For some, learning how to maintain customer loyalty during price hikes has become an uncomfortable challenge. But with inflation, raising the cost of your services may be unavoidable.
What’s the best way to do this, without turning off your customers? Recently, on LinkedIn, I conducted a poll, where I asked my connections about about the best way to maintain customer loyalty during inflation fueled price hikes. Below are the choices and the results:
- Exceptional Service: 68%
- Transparency About the Hike: 22%
- Special Offers : 8%
- New Loyalty Programs: 3%
Let’s talk about these strategies and do a deep dive on the more popular options.
Exceptional Service
I understand the popularity of this choice but it can be highly subjective. You may think your service goes beyond the norm but that may not be true.
Not everyone can be above average. Nevertheless, a commitment to exceptional service often includes these elements:
- Attention to Details: There are processes that always happen and employees understand why they need to happen.
- A Problem Solving Process: When something goes wrong, fixing the issue, in a timely fashion, follows a pre-determined path. The solution may be new but the process to get there isn’t a mystery.
- Strong Communication: This is especially important with problems at your business, like staffing. Let people know if there are going to be delays or figure out ways to lessen the impact. Customers should not have to discover your problems.
- Easy to Reach Help: When people have questions or issues, make it easy for them to contact you. Keep in mind that different generations may prefer different communication channels.
- Ongoing Employee Training: Make sure policies are known and shown to employees. Role play customer scenarios.
- Embrace Feedback: When people tell you of problems or concerns, you review the situation, make changes if possible, and get back to the person who offered the feedback, with a report.
- The Extra Mile: Do you have a database where you capture information about your customer’s purchases or personal details? Consider little things you can do to help or delight them, like a loyalty discount or even a birthday card, signed by your staff.
Transparency About the Hike
This one is easier to talk about than to do. But honesty can produce customer understanding.
People may not like having to pay more but they can understand scenarios, like your costs doubling. They may also be willing to pay more, rather than see your standards fall, as part of a cost-cutting move.
Take time to get the messaging right and consider testing it on family, friends, and some of your best customers. See if you’ve got the correct tone.
Special Offers
Can you maintain customer loyalty during price hikes, with offers that make people feel like they’re getting a good deal? These can be limited promotions or ongoing efforts.
Before you start anything, run the numbers to make sure you’ll retain customers, while not doing significant damage to your bottom line.
New Loyalty Programs
Simply put, loyalty programs reward customers for using a business. In exchange for this commitment, they receive some kind of perk.
We see this in places like coffee shops, where after you buy ten drinks, the next one is free. There are several psychological principles behind these programs, like the goal gradient effect. It sees people want to finish a process, they’ve started.
While these programs can be a good way to maintain customer loyalty during price hikes, you want to make sure the goal is achievable and the benefit is worth experiencing. Getting a dollar off a thousand dollar charge may not get people excited.
Let’s Create a Memorable Meeting
