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So you ask: “How can I make these more expensive products more attractive to my customers?” Here we’ll share five ways you can keep customers loyal to your business even if you’ve raised your prices. Here they are:
Practice Price Anchoring
This involves comparing your product prices to something that’s higher-priced so that customers are convinced to go with the latter. No, we’re not asking you to stuff your store with cheaper products. We’re suggesting that you get a few products that are even higher priced than the ones you have stocked. When you sell, offer your customers the new, much higher-priced ones first. Then offer them the older product (the one with the price that’s recently increased). They are more likely to buy the second in this context than they would if you didn’t introduce the first. The point of price anchoring (as the name suggests) is to set a price against which subsequent prices will be compared. Of course, a few customers may buy the product with the anchor price first. But your aim is actually to get them to buy the one with the lower price—the one with a price that has recently increased.Emphasize the Value That Went Into Making the Product
If your product costs more, you can promote it with marketing messages that talk about the value that went into making it. For example, if you run a fashion line, you can talk about the fact that your clothes are “handmade with care, by some of Lagos’s most experienced craftspeople.” This sort of expression presents your product as something worth its price because a lot of value has gone into making it. There’s a higher chance that your customers would buy it if they get this message than they would if you simply told them the product’s new price.Sign up to the Connect Nigeria daily newsletter
Use Customer Testimonials
Here’s another approach that emphasizes value, this time from customers who have previously used your product. Testimonials from existing customers are the most effective way to convince people to buy your products. If your prices have recently gone up, it’s probably time to whip out those positive reviews you’ve accumulated over time and place them in front of prospects. While customer testimonials don’t guarantee a 100% conversion, they can generate a lot of buzz around what you sell, and bring in more buyers even when prices have risen.Simplify Price Presentation
This is a simple yet effective strategy; several studies have proven that it works. It involves presenting prices in the simplest possible form, without decimals or commas. Have a look at these figures: ₦4,799.00 ₦4,799 ₦4799 Customers presented with prices that take the first two formats tend to think of them as more expensive than the last one. This is despite the fact that they all represent the same price. You could do an A/B test with this (i.e. list prices both with the first two and the third pattern) just to confirm that the strategy works.Final Words
When prices rise, you want to be able to keep your customers. Here we’ve provided you with four ways to do that. Why not deploy all of them, to enjoy the fullest possible benefits they can give you? Featured Image Source: Sprout SocialGot a suggestion? Contact us: editor@connectnigeria.com