The Great Debate: Price Versus Customer Service in Securing Brand Loyalty
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The Great Debate: Price Versus Customer Service in Securing Brand Loyalty

Originally Posted at Doing CX Right Blog

Deciphering Consumer Choices: The Price vs. Experience Debate

In the quest to understand where consumers decide to invest their money, the battle often lies between the allure of an unbeatable deal and the promise of an exceptional experience. This debate is a central theme in discussions across boardrooms and business meetings globally, highlighting the intricate balance between price sensitivity and the quest for outstanding customer experiences across various industries.

During conversations with Jeremy Hyde, Director Of Customer Service at Sun Country Airlines , I dived into these themes, drawing insights that extend beyond the airline industry. Our discussion provided valuable strategies for leaders looking to navigate consumer choice more effectively.

The Magnetic Draw of Value

Jeremy and I discussed the universal appeal of a good deal. “Offering strong value across choices is key so every customer finds an option matching their budget and priorities,” Jeremy explained. I echoed this sentiment, highlighting that while compelling value perceptions attract initial consumer interest, the true mastery lies in combining this with exceptional service to foster lasting loyalty.

Strategies for Businesses:

  • Introduce tiered pricing to cater to diverse budgets.
  • Emphasize the superior worth of products/services over their price.
  • Innovate with bolt-on upgrades and loyalty programs to enhance value.

The Differentiating Power of Customer Experiences

“The experience customers have with us is pivotal,” Jeremy shared, a sentiment I strongly support. Memorable customer experiences set brands apart, necessitating thoughtful investments in the infrastructure that supports exceptional service.

Strategies for Businesses:

Quality and Price: A Strategic Balance

Our discussion highlighted the ongoing challenge of balancing quality with affordability. “Customers want to feel they receive outstanding value,” Jeremy insightfully explained. This principle underpins the consumer demand for experiences that justify their price, transcending conventional value propositions.

Strategies for Businesses:

  • Streamline operations to enhance service quality without escalating costs.
  • Employ technology smartly to manage costs while maintaining high service standards.
  • Promote collaboration across departments to ensure a unified and high-quality customer experience.

Consumer Psychology: The Debate Behind Decisions...


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Nicholas Bills

Non Executive Director | MARKETING CONSULTANT ?? | Hospitality | Business Growth | Brand | Content Strategy | Mentor | Non Executive Director

11 个月

Interesting!

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Price can be a confusing variable in CX analysis. I'd suggest thinking of it as an expectation-setting variable. Price establishes expectations, customer attitudes (promoter, passive detractor etc) are the customers reaction to the experience RELATIVE to the expectations. Airlines are a good example. Why would Ryanair have so many promoters (not to say they don't have detractors also). Well, very low price = reduced expectations "we will get you there safely, and that's pretty much it". Emirates first class? Sky high expectations (pun intentional). You have to deliver to create a promoter - a very good flight is just a passive. Now there is over simplistic. You can also see expectations through the lens of "needs" vs "wants" and how they anchor the customer differently and create promoters, but the key thing to understanding is that price is a MAJOR (not exclusive) determinant of expectations.

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Ken Schmitt

CEO & Founder | Board Member | Private Equity Executive Search | Author & Speaker | Podcast Host | Sales, Marketing, Operations, C-Suite & Board Leadership Recruiting | Succession Planning | Human Capital Management

11 个月

Stacy Sherman????? ?? this is a great post! I especially like your comments about differentiating the different customer journeys across your omnichannel. I just had a great conversation about this very topic with former Nike executive Tim Mitchell as we chatted about using analytics to create better engagement with each customer "profile" https://podcasts.apple.com/us/podcast/hiring-raving-fans-matters-what-nike-taught-me-with/id1668210065?i=1000647925731

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