24% of consumers believe that price is one of the most effective tools to communicate about a brand or product. Unfortunately, many executives don’t believe this.
They think that price is an obstacle that stops customers from buying the products or services they want.
It is why most companies feel the need to eliminate this “friction” in the transaction by using pricing tricks, such as tweaking price endings to make prices appear smaller.
If you want your business to thrive, this top-rated digital marketing agency in Miami suggests that you resist the temptation to make your prices appear cheaper or less relevant than they are.
Instead, focus on communicating the value of your goods or services to customers.
Price is an integral part of your conversation with customers. So, instead of seeing it as an obstacle, look at pricing as a way to convey your value.
The perception of value is one of the most crucial elements of pricing. If your customers can’t see why your products are worth it, you can’t increase your prices in the future to maintain profitability without losing customers.
Let consumers know about the qualities and attributes of your products or services that you know they’re willing to pay for.
You also need to make them believe that they’re getting value for their money. This way, even if you do increase your prices, they will remain loyal.
So, how exactly can you communicate your value to your customers?
Here are some tips according to the best digital marketing agency in Miami:
Value doesn’t just refer to the price of a good or service. It can mean different things to different people. For example, some consumers may perceive value in terms of a product’s uniqueness, ease of use, quality, or low prices.
Before approaching your customers, get a good grip of what value is to them.
Knowing what makes your customers tick will allow you to whip up incentives and irresistible deals that effectively communicate the value of your offerings.
For example, a digital marketing agency in Miami might offer to provide a free SEO scan to a client and an action plan on how the company can improve its rankings within six months.
To help you identify what value means to your customers, segment your customer base into smaller groups based on their demographics, interests, and behaviors.
Then, conduct an interview or survey. There are many ways you can do this online, such as sending survey emails, doing a poll on your Instagram stories, or one on one chat with a customer.
Once you know what’s important to them, show your customers how your business is a crucial part of the solution to the problem they’re trying to solve.
The next step is to define what your products or services do, specifically how your customers can benefit from them. Once you've articulated that to your audience, your next focus is on its features.
The reason why you want to focus on benefits first is that it helps customers envision themselves using your products or services and the results when they do.
For example, people don’t buy Nike shoes because they’re light and made of durable materials (features). They do so because they help athletes perform better (benefits).
This is why even though a lot of other sports brands offer the same features as Nike does, people still choose Nike over its competitors.
Nike also does a great job demonstrating and communicating the benefits of their shoes and the value customers receive from wearing those products.
To help you define the value and benefits of your products or services, ask yourself the following questions:
These questions will help you better understand how your products or services are beneficial to each of your customers and help your audience discover and understand the value of your offerings.
Now that you know how your products or services can be beneficial to each of your customers, the next thing you need to do is analyze how much they’re willing to pay for these benefits.
Willingness to pay refers to the maximum amount a customer is ready to pay for your products and services. If your prices are too high or too low, you’ll be driving buyers away.
By identifying the maximum amount your customers are willing to pay for your products and services, you can set a price that will help keep customers and give you enough profit to grow your business.
Without a doubt, consumers are willing to pay for value. But the big question is, how much exactly are they happy to spend on your products and services?
To calculate your target audience's willingness to pay, do the following:
The price your customers are willing to pay for your goods and services equates to their perception of the value being communicated.
You can influence your customers' perception of value by doing the following:
Find out how information reaches your customers to decide which channels and content types can effectively communicate your price.
But first things first. Develop the main marketing message that conveys the value of your offerings to your customers.
Then, personalize this message depending on the customer group you’re sending it to.
Personalization enables you to develop messaging that will resonate with your audience and compel them to take action.
Our digital marketing agency in Miami uses segmentation to group customers with similar attributes to easily create and serve personalized content.
If you're catering to Gen Z, then TikTok might be a suitable platform to convey your message.
If your target audience prefers reading blogs over watching videos, then consider investing in expert-written content.
Some customers may also respond better to information presented through email rather than with flyers. It depends on who you're trying to reach out to.
Just remember to keep your messages simple and consistent. Make your messages memorable through storytelling, use visuals, and provoke emotions to make your message more impactful.
To steadily build your credibility and reputation in your industry, your pricing approach must be consistent.
When you lower your prices, for example, you give consumers the impression that your products or services are inferior compared to your competitors.
As a result, the value proposition you worked so hard to build is undermined.
Inconsistency also confuses your customers. For example, if your target customers are a high-value segment of the market, then you need to match that with a price suitable for your audience.
When you drop your prices to compete with others, customers may feel confused about what you intend to offer them.
Consumers demand authenticity and transparency from brands, and part of this is being open about your pricing.
According to Forbes, more than 90% of consumers say that brand transparency impacts their purchase decisions.
Being transparent is about being open and honest to your customers in all your communications, from where you source your materials, your pricing, values, and how you run your business.
Consumers appreciate it when a business is transparent. It helps build and maintain customer trust and fosters loyalty.
The marketplace will also regard your company highly. Brand loyalty also means repeat business, so more sales for you!
Give your customers a breakdown of your costs and business expenses to show them where their money goes.
It’s also important to keep your customers updated with price changes, and let them know ahead of time before you implement them.
Communicating the value of your offerings won’t be easy. It takes time, a lot of research, and thorough planning to get it right.
With the help of this article, you can confidently communicate your price to consumers and attract the right customers to your business.
Is price more of an obstacle than a tool in attracting new customers and retaining existing ones? Don't worry! Your go-to Miami digital marketing agency is here to help.
At Digital Resource, our digital marketing experts and content specialists will work with you to create a custom plan that will convey your business' value to its customers and put your company ahead of your competitors.
Contact us today to start building your reputation and get more customers online!