How Price Impacts Consumer Buying Behaviour?

Understanding consumer buying behaviour is quite crucial for any business irrespective of its size or industry because it helps business owners reach important decisions. Particularly, when they are looking to make a decision regarding the price of their product or service. Since change in price has a different impact on different groups of buyers and not everyone appreciates reduction in price. Similar is the case, when a vendor increases the price of products or services.

Therefore, to lure and retain customers, studying consumer buying behaviour is a must for every business before altering their price. Else, buyers have plenty of options out there and it won’t take them much time to make the switch. To make things easy for organizations, here we have discussed how price impacts buying behaviour and what business managers should keep in mind before altering the price:

The Impact of Cutting Prices

Lowering the price of an item or service has a different effect on consumer buying behaviour. Sometimes it negatively impacts customer experience because many equate low price products with low quality. Thus, when a business reduces the prices of its products such buyers becomes suspicious and switch to another brand, which they believe offer better value. However, for price-conscious shoppers reduction in price is a golden opportunity to stock up their favourite items.

The Impact of Increasing Prices

Before increasing the price of your product or service businesses should comprehend its effects on consumers buying behaviour, as it can go either way. A rise in price can make even the most loyal customers of a company abandon its product, if a competitor offers them same item at low price. This will not only hurt the company’s base of loyal customers, but also effect its sales stream poorly. On the other hand, hike in price can have a completely different effect, if the product or service has no match and it’s high in demand. In fact, increase in the price sometimes effect buyers positively because many believe that high price products offer better quality.

Conduct Research

Due to unexpected effects of change in price over consumer buying behaviour it is crucial that organizations should price their products or services correctly right from the start. Altering the price of a product or service is always risky. Hence business managers must alter it after serious consideration and thorough research. Retailers can start off by inspecting the prices of their competitors and studying actual business cases. It will enable them to determine the average price set and mark-up percentage of the industry.

Monitor Buying Behaviour

Conducting research alone is not enough to reach a decision, when it comes to changing the price. Placing a system for tracking customers’ buying behaviour is another essential thing, which should be on top of business managers’ minds. Since customers buying behaviour never stays the same and it keeps on changing over the time. Here a barcode tracking system can prove extremely helpful, as it allow companies to record and equate product sales at various price points.

Things to Avoid While Delivering an Online Customer Service

Sometimes despite using all your resources including, money, time and energy on improving your customer service, you do not get the desired results. This happens when you overlook some key points while delivering online support service.

As everyone knows that customer service holds the value of lifeblood for an online business; therefore, one must continuously work on its improvement.

Don’t Assume that Customers Do not Need a Human Support while Shopping Online

There is always a need for ‘change’ in your online customer service, sales or marketing techniques; you have to renovate everything as per your customer’s demands. As these days, the excessive usage of social media has made the people chat savvier than before; therefore, you should try to make your online customer experience more convenient by providing real time support through real support agents. One online business tool that is increasingly being used by most of the online vendors is ‘live chat software’. By installing this chat solution in your e-commerce website, you can let your CSRs to interact with your customers in real way.

Don’t Oversell to Your Customers

Certainly, you are running business to sell your products or services and the ultimate purpose of your online customer service is also to make people buy from your e-store. However, if you overdo the selling practices by forcing customers to buy from your e-shop, it would surely leave a bad impression ultimately driving your customers away.

Don’t Ever Blame Customers

No matter it is your customer’s fault or not, do not ever rush to blame him because it is never going to be a professional step to point out an inconvenience. Adopt the policy ‘Customer is always right’. Instead of pointing out the mistake your customer committed while following your procedure, you should simply explain the procedure again.

Don’t Deny the Inconvenience

Do not ever deny any inconvenience in your online customer service system because sometimes your system may fail due to internet issue or an overload on the telephonic lines. The best way to handle such situation is to simply apologize and assure that the problem will be rectified soon and will not recur in future.

Don’t Under-Deliver than You Promised

Don’t ever overpromise to your customers and if you do, then try to fulfill it at every cost because if do not stand by your words, customers would not trust you anymore.

By avoiding these points, you can create an outstanding customer experience on your e-shop.

