What makes a customer willing to pay more for a product or service when much of the buying criteria seem identical? Assuming all things equal, customer purchase behavior can sometimes defy logic and in fact that they will knowingly pay more for something they want based on something important to them that was not recognized by all the sellers. And it certainly wasn’t the price. Were the customers fooled or taken advantage of? Probably not; they knew what they were doing when they did it. So what is the magic that salespeople can possess to get customers not to focus on the lowest price, but be willing to pay more?
Customers will judge you, your products, and your services on your price alone if they perceive no other value. On the other hand, when salespeople struggle to articulate any real value, most of their sales strategies are based on offering the most competitive price. Don’t get me wrong, I understand that price is important, but it isn’t the only important thing unless you treat it that way. Sometimes it is difficult to look beyond what you are selling to really see what it is the customer wants. It is more than your product and it is always more than your price. Here are the 5 techniques that you can apply to make the customer willing to pay more.
- Simplicity – Customer will always crave easy and simple, but salespeople sometimes like to make this difficult. We may add too many steps in the process that do not create value for the customer. We may be asking customers to complete certain tasks that we can, and should, be doing for them. How can you make purchase research easier for them? How many forms must a customer sign and can we condense this? Is our website easy to navigate? Are our proposals easy to understand?
- Valued differentiator – You have competitors, and if we set aside price, what is the one reason why customers should buy from you that actually matters to them? Do you have convenient hours and locations? Do you generate easy-to-read reports? Are you a one-stop-shop? Do your products and services have a unique feature? These key differentiating factors should not only steer business away from your competitors but have your customers considering to pay more.
- A great customer experience – Do you have a buying process that makes the customer feel like the most important thing every step of the way? If what you do and how you do it makes the customer say, “Wow!” at any given time, they should and will be willing to pay more. How can you make your customers say “Wow!” more often and you will likely find a way to charge them more as well.
- A sense of urgency – Limited time offers may sound old school, but they still work very well. Customers love the feeling that they got something special or got it in some special way. If you can create a sense of urgency with customers, they may be willing to pay more before the window of opportunity closes.
- Fitness – Are you able to address a customer’s needs in a unique way. Like a custom suit that you can’t get anywhere else? People will pay more if they perceive something to be unique to them. They either can’t get something like this anywhere else or no one else will be able to get what they now have. If it is the perfect fit, they will pay more.