Any business occasionally faces a question of raising its product price for customers. It’s a painful process for clients, so you need proven methods of informing them in the most soft way. To maintain customer loyalty and business stabile growth explore tips on how to announce your price increase correctly.
We’re gonna figure out on how to start dialogue with regular customers and provide them with info of price changes so as not to lose customer trust.
How to Announce Price Increase to Your Customers
You create the brand image on your own, thus you’re the author of the entire product story. The price increase can be shocking, or it can be part of the brand’s overall narrative.
Loyal customers will accept changes without frustration if these changes are imprinted in the client’s view about the brand. However, you should be aware of competitor prices to take all risks into consideration.
Here are nine proven ways how to tell customers about price increase.
Be Transparent and Clear
The clearer the info you provide to customers, the less misunderstanding you´ll get. Don’t hide price changes, send emails to inform customers in advance. If they have enough time to check out new terms and conditions, they are less likely to make emotional decisions.
Publish price increase announcements on your website to inform new visitors about changes. Show an old and a new price, as well as the percentage of increase. Transparency provides customers with a choice. You don’t force them to accept changes, giving an opportunity to make an informative decision.
Make Change Easy for Customers to Implement
Provide customers with a limited-time offer at the old price. For example, it can contain less range of options than a product at a new price. Set timelines to show how long this offer is available. However, introduce the benefits of a new product. This approach will decrease customer stress level, they will get additional time to explore new opportunities.
If customers have full info about changes and can make their own decisions, they are less likely to refuse your services. In the case of B2B companies, your clients are interested in a stable cooperation, thus slight price increase is not a serious reason to leave.
Don’t Forget to Update Your Marketing Materials
Make sure all your marketing materials correspond to new conditions. Check presentations to provide new customers with relevant info.
Discuss a common strategy for customer communication with all company employees. Ensure your every manager, marketer, etc. is aware of price changes. Think on how to announce a price increase to clients, highlight the main reasons for changes. Inform every customer following the previously agreed strategy.
Announce the Price Increase Directly to Your Customers
Personalization makes your dialogue more valuable. It is particularly important to communicate with your clients directly on such a sensitive topic as price changes. Make sure key customers have been notified, check email delivery results or ask clients to reply. Provide customers with full info about new prices. Note their requests and comments. Take into consideration the individual specifics of every client depending on your business niche. Be polite, describe conditions, but do not apologize for your new plans and financial strategy.
For example, in the individual email of price increase, you can write down the period of your cooperation with the client, results you achieved. Personal conditions you provide and extra options of changes implementation will form a unique offer for this specific customer.
Offer to Chat or Call
For many users, it’s important to communicate personally with your company staff. It’s especially relevant if they need to understand the reasons of condition changes. Offer them an opportunity to chat or call to any manager or executive. Transparency shows your loyalty to consumers. You have nothing to hide, thus, you gain your clients confidence. If they can reach out with concerns or questions to anyone in your company, you build trust even in the matter of price increase.
For instance, put call to action button on the notifying email with opportunity to call immediately for further questions , or start a chat in a user profile on your website.
Explain the Reasoning Behind the Price Increase
Provide customers with comprehensive explanation of a price increase. Cover all the points of reasoning. Remember that argumentation have to support real needs to deliver same or better product or service.
Some common reasons of price increase:
- Increase of product or service costs,
- New services or product options,
- Changes in operating costs, etc.
If customers are familiar with the real reasons, they won’t feel cheated. Such reasoning makes it clear that you’re not chasing superprofits, but changes are relevant to the market environment.
Provide an Option to Keep Old Pricing if Customer Pay Upfront
One more option to provide customers with a choice is to keep old pricing if they pay upfront. Set timelines and payment limits. This option will keep client’s costs at the previous level, but you will get payments faster.
For example, if your company introduces upgraded software service with a higher price, you can set certain period to use it by paying old price upfront. However, keep in mind that keeping old price can be unprofitable in the long run.
Focus on the Positive
Focus consumer attention on the increased value of your product. Remind them of the importance of your cooperation; show the benefits of your company, tasks you’ve already accomplished and plans for further development. Your product solves client problems, thus, after price increase it will be even more valuable. New price corresponds to improved quality. Focus on that. On the contrary, if the price increase is caused by inflation, focus on maintaining a consistently good product quality.
Show what you’re giving in return for the money the client spends.
Thank Your Customers
Thank your clients for keeping engaged with your brand. They are the part of your business just as your employees. If the product is in demand, your company will get success. However, to long life of your business you should care about long-term relationships with your customers. Thus, even if a client leaves, be polite and appreciate their time and cooperation. Maybe, one day they will come back and you’ll start building new relationship based on their positive impression of your communication style.
Let’s sum up
- Transparency and clearness increases customer trust, and decreases their frustration after the price change announcement.
- Provide clients with a range of alternatives to make a decision based on their current need or budget.
- Inform customers directly with a personalized message. Make sure they are aware of price increase in advance.
- Keep your marketing materials relevant to price changes. Ensure your employees follow the common strategy to announce new conditions according to the company’s overall plan.
- Offer customers to call or chat to anyone in your organization to address possible questions and concerns.
- Price increase explanation provides clients with necessary info to make balanced conclusions and decisions.
- Provide an option to pay for services in advance at an old price. Set payment limits and terms for this option.
- Focus on benefits of your service; emphasize product quality, its improved features.
- Communicate in appreciative and polite manner to lower the client’s stress level and to show your loyalty.
Value of every product changes with time and its price will not be stable for years. Don’t be afraid to modify your financial strategy depending on market situation, product development or other reasons. However, proper and in-time communication is the key to a successful and long term partnership with your clients.