Pricing and Customer Experience, which strategy your brand would focus on in developing markets?
For the long term, which strategy your brand would adapt to maintain a high level of retention?
Vietnam is a nation with an extremely dynamic developing economy with thousands of existing and competitive businesses whose various strategies’ goal is to gain market coverage as much as possible. Pricing strategy is most commonly used for market penetration, thus resulted in neglecting customer experience. Here are the reasons why Vietnamese brands should focus on improving customer experience.
With good customer experience, businesses will create the strongest competitive advantage
Customer is always the key point for a business to develop and maintain its operation. However, if a business perceives "price" instead of "customer" as their major concentration, it will lose the opportunity for retention. It is due to the fact that pricing strategy has been used so heavily in the Vietnam market that it is difficult for customers to distinguish or remember a brand. Therefore, creating a good customer experience impression makes them tend to use the product on a regular basis, which not only increases sales but also creates competitive advantages for the brand. According to Defaqto Research, 55% of consumers would pay more for better customer experience. This shows how CX contributes to the heart of the matter. For example, a business that receives a lot of positive reviews from customers will surely outperform other competitors. And keeping a high competitive advantage also gives businesses more motivation to assist their operation.
Wonderful experience helps increase customer retention
Vietnam's economy is in a period of rapid development with an increase in terms of income. In addition, both the middle and upper-middle class is booming. Thus prices are no longer their concerns; instead, high-quality products and services from businesses are what matters. Due to the fact that 57% of customers have stopped buying from a company because one of their competitors provided a better experience, the splendid experience will attract and retain customers as much as possible for the business. Excellent CX strategy plays an important role in differentiating yourself as well as the most effective way to build customers' trust, and this helps the company maintain the quality for retention, gradually gain the pool of loyalty. In addition, satisfied customers will spread your brand through social media, personal blogs or word-of-mouth and that helps to drive new customers and with the gratification of purchasing from your brand, it might result in larger basket size.
Businesses which are leaders in customer experience will eventually lead to increasing sales
The Temkin Group found that companies that earn $1 billion annually can expect to earn, on average, an additional $700 million within 3 years of investing in customer experience. Specifically, businesses that create positive experiences will boost retention naturally grow without having to incur additional costs to retain old customers. CX improvements can drive profits through promoting upsell opportunities, reducing customer churn and economizing the cost of handling customer’ complaints. This makes the annual sales revenue change in a better way.
It is the fact that 58% of consumers will never use a company again after a negative experience. Hence, there are three crucial elements that help you improve customer experience
Make your information available on online channels. Nowadays, consumers are more likely to search for product information across online channels, thus adopting an omnichannel strategy will help bring them a seamless and integrated experience. Therefore, providing sufficient product information on online channels will help customers easily find and understand the items they want to buy. In this way, it will reinforce customers' trust because they will have access to transparent and explicit information from the brand. The power of information plays a significant role in improving customer experience
Improve the quality of in-store salesforce. Customers are more demanding and careful than ever, they are not simply shopping, but also observing the attitude and behavior of your staff before making any purchasing decision. Consequently, a good salesperson does require to be fully knowledgeable about the product, willing to understand the needs of customers and able to provide righteous recommendations. To support sales, using product information management tools will help staff can better serve customers. By consistently integrating product information across all sales channels and store employees, reliable information can easily be accessed to help eliminate purchase obstacles and provide customers with a great experience.
Focus on customer service. It means taking care of the customer's needs by providing and delivering professional, helpful, high-quality service and assistance before, during, and even after the customer's requirements are met. Ameliorating your ability to provide great assistance with customers that you will become an ace in customer experience. The bottom line is that customer gratification is the motive that makes them choose you among countless other competitors. Controlling customer service not only improves customer experience but also increases your retention rate.
The pricing strategy may appeal to consumers in the beginning, but the customer experience will have a strong influence on the development and creating a reputation for the business. Vietnamese businesses should switch from a pricing strategy to a customer experience based one to develop more sustainably and successfully in the market.