Chances are the most common question you hear as a business owner is what’s the price? What services are included for that price and how are you different from competitor A, competitor B, etc. Be honest, do you get defensive when customers ask these questions? Does your receptionist, sales team or customer service department provide smart and accurate answers? Understand the comparison-shopping process and embrace it to win more business!
Good Customers Shop Around First
You may not agree with the above statement, but a natural step in the customer lifecycle is research. Part of the research phase is asking friends for advice (word of mouth), comparing your business to others via online reviews and reading your website. Another component to research is comparison shopping. When someone is new to Lubbock as a student or a recent transplant or if a customer has never had a need for your service/product, they are likely to get multiple quotes. You could also be talking to a long-time resident, a customer of a competitor that is open to change.
Those who shop around are better customers worth acquiring.
- They are educated about your service, the value and differences from competitors
- They understand the price and what is included/excluded
- Once they choose a business, they are likely to stay a customer for a long time, confident in their research
Good Businesses Encourage Comparisons
I recently saw a commercial vehicle drive by with a bold tagline, “THINK OF US FOR THE THIRD AND FINAL QUOTE!”. This was a business confident in their service and customer satisfaction. They knew they were the best in town and could prove it to anyone who gave them a chance.
If you truly are the best at your craft, why not encourage customers to shop around? Those customers worth earning should be convinced. If they aren’t, learn from it! Always ask why did you choose or not choose our business? See for yourself if possible.
Make it easy for leads to discover pricing. Millennials are quickly becoming the largest demographic with purchasing power. Many want the ability to chat with customer service on your website/social media and text message for pricing and estimates. These are preferred for communication over phone calls and face-to-face meetings in the research phase. Make it convenient and be as transparent as possible.
If estimates are typical in your trade, ask to view a competitor’s quote. What’s included and excluded? Will you price match or provide a better warranty or quality of work? These are deeper conversations that can make you appear like a mentor/advisor vs a pushy salesman.
Comparison Shopping in Action
There are many ways to promote comparison shopping without a direct tagline! One example we launched earlier this year is LubbockInsurance.com. I realized long ago that insurance is complicated, and customers were seeking an independent way to compare local agents. So, we did the hard work for them! For auto and home policies, Lubbock residents can now see agencies by insurance carrier. They can even compare by number of unique carriers for auto and home insurance. This new website aims to be part of the research conversation that we know already happens!
Easier methods are to create a spec sheet that compares your products and service to others.
Write a blog post that targets search users with “VS” and “Best”. Example: “Shopping at Discount Tire vs. a Local Tire Dealer” and “5 Reasons Your Local Tire Dealer is the Best Choice”
These methods inject your brand into the conversation and pop up when customers are looking at your competition. You can even buy ads on Google that target your competition. It’s a cheap way to test different ad copy and call to actions. Using conversion rate analysis, you’ll quickly find a message that sinks in and steers new customers to your business.