Why Compete on Value Over Price
When faced with stiff competition or when sales dip, most businesses tend to either drop their rates or lower their prices. Here’s the thing: more and more customers are looking for factors other than price when deciding whether to buy from a brand or not. Customer experience, quality, and consistency can work for you so you can stand out in a sea of competition. This is a powerful opportunity and market shift for business with strong values.
With that said, business with values that resonate well with their target market is highly likely to benefit from increased customer loyalty and word-of-mouth marketing. Which begs the question: why would a business compete on value, as opposed to on price?
Price is not always the key decision factor
Many large independent retailers often mistakenly run their businesses are though the absolute lowest price is the most crucial factor in customer’s decision-making journal. They couldn’t be farther from the truth. For one, the lowest price doesn’t always translate to the best value, but most customers are looking for the latter when it comes to buying decision. This is evident in the fact that even in tough economic times; customers are still flocking to brands who offer the best value. If anything, price-oriented customers are only loyal to the rock-bottom price, regardless of who offers it.
Competing on value is putting the customer first
Businesses that operate on value-based systems often put customer’s comfort and experience first and foremost. That’s not the same thing as efficiency and technology. Customers want personalized and first-rate services. When they call a retailer, they want to find a caring, thinking, live person on the other side of the line, 24/7, 365 days a year.
Value builds customer loyalty
Every business knows that the value of having a long list of returning customers is absolute but the bitter truth is that building customer loyalty is never a walk in the park. You need to work tirelessly to engage and entice the customer to encourage repeat purchases. However, offering value to the customer can make the whole process effortlessly easy.
Offering value allows businesses to be consistent
Consistency is king when it comes to providing more value to the customer instead of focusing on the price only. In fact, consistency says a lot about your business. By paying more attention to value, your pricing can remain steady and predictable, allowing customers to budget for their spending accordingly.
Customers who look at value instead of price having more money to spend
The last thing you want to do in the world of business is to spend oodles of marketing dollars on a customer that has no money to spend on your product or service. By focusing on value, you will be able to weed out non-paying customers. You want to forge a long-term relationship with customers who can offer lifetime value to your business.
Customers are much more than one-dimensional money savers. They want to do business with suppliers who not only serve their needs, by also match their values.