There are two basic strategies for creating loyalty in your customers or clients. Good pricing or good service.
Both will attract and keep customers. But of the two, service is better.
People who are loyal to certain companies — e.g. WalMart — because of their low prices
Others are loyal to certain companies — e.g. Nordstrom’s — because of their excellent customer service.
The point is that if you choose to use low prices to build customer loyalty, you’re in a precarious position. It’s easy to lose the ‘good price’ position in any marketplace. Someone once said, “There’s always some idiot who’s willing to price themselves out of business faster than you are”.
I like that! It’s also very true.
But if you position your business on ‘service’, that’s far more sustainable. It is also a safer strategy to differentiate your business or practice. And, it forces you to help people focus on the VALUE you provide rather than the PRICE you charge to enjoy it.
Let’s face it . . . if you focus on customers who want a ‘low price’ they will be loyal to your price, not you. If you focus on providing good service, customers will be loyal to you and challenges to your price will be few.
Which approach you choose will have a huge impact on your ability to generate and sustain a profitable business operation. THINK ABOUT IT!