Entering a price sensitive market is usually daunting for two reasons
- Price-sensitive customers are always on the lookout for the best bargain in the market and are not loyal to any product, including yours.
- There is always a competitor who is willing to lower their prices so that they can capture your price-sensitive customers
Price-sensitive customers are not bad people. Their goal when they make purchasing decisions is not to be cheated. They always want to buy a product at the fairest price they can find – which is fair enough, if you ask me.
To entice these prudent customers and gain the market share, you need a combination of human intelligence and automation to come up with a strategy that appeals to and wins theses type of customers over.
Here are 5 things you can do to retain such customers and redefine your marketing strategy for increased sales.
Have the right pricing
Monitor your competitors to check if you are overpricing, but do not consider underpricing. The latter will not only eat into your profit margins but may also create a perception of low quality. Create a smart pricing strategy that creates a win-win for you and your customers by ensuring that your price is not high enough to chase consumers to your competitors, and yet not so low that your products are viewed as low quality.
Be Compelling and Competitive
Your pricing should be competitive and your communication compelling enough to lead the competition, drive sales and generate better margins. You don’t have to slash prices or offer ridiculous discounts to attract price-conscious customers. In my book Profit, I shared further strategies for doing promos that don’t eat into your profits.
Because of the rapid increase of information evolution of technology, you need to constantly be on the lookout for changes. Else, you’ll be left behind. Timing matters when it comes to revising your strategies, especially when in the area of marketing. Catching on to a promotion strategy later than your competitors can mean significant losses for you.
Be Readily Available
Sometimes, it is not always about your price. Consumers – even the prudent ones are loyal and willing to make a purchase but when the product is constantly unavailable or out-of-stock, they would inevitably switch to other alternatives in the market.
When you constantly run out of supplies, you are not only losing out on revenue, but also giving customers the impression of business mismanagement. To ensure that there are no gaps in your inventory, monitor and compare your assortment vs. your competitors. Make sure distributors of your product do not run out of stock.
Take Advantage of Delivery Charges
It isMonitor your shipping charges with that of your competition, and check whether your rates are reasonable or not. Alternatively, you can negotiate with various delivery outfits to come up with a flat shipping rate for your products.
In conclusion, you need to be alert and keep your eyes sharp if you want to attract price-sensitive customers. Monitor your market and make sure you are always on the mind of your consumers. Never go out of stock.
Still have questions on how to gain and retain conscious customers? Take advantage of my course on Distribution and Product visibility today.