When you think of brands, ones that come to your mind are those that belong to the premium segment. You can easily think of an iPhone or a Mercedes Benz that are brands with strong loyalty from their customers. People are ready to pay a much higher price for such products as they believe they are getting much more value for their money. But when you are introducing a product in a market obsessed with discounts or low pricing, it seems that building a brand is next to impossible. Businesses are often tempted to offer low prices for their products and services to capture a large share in the market. Is it a good idea to think of entering a market with lowest possible price and establishing a brand? Let us find out.
Low price is mostly associated with low quality
In every market, there is a perception among a vast majority of customers that high quality is synonymous with high price. It is therefore a risky proposition to introduce a product or service at lowest possible prices and expect to build a brand image and brand loyalty. You can imagine gaining an edge over your competition by offering products at lowest possible prices to lure customers. But this is not always a good strategy. You may get success and sales of your products and services may also be very impressive. But there is a perception in the minds of your customers that your products are not really high quality. It is this perception that prevents in development of brand loyalty. Your customers feel no compulsion to stick to your brand and they can easily move on to other brand.
Low cost brand building exercise
For a majority of customers, low priced products offer very little value to them. They will not stick around with the cheapest option in front of them. The right approach to building a brand is to offer something more than just the product. You can enter the market with the lowest possible price to attract large number of customers. You need to maintain quality while keeping your production costs. This gives you a breather to sustain the business through high sales as you device an effective marketing plan. This marketing should be done with the aim of positioning the business as giving maximum value for the money. Rather than the product, it is the perceived value that customers are getting that matters more to them. It is possible to create value for the brand by getting popular celebrities and influential people from different walks of life to endorse your products and services. Customers are quick to associate the products they are using with the celebrities they idolize. This is a sure shot method of generating brand consciousness and brand loyalty among your customers.
Tips for creating brand loyalty while keeping low prices
It is not impossible to create a brand using lowest pricing strategy. There are umpteen examples of big brands still commanding the love and confidence of their millions of customers by providing high quality services at low prices. Here are some tips to achieve this objective.
Always maintain high quality of products and services
Serving your customers at low prices is no excuse for inconsistent or inferior quality. One way to win the hearts of your customers is to make sure that your products and services meet the expectations of your customers in terms of quality.
Communicate with customers
In this age of superfast means of communication, it is imperative to engage with your customers. Show the humane face of the business and what is going inside to let them connect with the company on a personal basis. The more they know, the more they will develop feelings of oneness with the company.
Encourage customers to give feedback
The policy to listen to customer’s grievances and suggestions is the best possible way to earn their trust and confidence. Always ask for their honest feedback about the features and quality of your products and services. This will help you in knowing the real situation and improving your products to match the expectations of your customers.
Develop brand loyalty by giving incentives to return
In these times of so many options, you cannot expect customers to keep coming back on their own. Give them reason to return by offering incentives and discounts.
Keep a close eye on your competition
Many companies become irrelevant simply because they do not keep in touch with what their competition is doing. Be aware of the current market trends and keep evolving as a company to present a modern face to your customers.
Token of appreciation
No matter how good your products and services are, arrogance is one vice that can become the cause of your downfall. Make your customers feel special by giving them thank you cards, gifts, and New Year greetings.