Ready for a single-question business quiz? What is the single most determinative factor for customer retention? It is a positive customer experience.
That means the total customer experience from initial sales contact to completing the sale. The primary, collective goal for the company must be to leave the customer eager to repeat that pleasurable buying experience.
Single Biggest Threat to Satisfactory Customer Experience
The sales process is multi-faceted and a team effort. Marketers have worked hard to put together an attractive product or service presentation. Sales personnel work diligently to even get the chance to present that sales proposition..
Along the way, that often precarious, tentative relationship with a new customer is literally full of potential, deal-ending details. One of the most frequent deal killers is price or some aspect of price.
If a customer is not completely comfortable with price, and every detail about how the final price was arrived at, the sale is in jeopardy.
Often, the client, having been put off by some aspect of the price, will use even the most insignificant detail to abandon the purchase. He may never even mention price for declining to buy.
Such events can leave the seller frustrated and the company bottom line suffering. There is a solution for ending this kind of customer reticence and dramatically improve sales closes.
It is with price optimization software. Read about some of the main benefits using this software gives a company wise enough to implement it.
Benefits of Having Price Optimization Software
Price Details
Customers are more discriminating and careful with their purchases these days. They want to know they are getting real value for their money. They want to know not only what something costs, they also want to know why it costs what it does.
Tracking
Knowing the costs of materials and labor for each phase of the product creation is a huge advantage. It gives the details the sales staff needs to adequately inform the consumer as to how the final price was arrived at.
As the sales person shares these details, the customer can clearly see the actual value of the company product. A customer who can see and appreciate what has gone into the product and its pricing structure is more apt to purchase what he sees as good value at a reasonable price.
Pricing Consistency
Nothing can be more detrimental to customer satisfaction and retention than wide variance in pricing from location to location.
Learning that a friend or relative bought the identical product in a different location at a much lower price makes the customer feel like he has been deceived by the company.
More Accurate Quotes
With price optimization software, sales staff can give more precise and consistent price quotes. Clearly detailed company costs create a reliably consistent pricing guide. This pricing guide reduces huge price difference quotes among sales personnel.
Each sales person can readily see what each part of the product costs along with how it is priced to the consumer. This framework keeps pricing quick, simple and easy to calculate during sales presentations.
Pricing Deals
This same software makes it easier for sales staff to put together incentive deals for customers. Knowing what each feature costs gives flexibility for how to structure volume deals. Suddenly, sales call results get exponentially multiplied.
Sales people armed with bundling discounts, purchase volume price breaks, and lower prices for preferred features are more likely to close the sale.
Offering many consumers incentive to purchase a product they are already interested in is a smart sales strategy. All of this means increased sales volume with a drastically improved company earnings profile.
Different Things For Which a CPQ Can Be Used
Price optimization software creates a more streamlined, professional and consistent way to determine pricing. It also keeps pricing within the range that is most attractive to customers.
It has often been said that ‘price sells cars’. Big news, price also sells everything else in our economy. Price does matter to 99 percent of the buying market.
CPQ software can give your company the price-structuring advantages that companies who do not use it do not have. This software lets you finally get a solid handle on pricing your company’s product in a way that is easily manageable, competitive and profitable.
Conclusion
To know that you have every advantage necessary to succeed in the extremely competitive area of product pricing, check out this software. It can finally put all company partners on the same page and result in more consistent sales with the best pricing.
