You can talk all you want about the “value proposition” and about how consumers don’t *really* make purchase decisions based on price, but when it gets right down to it, guess what – they do. Don’t you?
All else being equal (ALL ELSE BEING EQUAL in the opinion of the consumer, whose opinion is the only opinion that counts), price matters. Of course it does. Why would I pay more for something I could get for less. Particularly in today’s economy WHY WOULD I PAY MORE FOR SOMETHING I COULD GET FOR LESS. I wouldn’t.
Yes, there is still a contingent of egotistical – and often struggling – businesspeople who insist that “we’re not going to compete on price.” Well, fine. But then you’d darn well figure out what it *is* that you are going to compete on. And, if you can’t come up with anything, then guess what? You’d better start thinking about competing on price. Because consumers aren’t going to pay you more just because you think you’re great. If you can’t convince them that you’re great, you’re fighting a losing battle.
But why take my word for it? A recent study conducted by Duke University’s School of business, “THE CMO Survey,” commissioned by the American Marketing Association, and released earlier this year, indicated the following “customer priorities”:
#1 Low Price – 30 %
#2 Trusting Relationship – 20%
#3 Superior Product Quality – 19%
#4 Excellent Service – 16 %
#5 Superior Innovation – 11 %
#6 Brand – 6 %
When I think about the primary focus of most of the businesses I deal with, read about or consult with, their focus seems to be exactly opposite to customer priority. They’re focused on brand, innovation and service. Not that there’s anything wrong with that…
But, when it gets right down to it – ALL ELSE BEING EQUAL – yes, DUH!, price matters. And in this economy it matters even more than ever. The question is, what are you doing about it?
Recommended Reading:
The Everything Guide to Customer Engagement
