Pricing professionals: Are you communicating with influencers in your target market? Most pricing experts have one way of listening to the market – analyzing sales volume. If sales drop, you talk to the sales team or call a dealer or distributor to get “the inside scoop”. In either case, you are reacting to something that has occurred in the past because sales volume has already dropped.
Wouldn’t it be better if you could have a direct conversation with the market?
When customers have the opportunity to provide feedback about price, you can obtain information about where the market is going. You can gather and monitor responses to prices before losing large volumes. When gathered correctly, customer feedback provides powerful market intelligence.
To build market intelligence, the customer has to tell you more than “the price is too high”. Market intelligence requires structured feedback. Anytime a customer gives feedback, you know that the price is too high. What you don’t know is why the customer considers the price too high. Find out! Ask your customers why they think the price is too high:
- Competitor price is lower
- New version of an item is more expensive than the original item
- Kit or bundle is more expensive than the individual items
- Unrealistic price compared to another item we sell
- Price is missing
The information you gather is valuable because it can help you develop and maintain a logical pricing strategy. As a result, the number of complaints should decrease, which is a sign the customer satisfaction is increasing. In addition, the process of gathering feedback can lead to improved customer satisfaction. The ability to give feedback, and seeing the results of that feedback, build the perception that your company is listening.
Companies, like Hitachi, use Syncron pricing software to gather customer feedback. Our solution allows your staff and dealers to enter customer feedback, and track the conversation with the customer with a feedback log. This log stores actions and comments related to the customer’s feedback. The system also allows the user to notify the customer when the issue has been resolved, leading to greater customer satisfaction.
In addition to increasing customer satisfaction, all this feedback can help you:
- Spot and correct inconsistent pricing across product lines, customers, and sales channels
- Identify underperforming product segments, customers, or markets
- Take corrective action to improve your competitive position
Whether you know it or not, the market is talking. The sooner you hear what it is saying, the sooner you can correct problems that deteriorate margins.
See Syncron at the Professional Pricing Society conference in Dallas, Texas on 5-8 May, 2015. Learn more!
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