Stock prices change every day. It is all to do with the supply and demand; hence, it is inevitable that the prices of products and services also change. For any business, increasing their prices is like a double-edged sword. They may have gained the confidence to be worthy of higher rates, but they also have to face the uncomfortable reality of informing their customers.
In this article, we will learn about what is essential for communicating price changes to your customers.
Practices for Communicating about Price Increase
Following are some of the tips you can use to communicate to customers about the prices change in your products or services.
Reach out to them. Consider this example; if you were a Netflix subscriber and the bill doubled up suddenly without your knowledge or consent, that would make you pretty mad, wouldn’t it? Therefore, it is not fair to the customers to find out about the price increase in such a way.
If there has been a price increase in any of your products or services, go through the list of your customers who have subscribed to these services, and inform them directly of the increase in the prices. Make sure to address the letter, email, or SMS to each customer to provide them with a personalized experience.
An Xfinity customer, who is subscribed to any of the Xfinity services, will be informed of any price increase in their services by the Xfinity customer service. That way, Xfinity will gain a loyal customer base.
Let them know in advance. If possible, make sure to let the customers know about the price increases plenty of time before it happens. They might need to consider an alternative option or re-assess their budget. However, whatever the reason, you owe them this much and should let the customers know about the changes as soon as possible.
Companies can also use this chance to encourage them to go for more of their products or services.
Higher Prices = Better Quality. The process of the price increase can get pretty confusing for customers, even when they have been using your products or services for a long time. However, companies should remind them of the importance of product quality.
Generally, increases in prices of products are usually to match the higher operating costs, increase in hires, or increase in prices of needed resources. To meet all these demands, it is essential for companies to increase the prices of their products or services.
The Reasoning behind Price Increase. Companies should also give the reason as to what brought about the increase in prices of their products or services. For instance, if there is some material that’s become scarce and expensive, companies are forced to increase the prices of their products that use those materials.
Letting customers know about that will let them know about your willingness to be transparent.
Ensure employees know about price increases before customers. It would be embarrassing if your customer support rep told customers the old prices if he wasn’t informed of the change.
Even when all employees are well-informed about the new changes, they should be made to ensure they are all on the same page about the price differences, their reasoning, etc. This will ensure that the company as a whole has a consistent say on all matters concerning the price increase.
Keeping all this in mind, companies should make sure that customers have all the information regarding the price increase of the products or services that they use. Lack of such information can lead them to turn to your competitors with lower prices. Companies should make sure customer support is available to them at all times, especially regarding the price increase.
Customers’ Reaction
Ideally, customers would respond in agreement about the increase in prices, but the reality is (one of the possibilities among others) that your customers will be deterred from using your products or services ever again.
Instead of considering this as a loss, companies can use this chance to focus more on their customers to generate a higher return on investment.
Final Thoughts
Your customers have signed up to use your products or services, and in return, you, as a company, owe them a notification of price change, and that too within ample time for them to make decisions.
How to Communicate about Price Increases to the Customers
Source: Magandang Gabi Viral
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