Online Customer Services: How to Show Your Customers that You Care

It has now been established as a fact that for providing best customer services you should adopt a more cordial approach towards your customers. Appearing as rude and distant will turn your customers away from you, and even if it doesn’t repel the customers, it will not build a good rapport with them. However, telling your customers that you care and showing emotions might be difficult on an online medium. But, it is not unachievable and there are many ways through which you can show your customers that you care, which include:

Helping Them in the Best Possible Way

Every problem has a solution, we just have to look for it. But, unfortunately many operators refrain from doing so. When they cannot find a solution for a customer’s issue, they would refuse to help further. Such kind of an attitude will not let you provide good customer service. For that, your operators would have to go and take an extra mile and really help the customers. They should seek for the best alternative solution and try to help the customers in the best possible way. By helping your customers that way, you will show them that they mean something to you.

Keep Them Updated

To win the heart of your customers and earn their loyalty you need to make them a part of your organization. You should keep your frequent and even new customers updated about the new arrivals in your stock and introduce them to the new products that you are launching. Keep them informed about new deals, sales and offers. You should also offer special discounts and bonuses to your loyal and trusted customers.

Catch Up With Them

The best way to show your customers that you care is to remember them even after you are done dealing with them. A small thank you or apology note will not hurt you. All you have to do is to email your customers and tell them that they mean a lot to you. If they purchased from you, say thank you and if they were angry at you, apologize again. This will show your customers that you are actually concerned about them, hence earning their loyalty.

For garnering respect in the heart of your customers, you should provide them with best customer services. And for that, you need to show your customers that you care about them.

Four Possible Reasons for Customers to Overlook Your Business

Are you worried about your website’s alarming bounce rate? Has the increasing shopping cart-abandonment put your business in the danger-zone?  Seeing the down-fall of your business is certainly not a pleasant thing to happen. However, if you want to come out of this dilemma, you need to identify the pitfalls in your business’ overall strategies which may include your sales and customer service practices.

Here is the list of four possible reasons for which your business is being ignored by the customers.

Unanswered Questions and Complaints on Your Social Media Page

You should be as concerned about customers’ complaints as any other thing in your business. Every business, especially an online business does have a social media page, where it can easily get connected to worldwide customers, can know about their complaints, expectations and demands. If you are continuously ignoring the complaints and questions on your social media page, it means not only you are losing the sales but also ruining your business’ reputation.

Negative Reviews

The modern-day customers being more aware than before do not make an online purchase just by looking at a product’s appearance; rather, they would go for the reviews of other customers’ who are already using the product or service. The reviews play a great role in making or breaking their purchase decisions. Therefore, try to turn those negative remarks into positive reviews by enhancing your online customer experience. This way, you can row your business boat on the safer side.

Lack of Instant and Human Support on Your E-Store

Why do customers prefer to shop from an e-store these days? In this world of automation, customers want everything done at their beck and call; therefore, instead of wasting their time by visiting the walk-in stores, roaming around and then purchasing a product after having a number of visits to different shops, they prefer to make a purchase through their desktops and smart phones, while sitting at home or office. However, if your e-store fails to provide an immediate assistance to the clients, they would surely switch to a better competitor who could provide them with immediate assistance to make an online purchase.

Poor Content

When a potential client visits an e-store, the first thing he looks for, is the content as well as design of a website. The purpose of reading out content is to get a maximum self-support while making an online purchase. However, if your website does not carry the relevant content, your customer would surely rate your website, in the lower rank that ultimately leads to increased bounce rate.

Thus, overcoming these downsides, you cannot only earn customers, but also a good reputation in the market.

4 Ways Enhanced Customer Experience Helps Achieving Basic Business Goals

Every business has some goals. Although, the type of these goals may vary from one business to another but still the basic objectives of all, remain almost the same.  What are the common objectives of businesses? For the startups, the primary goal is to maintain their existence, to fight the competition and to earn a positive recognition in the market; whereas for established companies or firms, the objectives are bit high and can be in form of revenue.

For established businesses, maintaining a good reputation, standing out from the competition, generating more sales, creating brand advocates, and retaining old customers are the major goals for which they take every step they need to. For a business, the one effective way to achieve all business goals is to create an enhanced customer experience. See how creating an enhanced customer experience helps achieving your business goals.

Surviving the Competition

The biggest challenge that every established and startup business has to face is a ‘tough market competition’. Now customers can easily find the same products at the same price and quality from multiple companies. Therefore, the only thing that can make you first priority of your clients is your ‘superior customer service’.

Winning Loyal Customers

Winning loyal customers also comes as a biggest challenge for most of the businesses. The modern-day buyers hardly show brand loyalty for any business because they can find a number of best alternatives just in a matter of seconds. In such situation, delivering quality customer support can become the only way to earn loyal customers because this is something for which a business is remembered by.

