Competing on More Than Price
Many people will be surprised to know that your sales strategy is also part of your marketing strategy and overall business strategy. So, for this post we are going to talk about beating out the competition, not through price slashing, but though thoughtful, savvy techniques that will help boost your sales and leave your competition in the dust.
Making the Buying Decision
According to an article by Josh Leibowitz, the following is what goes into a buying decision, so ultimately what you need to address in your sales and marketing plans.
Price: 24% In general, your company consistently offers better prices compared with anywhere else / Your company offers exceptionally low prices from time to time
Trust: 17% People know and trust your company / The items you sell are always good quality
Experience 17% People can easily find the specific items I want / You are the most convenient company to work with
Product research: 11% You make it easy to find information about items and conduct research
Delivery cost: 4% . Your company offers reasonable delivery costs
Assortment: 12% You have a good range of prices and quality levels
Return policy: 12% The return policy and process are reasonable and easy to follow
Loyalty 3% You have a loyalty program that gives me rewards I really value
Just Do It
If you noticed from the list, these are all just good business practices and what you yourself want when buying anything from a TV to selecting a vendor. Focus on building a slid business foundation with policies to consistently review your practices, then market the crap out of them. Get your brand out there to build trust. Make sure your website is easy to use and buy from. Ensure your offerings have depth and options. If you don’t have a loyalty program, start one, and if you already do promote in on social media, emails, calls, purchases, etc. Make sure that your customer service oriented and have return policies that make sense to you as a consumer, not a business.
Forget the Price Battle
Although a portion of the reason people buy is because of price, it is not the only factor. And when you start the whole “lowest prices in town”, one of your competitors is bound to under-cut you, starting a battle of dollars that ultimately devastates your profitability and does not build any brand loyalty. There is nothing wrong with evaluating your pricing regularly, but base what you go to market with on sound reasoning and WHAT YOUR CUSTOMERS ARE SAYING. That is really the bottom line.