Introduction
With a wonderful product or service comes another challenge, which is price. The cost of doing business might fluctuate over time, so you must constantly review, monitor, and adjust your prices. Communicating pricing increases to customers is a vital element of expanding your business. Here is how you can announce raising the prices of your product, how you can respond to customers about poor price performance, and why their reviews matter.
Poor Price Performance
Poor price performance typically refers to a situation where a product or service isn’t selling as well as expected due to its pricing strategy. There can be multiple reasons for it, and can be identified via these signs.
- Low sales volume
- Excess unsold stock
- Customer price sensitivity
- Lower profit margins
- Frequent discounts
There are multiple ways to tackle poor price performance and avoid this problem in the first place. Let’s learn in the coming sections.
How Do You Announce a Price Raise for Your Product?
Whenever you want to raise the price of your product or services, you have to do it in a way that won’t cost you your customers. You can follow these steps to raise the price of your products or services:
Announce with short advance notice
You do not want to scare the customers away by proposing a price hike all at once. Instead, give them enough advance warning to budget for the change or decide whether they want to continue buying from you. You should also avoid using language like “raise” or “increase,” which may make customers believe that your brand is changing and becoming like other brands. Give them points of price rise so they don’t compare you to other brands and continue purchasing from you.
Tell them the reason for the price rise
People frequently feel cheated off when they are charged more than they believe they should be. They will protest, make excuses, and attempt to bargain the price down. However, there is a proper approach to conveying price hikes to customers, and it is not to tell them what they want to hear. You can do it by telling them why the price increased, how much value it delivers, and how you can help them get more of that value for less.
Check other alternatives
When you think of raising prices, it’s easy to charge more and hope for the best simply. However, there are numerous strategies to manage a price change without offending or losing regular buyers. You might be able to offer them something additional for the same price or an incentive to purchase now rather than later. You may also make it obvious that this is an experiment and that customers can return their money if they are dissatisfied with the new pricing arrangement. The point is before you notify them that their product will cost more, go over all conceivable options with them so that everyone is comfortable with the adjustment.
Get their feedback and respond appropriately
When you need to raise your pricing, you don’t want to offend customers. That’s why it’s essential to listen to their opinions and respond properly. If they are concerned about the price increase, attempt to explain why it is necessary. It can be good to show them the statistics that support your judgment. That way, they’ll understand why you are raising your prices and will continue purchasing from your brand.
How to Respond to Negative Reviews on Poor Price Performance?
Customers always leave and stop purchasing from a brand that keeps on changing prices. They consider it as poor price performance. This means that brands keep on changing prices or suddenly charge higher prices for their products. They won’t like it and will give you reviews. Here is how you can respond to them:
Apologize them
Everyone wants to reply from the brand about the review they gave. When they complain about your brand’s poor price performance, you can apologize to them first. Tell them why you increased prices and how your product needed a price rise. Show them some proof and differentiating points about the product. This will help them understand why you raised the price. Never disparage the reviewer or become defensive.
Respond to them by their names
With so much online brand fame, customers value genuineness. Whenever they complain to you about your poor price performance, refer to the customer by name in your response. Explain to them the reason behind it. Also, avoid drafting ready-made comments that are copied and pasted for each unfavorable review. Even if your primary message remains the same over numerous reviews, change some words and sentences to make them feel genuineness about your product.
Respond as soon as possible
Respond to negative comments as fast as possible. Showing a feeling of urgency will increase consumer trust and communicate to future shoppers that you care. Make careful to respond to bad reviews within 24 to 48 hours. Explain to every customer why you changed prices and how it will favor both of them.
Explain valid points about the product
The most effective communications are short and basic. Say too much, and you may deviate from your brand identity. Including too many facts can overwhelm the buyer and make you appear defensive or desperate. Don’t include any follow-up questions in your response, either.
Ask for other problems
Whenever a customer makes a complaint, always tell them that if they have any other questions or problems, they can contact you. If they give you a review of your poor price performance, you can explain the reason behind it to them and tell them some positives about your brand. Also, ask them to check your product once so that they can understand why prices have been raised. This will make them rethink their decision and try your high-priced product.
Why Customer Reviews Matter?
When you respond to negative reviews from customers about the poor price performance of your brand, you establish yourself as a company that cares. It demonstrates that you are listening to your customers and taking the time to resolve their issues and improve. These are some reasons why customer reviews matter when you raise the price of your product:
Customer reviews matter because they:
Make you stand out
Shoppers will always get angry or disappointed in your brand when you suddenly raise the price of your product. They will think you just did like other brands and increased prices to earn more. To keep your customers loyal, explain the reasons behind raising the price. If you explain it to them, it will assure them that you are still considering their choices. It also makes you stand out in the market and can increase customer loyalty.
Inform you about your competitor’s products
Listening to what customers say about your products can help you. Some customers also write about your competitor’s prices and products. It can help you understand and check your competitor’s products and prices. After you discover it, you can inform them about the reason behind the sudden price change and make them understand.
Help to improve customer service
When you reply to a customer review, it shows your concern to your customers. When you explain the reason why you changed your price, they will understand your point of view. You can also tell them about the positives of your product and ask them to try it out once. It can make them your loyal and satisfied customers.
Conclusion
In conclusion, when you introduce new products or change the price of existing products. You should always give hints and inform your customers beforehand. The customer will definitely not like it at first, but when you explain your points, you will make them understand. They will understand your point of view and try out your product once. Your loyal customers will purchase products, and some will go away. However, you should always respond to customers’ reviews to make them stay with you for a long time. Now that you know everything about poor price performance and how to respond to it, you can decide on the prices of your products. Another thing that can help you nail the product pricing department is a smart pricing intelligence solution. Check it out!
