With costs increasing everywhere, it’s understandable that most businesses are implementing mid-contract price increases; BT and other large telecom companies are looking to increase their current prices by 14.4%
The danger with implanting a price increase is that it’ll cause customers to look at competitors if they can and we all know that new customers can get better deals by shopping around.
So, with that in mind… How can Candio help?
Here at Candio, we’ve created a range of white-label digital services that you can rebrand and resell to customers, the cost of which is minimal, but the ROI for a customer is great, and in the last 3 years, we’ve worked with a range of Telecom, MSP and Print providers to deliver these services to customers as part of a price increase.
This is a win-win; your revenue and the value you provide to customers also increase.
There are 5 things to consider when announcing a prince increase:
Contact your customers directly
Imagine if your Spotify Premium bill increased from $9.99 to $14.99 per month without your knowledge or consent. You would be mad… right?
It’s unfair for a customer to discover a price increase in their product suddenly. If a price increase occurs, go through your list of customers who use that product or service, and send a price increase letter notifying them of the change. If possible, address the letters to each customer to personalise the process.
When launching a Candio product, we will work with you to deliver an email or direct marketing campaign at no extra cost. Inform your customers about the price increase and the new service they are receiving.
Let your customers know in advance
You should provide your customers with plenty of time to come to terms with the price increase. They may need to re-assess their budget or consider alternative options, so you should keep them in the loop once you’re made aware of the situation.
With all of Candio’s products, your customers will receive a 60-day free trial, allowing them time to use/set up/receive benefits from the new tool before they receive the increased charge.
Remind them that higher prices mean better quality
The necessity for a price increase can be confusing for customers, especially if they’ve been purchasing the same product for months or years. It makes it vital that you stress the importance of product quality.
Providing them with a new service simultaneously with the price increase will remove confusion; Candio will then support you in educating the customer to receive increased results.
Explain the reasoning behind the price increase
Most customers in the current economic market will understand the reason behind the price increase; everyone’s operating costs are increasing now. But delivering a new product which will help them will hopefully take the sting away.
Ensure the entire organisation is aware of the price increase before announcing it to customers
We’ll work with you on training, your accounts, tech support and the customer service team. Helping them to handle objections, and queries.
Final Thoughts
A price increase is very final; once you’ve done it there is no option otherwise for the customer. With a Candio service, the customer can opt-out if they feel the service isn’t for them and on average, 70% of customers retain a Candio service because of the value it delivers their organisation.
Get in touch now.