 Generating Brand Advocates

By delivering consistent high quality customer service, you can increase your clients’ satisfaction in your products as well as services.  This increased satisfaction then leads your loyal customers to become your brand advocates, who help creating a positive repute of your business in the worldwide market by sharing a positive word of mouth on social media and other platforms.

Increasing Your Sales Volume

Customer service has a direct impact on increasing your sales volume. Your good service and care can turn a potential client into legitimate buyer, ultimately increasing your sales volume. A memorable customer experience helps you win more repeat purchases for your business. Thus, it also serves as a way to market your business, because a positive word of mouth from a satisfied customer can bring more clients to your business.

It would be justified to say that an enhanced customer service is the most reliable tool through which entrepreneurs can accomplish their basic business goals.

Three Factors That Can Drop Your Customer Service Worth

Customer service plays a key role in building a business’ reputation.  Taking the contemporary market situation into account, all types of businesses, especially the online companies are paying more attention towards creating best customer service, because this is what can lift them from bottom to top. No doubt, the quality of your product has much to do in winning or losing customers but a major thing that can cast a lasting impression, is your differentiating customer experience.

Sometimes, despite putting in all their efforts, many online businesses fail to create a positive customer experience. What can be the reason of this dilemma? This is because some of the vendors do not take a deeper view of their customer service standards that ultimately causes them heavy losses.

Ignoring Complaints

Receiving complaints is not as alarming as ignoring them. Some of the companies do not provide their online clients a platform or online complaint system where they can add their queries and concerns; whereas others despite receiving complaints through all possible resources do not provide timely and relevant responses. Thus, giving a deaf ear to their customers’ complaints, such companies create a poor image of their online service on the whole.

Promising More than Customers’ Expectations

Sometimes, some of the online service agents make overpromises with their customers, just for sake of making a sale on that particular instant. Although, this yields time being sales benefits but in the longer run, this action is likely to cost ever-lasting loss to a particular business. The biggest loss a business may face is the lack of customer trust, which is the base of strong customer relationship. Moreover, on receiving a negative customer experience, a customer is more likely to spread the news amongst his peers and social media contacts, from where it gets spread to worldwide buyers. Therefore, before making any such impracticable promise, you need to make sure whether you can actually offer the service or product in the given time.

Lack of Proactive Customer Support

In this competitive market, waiting for customers to approach you on their own, is never going to be a good option, because your competitors are always there to avail the opportunity. Therefore, keep focusing on proactively approaching customers, either through, email, telephone or live chat.

Thus, avoiding these customer service slips, you can create a perfect customer service experience.

Types of Complainers Who Should Be Responded at Priority

In this fast-paced world, receiving complaints is neither a dilemma nor a danger as long as it does not exceed a certain limit. Even with the use of latest technological developments, many online businesses can turn these complaints into sales opportunities. Every business receives customer complaints but those who successfully cope up with the clients’ issues, can create a distinguishing customer experience.  What techniques an online business can use to convert its customer complaints into opportunities? Several pointers can be considered but the foremost thing is the type of customers. Here is detail about what kinds of complainers should be responded at priority.

Customer who has come to Your E-Store for the First Time

Getting a new customer is no doubt a challenging task, especially in the present day jam-packed market situation. Therefore, suppose if a potential client has visited your e-store for the first time to make a purchase and for whatever reason he files a complaint, you need to immediately resolve his issue and bring it to his knowledge so that he can continue purchasing with you in future.

VIP Customers

Every business has some VIP customers who are treated at top priority for being the major source of revenues. You should provide them quick solutions of their complaints even if you have to go against your policies at that time.

Customers Common Complaints

Such customers complain about few common issues that are already raised by other clients. Therefore, you need to resolve complaints of these customers at first hand, so that you may not get a raise in the number of such complainers.

Technology-Savvy Customers

Some customers are much technology-savvy and they love to spread bad words of mouth about your business by uploading videos and photos or spreading negative comments. Approaching such customers on the right time and resolving their complaints at your quickest, is the best thing you can do to keep your customer service level up.

These types of customers are common for every business; but still every business receives different complainers depending upon its nature, type and size. Therefore, whatever the niche your business belongs to, you need to identify the type of complainers who should be dealt at first priority before they create trouble for your company.

Ways to Raise Prices without Turning Your Customers Away

Seeing a price hike always comes as an evil surprise for your customers. Although, every business has to raise prices at one stage or the other but it does carry some risks of losing customers. You are more likely to lose your new customers or in rare cases you can lose an old customer as well, if you provide little gap between your latest and last price raise.
You need to be wise enough while raising product price, so that you may not face the biggest loss of losing customer. You need to take care of your customers’ sentiments and needs as well.

