Who wouldn't want to be able to raise prices without missing even a sale? It is proven that you can achieve this if you improve the quality of the service. Combining this requirement with good communication you can achieve up to 11% increase in your sales. How to do it, in this article.
Who wouldn't want to be able to raise prices without missing even a sale? Of course, this is nothing less than a net increase in profitability. It sounds very tempting, but is it possible?
Of course it is possible! And it is achieved with this formula: improve the quality of the service, and encourage your customers to tell their acquaintances about the service they have received.
This formula has its foundation. A study conducted by Cornell University has shown that it is possible to increase prices without losing sales, if you increase the perception of quality in your customers (and make everyone know!).
In this study, data from different sites that function as social networks for travelers, and also as booking engines for tourist services, have been crossed.
Normally, when the price per room of a hotel increases, its occupancy rate tends to decrease (this is a law of the market for any service). However, if an establishment is able to increase the evaluation made by users (on a five-point scale) in the channels of online travel agencies by one point, it could increase its prices by approximately 11.2% and continue to maintain the same occupancy rate.
The positive effect of an increase in user scores may outweigh the negative impact on occupancy that is typically attributed to price increases. (Source: Hosteltur).
Do you realize what this means? Can you imagine being able to increase your prices by 11%, and not lose any sales? How much money would it mean for your organization? That is the benefit of working to improve the quality of your service. With this data, who could ensure that a service strategy has no return?
Now let's go back to the initial formula. It is necessary to improve the service, but you must also spread the opinions of your customers. But beware! If you take care to spread the opinions of your customers before having excellent service, the effect will work against you. Those opinions will drive customers away, instead of attracting them.
So, work first on improving the quality of your service. Realize that in the world we live in, customers are more demanding every day, and that they have a power like never before in history. They have the power of mass communication, through social networks, and of persuading other customers to buy your product or service, or not to do so.
A process to increase your prices with a better quality of your service
- Ask your customers what their main reason for dissatisfaction with your service is, telling them that you have the firm intention of improving it. Work focused on improving this aspect, installing a system that allows you to ensure that no other customer will suffer from this deficiency (or that you will reduce it Once the changes are implemented, contact the customers who helped you identify the problem, thank them for their help and invite them to verify those improvements (you can offer them a discount or even your free service).Invite them to dump their comments on social networks. You can have your own networks or, better yet, where customers interested in your market meet (such as social networks of travelers for the tourism sector). Be specific with your invitation, offer them the shortcut,or send them an email reminding them.
You know, a service doesn't have to be perfect to attract and retain good customers. If your clients see that you are constantly working on improving the aspects that are not satisfactory today, you will get two benefits:
- First, they will give you a second chance, Second, they will give you feedback on what does not satisfy them, because they know that this information will soon translate into better service for themselves.
