Price increases are a constant challenge for both businesses and consumers alike. Inflation, supply-chain frustrations, and even rising minimum wages have all contributed to higher costs for everyone. These complications affect everything, both upstream and down, leaving many customers feeling like they’re being taken advantage of. However, with some thoughtful strategies, you can make sure your business makes these necessary price adjustments easier for your customers to accept. Let’s talk about a few ways to do this:
Increase the Value of the Purchase
One effective way to offset the sting of a price increase is to make sure you offer customers a bit more for their money. This can be done by adding additional value to your existing products and services. For example:
- Enhancements: Add extra features, a longer warranty, or include some free add-ons that customers find valuable—especially if these add-ons don’t greatly affect your bottom line. Even a loyalty program goes a long way.
- Streamline: Make the whole buying experience smoother and more efficient. This could include finding ways to reduce wait times, by simplifying transactions, and even by improving the overall user experience.
When customers feel like they’re getting more for their money, they’re more likely to accept a price increase.
Redirect Extra Revenue into Employee Training
Investing in employee training can significantly improve the customer experience, and your business should do so whenever possible. A better trained staff is more knowledgeable, as well as friendly and efficient, which leads to a much better customer experience. This not only makes your customers feel more valued but also justifies higher prices.
- Enhanced Training: Focus on soft skills (e.g. communication, time management, problem-solving), product knowledge, and customer engagement techniques to help your staff more effectively interact with customers. Effectively selling optional add-ons (where customers choose to spend more money) is a huge win.
- Regular Feedback: Create a system where customers can provide feedback on their experiences, and ensure that this feedback is used to continuously improve the service your company provides. Furthermore, leverage outside consultation through a mystery shopping program to really focus each aspect of the customer experience.
In short, make sure that those rising prices don’t come on the heels of a drop in overall quality and experience!
Stay Involved in the Local Community
When businesses actively contribute to their local communities, customers see them as more than just profit-driven enterprises; they see them as partners in their local lives. Highlighting this involvement can help soften the impact of a price increase:
- Support Local: Sponsor local events, donate to community charities, or partner with other local businesses. Do this to reinforce the idea that when customers spend money with you, they’re reinvesting in the community around them.
- Transparency: Let customers know how their money is being used to make a positive impact. Share stories and updates about what your initiatives are accomplishing. A sign that tells your patrons that some portion of the proceeds directly benefits a needy cause in the community goes a long way.
Make sure you connect with your chamber of commerce or similar organization to stay up-to-date with what the other local businesses are doing so you can help out too.
Your Next Step
While rising prices are often unavoidably, your business can take steps to ensure that your customers feel like they’re at least getting more value for their money and that their spending supports a larger purpose in the local community. By increasing the value of their purchases, improving the customer experience with better training, and by staying involved in the community, you can build goodwill and customer loyalty, even when economic woes put pressure on us all.
If you’re unsure where to start, we urge you to consider partnering with a mystery-shopping company like ours. We at The Brandt Group are experts in identifying areas to add value, improve customer service, and gauge local opinion. A mystery-shopping program can provide valuable insights into how your business is perceived and what steps you can take to not only soften the impact of rising prices on your customers, but also get the most out of your employees by teaching them effective social and sales skills.
Want to learn more? Reach out to us today, and let’s work together to ensure you have a plan for your business to survive and thrive today, tomorrow, and for many more years to come.