Be Transparent

Customers would never appreciate you for the tricks you play just for your business benefits. You need to put yourself in customers’ shoes and be well aware of the reaction that customer may show when they have to pay more than the last time after completing a purchase. Whenever you are raising a product price, make it clear to your customers before they reach at the checkout stage, especially to those who are your regular customers. Running an online business, you can mention the price raise on different side of your website that is visible to your customers.

Explain the Valid Reasons

Though you are not liable to explain every price raise but still to provide a personalize customer service, you need to explain to your customers. The way you convince them and talk to them matters a lot, you need to be polite and caring. Customers would understand you at one point or the other.

Add More Features

Another effective way to convince your customers for your new prices is that you can add more features to your products. This method is especially useful for a small commodity. Suppose, if you sell an eatable or any other product like detergents, you can add a new feature in it.  This would somehow convince a customer to spend a little more money.

Offer Surprise Gifts through Balloting

One way to divert your customers’ attention from the price hikes is that you can offer surprise gifts to purchasers through balloting system. This will certainly keep customers purchasing and repurchasing the product despite having a price hike.

Adopting these few simple tactics, you can increase customers’ satisfaction even with your newly raised prices.

Customer Service Practices Which Annoy Your Buyers

Customer service has much to do with a business efficiency and reputation. No matter, what size and type of business you run, the level of your customer service is what, your buyers remember you for.  Excessive use of social media and ongoing developments in the cyber domain has made customers more demanding than before. Having a number of opportunities just on few clicks of mouse makes the modern-day customer more likely to switch to a better alternative, if not satisfied with your services.
Therefore, to keep your business on the winning track, you need to constantly work on improving your customer service strategies; because the little discrepancies can sometimes cost you billions.

Here are customer service practices that may frustrate your customers.

•    According to the US market survey, 74% of customers revealed that having to contact a company several times for the same reason is a frustrating experience. Getting no assistance or irrelevant support always comes as an annoying experience and it may turn your customers away forever. This ultimately affects a company’s image in the market.

•    69% of customers said that being on long hold for getting assistance extremely frustrated them. Usually the companies providing assistance through telephone and email put their customers on long waiting queues.  After having such a frustrating experience, a customer is never likely to come back to avail your services.

•    Customers appreciate the companies that listen to their complaints carefully and resolve the issues at first contact. However, repeating the same issues at multiple times, gives a feel that as the company is least interested with what is annoying its customers. 66% of customers indicated that repeating their issues over and over again to multiple service agents increased their frustration. Usually, providing assistance through telephones as, the companies transform a call to multiple representatives.

•    Company cannot survive for longer until or unless it gains trust of its customers. Trust leads a customer to make a purchase and repeat purchase with a particular company. Every company or business makes promises with its customers about its products and services; but delivering less than expectations damages its reputation as well as sales. 64% of customers said that finding a company delivers something other than they promised was an annoying customer experience as it has broken their trust.

These are the worst customer service practices which may turn your customers away, ultimately ruining your reputation and causing you a great loss.

Customer Service – Improving Hospitality Business

The customer care service has a huge impact on the hospitality business. In fact, this business is running solely because of this particular service. Each and every client meets the customer service providers of the hotel or restaurant and judge the hotel through the type of services he gets from them. It is safe to that the customer care agents are the ones who can either make your business or bring it down.

However, there are ways through which you can make sure that your customer service is never bad enough to let that happen. You can make your system so strong that nothing can touch your reputation. There are some hospitality business secrets that are promised to enhance your customer care services and make sure that the clients are always satisfied with the services they are getting.

Here are some of the well kept secrets that will be helping you to give the best customer experience to your clients at all time.

Make Good First Impressions:

The saying “first impression is the last impression” is so true. The hotels that fail to make a good first impression are always unable to keep their clients. In the hospitality business it is very vital for the hotel to maintain their decorum and keep the client smiling when he enters the hotel. If you have been able to make your client satisfied in the first few minutes then you can be sure that he will leave the hotel happily. It is as simple as that.

Train The Staff:

The hospitality business is very much like acting. The customer care staff has to be on their toes at all the times. The people who will have direct contact with the client always have to smile (even if they are not feeling like it), they will always have to be courteous and maintain their cool. The client can act like a Diva, he can be unreasonable and he will definitely make you angry. However, just like any other business you will have to keep on smiling and tend to them in the best way you can.

These tips will sure make your hospitality business thrive.