Revealed: New Trends on Pricing

A new Kibo study called the “Consumer Trends Report, 2017 Edition” reveals that 76% of respondents research prices on a product they want to buy, up 10% from the year previous.

Moreover, 68% said price is the biggest reason they shop where they do. These numbers would lead one to believe that price is still king in Customer Experience, but one would be wrong.

Price is still important, vitally so. However, it no longer bears the title of monarch of the Customer Experience. Instead, the Kibo report revealed that price officially shares power with personalization and fulfillment.

According to the Kibo study of 3,000 respondents in the U.S. and U.K., a few revelations worth mentioning include:

• 85% are influenced by home page promotions online, and 92% were influenced by personalized shopping carts.
• Seamless experiences between online and brick and mortar purchases are expected, and nearly half of the respondents worked with in-store staff to order from another location and ship to their home.
• 81% of respondents that look items up online expect to see if a product is available at the store and 80% feel annoyed if that feature isn’t available.
• The top two influences that drove purchases were interactive content at 92% and product reviews, 82%.

The Kibo study said that most people price check a product before they buy and shop where they shop because of the price. However, an even greater majority admit that personalized promotions on the website and near the shopping cart influence their purchasing decisions (personalization).

Moreover, if the store can’t confirm they have the product (fulfillment), 80% said they wouldn’t turn up.

Listening to the Voice of the Customer Makes Meeting Their Demands Easy

In the past, only certain industries relied on differentiating themselves based on their Customer Experience. These were highly-competitive industries with thin margins, like grocery stores or hotels.

However, that is no longer the case. As Founder and CEO of Qualtrics Ryan Smith said in a recent Forbes article, “People are choosing experience over price or experience over brand all the time. So, we’ve truly become an ‘experience economy.'”

The experience economy demands a new way of looking at things. Companies like Smith’s help brands hear what their customers are saying by tracking customer comments. Not only that, he helps them predict what will happen next, which is critical information in highly competitive industries.

Responding to changing demands is an essential factor in delivering an excellent Customer Experience, which is so much easier to do when you know what the demands are.

However, Qualtrics also explores how the customer’s demanding voice can also weigh in on product development.

For example, when Yamaha was redesigning keyboards, they changed the design to include faders instead of dials due to overwhelming feedback from Yamaha’s customers using Qualtrics products.

This type of customer-led development leads to better relationships with customers, and more loyalty and retention as well.

It’s More Than the Price Is Right

It’s clear that price is important to people. However, it isn’t enough to have low prices.

Customers today want to have low prices on products that are important to them and relevant to their preferences. And the products had better be there when customers arrive to claim them, or the customers will take their business somewhere else straightaway.

Customers are a demanding lot. More so every day. It’s incumbent upon the organizations that serve them to understand their demands and rise to the occasion.