff? You could implement regular training for sales reps to stay on top of changes in products and services. You can also create an environment that makes your employees feel like an asset to the organization, not just overhead. When staff feels encouraged and part of a team, they know they are valued and are willing to work hard toward the success of the company.
- Is your competition better positioned in the marketplace? What can your business do to better position itself in the marketplace, so competitors perceive that your product or service is the clear choice? Think about what makes your company unique and what strengths you have compared to your competitors. What can you do differently or change to set your business apart?
- How well can your staff members anticipate objections? By having more in-depth knowledge of your products and services, as well as those of your competitors, staff will be able to answer questions quickly and accurately so that your customers can make the best-informed decision.
Voice of Customer (VOC) Data
What if you knew exactly what your customers want and need? Voice of Customer (VOC) Data is a marketing research technique that captures what your customers expect, what their preferences are, and what they don’t like. Data is gathered based on the customer’s experiences with your products and alternative products that they may consider from your competitors.
Do your competitors have higher quality products and services? Do they have better customer service? VOC data can provide you with practical ideas on how to best stand out from the competition.
How do you differentiate from the competition? Do you want to learn what your competitors are doing that you could be doing better? What if you could visit or call your competitors to see how your business compares? Learn how Shoppers’ View can help!