Customer service or price discount, which way works best for you?

Every business requires a marketing mission resulting in a clear identity, so the customers can select you for a specific reason. Most businesses have a blended, non specific identity, typically developed around the products they sell, the geography they serve and their marketing message, whatever that may be.

This can work but is more susceptible to competitor attack and less effective and thus should be reconsidered.

There are two specific strategies which tend to work the best which can be more effective then your more general approaches.

These are the two prime missions that can work for you, both work well however its up to you to determine which one will work best for you.

The first is extremely powerful and works very well for a large segment of the population and is highly recommended. It does not work for everyone or every situation, but it does have relevance to most every enterprise: Customer service.

There are two sides to the customer service equation. The first side is from within, customer service must be a corporate mission, an aggressive dedication, a total commitment that supports customer satisfaction. Your customers will never even consider going elsewhere, even if your pricing is higher then your competitors. Additionally your satisfied customers become your best advertisers and promoters and will spread the word with the very powerful force of word of mouth advertising. Others also desiring above average or make that phenomenal service will flock to your door.

Your pricing will be higher for two reasons.

Quality customer service does cost extra, and thus you must recapture this investment. Quality customer service supports higher pricing and thus greater profitability because the service is worth it to the consumer. The customers will willingly pay more for quality customer service, and you should capitalize on this approach for a better bottom line.

Quality customer service is part of a business plan strategy, designed from within and delivered impeccably, but that’s only half of the mission, to truly deliver quality customer service you need to be constantly talking and asking your customers about what they want, what worked and what did not work.

You must include your employees in the feedback and also be asking them the same questions as they are the closest to the customer and will have an important view of what works and what does not work.

What does quality customer service look like? Its different for every business thus the only guideline that will help you determine the objectives and the conclusions is the constant communication with satisfied and unsatisfied customers. Ask them they will tell you what they want.

This approach can be easily integrated into your current sales and marketing program.

The second approach is the price point approach. Utilizing discount to achieve volume. There is a huge market that wants to purchase at the lowest price possible. If you can deliver this you will capture a significant share of the market you are aiming at. This is harder then it appears, as discount must be considered seriously and delivered effectively.

You must ask what will draw the market to you? How much discount is required to do the job of attracting a larger client base. What will the best price point be for your product or service and for your customer and geographic and competitive market place to deliver the desired results? Do this well and your revenues will soar and your profitability, while a lower percentage will be satisfactory because of the volume.

Another way to deal with discount is to sell ala carte, with basic products or services being low but add on’s being far more profitable.

One point, which ever approach you take, deliver it to the fullest, do not hedge, it must be your total mission. A little customer service or a little discount will not work. It will cost you without you experiencing a meaningful return. Commit to one or the other and deliver it to the best of your ability.

Is there something in between? Must it be all or nothing? There is much room in between these parameters but a watered down effort yields little success. Most business owners land with both feet, somewhere in the middle delivering reasonable customer service but without a total commitment and being price competitive but not high or low… in the middle, similar to their competitors.

Decide before you open, or create a grand re-opening, if your changing your identity you must announce it clearly and loudly. Call for help 413-549-2966.