Experienced and rookie sellers often get compliments and complaints altogether in dealing with their customers. In the competitive world of business, selling your products at a reasonable price is part of the strategy. The trick is how to put all these in mutual benefit for the seller and the customer. In this video, Marco Bertini tells you when the price is right.
Marco Bertini is an assistant professor at London Business School, and he directs five principles that could win the customer loyalty. Bertini states that pricing “is the language buyers and sellers use to discover shared value opportunities.” So, how can you win your customer’s loyalty?
First, is to focus on relationships. Companies need to see customers as people, not as wallets Bertini speaks. He means that a transactional intention for prices will disappoint customers and will bring their business elsewhere. Thus, pricing takes into consideration good knowledge of the customers, as well as their customs.
Second, is to be proactive. Bertini says that you should get to know your customers and what they will be engaging. That would mean expecting customer’s specific needs and responses beforehand. Next he tackles about flexibility. Rigid pricing does not work according to Bertini because people value prices differently. The key is to adapt and adjust to varying prices that fit right for different types of customers.
The fourth principle is transparency. Bertini states that if your company is transparent about the way you gain profits based on your pricing, you’d be on trust and goodwill. He recommends that transparency earns customers by less retained costs; customers tend to buy more expensive products, and are more forgiving of mistakes.
Lastly is understanding market standards. He also shares that it is important to understand your customer’s perception on what is fair and what isn’t in pricing. As Bertini asserts, pricing is a tool that speaks loudly to your customers.
Run time: 3:16 minutes
Click button to watch video.