Competing on price is always a contentious topic. You will have likely heard how Carillion recently failed using this model. It was unsustainable and sadly, the fall-out from it continues with the news of Capita also now on the brink of going bust.
At first glance, the internet also looks like a marketplace driven by companies competing to be the cheapest. Are we all just in a race to the bottom on price? Or is there a different way to compete? Has the likes of Amazon and eBay driven consumer demand to become overly price sensitive?
…We think so.
It sounds unfashionable but when you go back to basics and deliver an exceptional experience, customers will pay more. It’s that simple.
In a 2017 Gartner report they determined that 89% of marketers should be looking to focus on customer experience as their primary differentiator.
Of course, understanding exactly WHAT your customers value as an ‘exceptional experience’ is the big question and there are indeed many ways to gather this insight into your customers.
Maybe it’s the one question you should be asking within your own business?
The answer will help you stay ahead of your competitors. Even those whom you currently compete with on price.
Unearthing the differential
At InsightfulUX we use qualitative research and conduct online reviews to benchmark clients against their competition and peel away the layers behind price that can truly differentiate a business and make it stand out from the rest.
We recently undertook a website audit for local B2B business. Following our workshop they took our initial recommendations and adopted them into their own website – overnight the business nearly doubled it’s income from digital activity without spending any further budget on media.
The key differentiator..? A better customer experience through the online buying cycle to capture leads.
They simply gave the customer what they were looking for and did it well. They’re not the cheapest by a long way, but by providing the differential they’ve impacted their bottom line positively.
If you’re looking to differentiate your business and understand how to compete more effectively in your market, please get in touch – we’d love to hear from you.