News: May 2011
Customers are becoming more value-conscious
Consumers of everything from retail products to business services are becoming more and more value-conscious as a result of the economic downturn. This has put downward pressure on prices which has resulted in many businesses cutting prices in order to remain competitive and maintain market share.
The customers of your business are in a money-saving mood but they aren’t willing to sacrifice on quality. This presents business owners with a new challenge – to maintain a quality product or service but offer more value to customers at the same time. Your business can take advantage of this focus on quality by minimizing price reductions and instead offer more “value added” services to customers. Since customers today are more focused on value for money you must make them feel like they have got more “bang for their buck”.
Take a management consultancy firm as an example. Instead of reducing their prices, they could offer more “value added” services free of charge to customers by offering a free 2-hour business strategy health-check. This health check could consist of a review of the current business plan, sales and marketing activities with a report being developed which shows the business which areas to focus on throughout the rest of the year.
The customer has now received extra value for the same price that they paid last year. The customer now feels that they have received value for money and the consultancy firm has managed to avoid cutting prices. Therefore the business and the customer benefit from the value-added approach.
As customers have become more focused on the value they get, more and more businesses have implemented this value added approach. Tesco have done it by offering mobile phone, car insurance and financial services in-store. 3 mobile have done it by offering unlimited data usage plans to mobile phone packages. Now it is your turn to give your customers a little value added extra and avoid cutting your prices at the same time.