In this highly competitive world, pricing on a slightly higher side can often throw your customers off and drive them towards your competition. This can be a sticky situation for even the best of marketers. But what really, is the solution to this?
Simple. The solution is to compete over value, and not price. Before you can do that though, it is important to show your customers how valuable your product or service is to them. When you sell on value, price no longer remains the issue. The tough part is, to get your patrons to see your value, and this is where most marketers fail. So how do you tell people how amazing your product/service is, and how do you get them to see the value? Here’s how.
Stop Chasing Customers
What’s the difference between Apple and Nokia? While Nokia advertised heavily, and sold their phones in all price segments, Apple continued to maintain its niche image and never went pandering. It didn’t do a lot of promotions and advertisements, it never chased anyone, allowing their products to speak for themselves. Instead of having huge marketing budgets, you could invest more in making your product so great, that people would want to buy from you, no matter how your competitors price or position their products.
Learn What Drives Value
Value can come from both tangible and intangible factors. Tangible factors include the financial or other measurable benefits that your customer gets from using your product or service, and the intangible factors include brand equity, and brand image. Let your customers understand that the lowest price may not always signify the highest value and that there are some things that are even more important than price. Making a compelling promise, that is driven by benefits not by price, is the key to letting people know what to expect from your product/ service.
Consistency is King
You want to know what is the mantra for success? If you look at all successful brands, you will see one thing common to all of them – consistency. These brands consistently provide high quality, high value products and services to their customers. Do not regard your customers as one dimensional money savers. Most people are ready to pay highly for products and services that provide them good value. If you have made any promises, make sure that you deliver on them every time – if you don’t, do everything in your power to fix the situation.
Learn Your Target Audience Inside Out
If you want to compete successfully on value, learn everything you can about your target audiences. Ask pointed questions such as – who will use your product or service and how will they use it, will your product or service replace some other, how do your prospective customers make their decisions, are there any pain points that need to be addressed and does your product or service address them? Besides getting this information, you should also get as much information as you can about your competition. This would help you keep one step ahead of them.
Ultimately, how you position your product or service, is very important and if you have a good brand image to back your products and services, it would be even more beneficial to you.