How Do Brands Compete In 2022?
Published: April 6, 2022
Brands compete everyday in the marketplace. Each trying to outdo the other and muscle the competition out. But here is a surefire way any company can win those loyal customers and scale faster!
Which do you think carries more weight with the customer? Price or experience?
You may be surprised to find out what 2022 customers are really looking for.
It’s one thing to want to be competitive with your pricing, thinking that that is what is going to set you ahead in the market. Trying to undercut your competitor and make up for it with volume is this strategic move, however, the trend here in 2022 is not price. That’s not to say that price is not an issue. However, companies these days are no longer battling it out for the one with the lowest price.
Today, the battleground lies with the experience the customer will have with the brand.
Gone are the days where people would be willing to suffer through a few inconveniences, poor customer service and support, and choosing a brand that didn’t care just to save a dollar or two. A lower price may still attract the attention of potential customers, but it’s the experience that they anticipate having which draws them in.
Brands Compete By Marketing The Customer Experience
Marketing a product or service to a potential customer base has so many different moving parts. Keeping up with the current trends will help the marketing team understand what triggers will elicit a response from the people they’re trying to reach.
It seems that today there’s been a reversal to a certain degree of what the focus is when it comes to marketing. You may recall seeing ads in the past where the main focus is the price. Then the experience that you’ll have seems like almost a side note. As if the customer will choose the product or service based solely on the price. And there was a time that may have very well been the case.
But here since 2020, we’re seeing a Copernican revolution with customers as brands compete. They really aren’t so interested in cost savings as they are and how is using this product or service going to make them feel.
Is this product or service going to give me a sense of well-being? Am I going to go away from this experience with a positive outlook and feeling good?
Are they going to take good care of me?
These may not be conscious questions that the customer will ask out loud. But it is what they are searching for.
Price Wars Of Ye Ol’ Days Of Yore
Take a look at the ad below. An example of what I’m talking about how brands would compete in the past. Obviously it’s dated.
See how the price is the main focus? Look how much larger the word FREE is compared to the description of the experience. It’s what this marketer assumed would grab people and suck them in. Taking a look at the economy of the time this ad was put out, it most likely did the trick. The experience the customers were going to get came from having more money to spend OR being able to afford this product.
But this is no longer the case. Price is not always the main focus in 2022. Sure, marketing competitive pricing may get customers interested in exploring more, but reviews about an amazing experience will carry more weight and seal the deal.
Brands Compete Beyond Price Perception
Have you seen the ads that say “we’ll be any price!”? What perception do you think that statement delivers? It may sound competitive, but you have to keep in mind that lower prices can have the look and feel of lower value.
Higher prices do give the perception of more value. But even more, it can give the expectation of a better experience. With a slightly higher price, the question above (are they going to take good care of me?) becomes subconsciously answered. The expectations will be high. Is that something you’re prepared for?
For instance, you’re going to have a better burger with a higher-level atmosphere at the neighborhood grille restaurant than you would at a fast-food joint. Of course, you’re going to be willing to pay more, but you do expect more. If you were to sit down at Applebee’s and they serve you a Burger King cheeseburger at a dirty table, then you most likely won’t be a happy camper and won’t return.
The same would go with flying first class as opposed to coach. You’ll expect a better flying experience as you fork over the higher price.
Brands understand this now. They also understand that customers do actually enjoy giving great reviews and recommendations. When they have an amazing experience, that is. By them being able to sing your praises, it can justify them paying just a little more. Furthermore, this lets others who may be shopping around know that your customers value your product or service. And in turn they will also begin to see your value—before they even purchase!
It’s absolutely imperative that as brands compete in the marketplace, they strategically position themselves to blow their customers away. Or their competitions will. Even with lower prices, if the customer can get a better experience somewhere else for a few pennies more, that’s where they’ll go.
How Customer Experience Can Be A Competitive Advantage
Another thing brands compete for and it can be said in two beautiful words. Customer retention! The better the customer experience, the higher the lifetime value of the customer becomes. And of course, the higher the chances for word-of-mouth advertising.
Even if there needs to be a price increase over time!
For instance, In a 2019, Forbes article reported that American consumers are willing to pay 17% more for a brand that gives great customer service and experience.
The fact is, customers want less hassle these days. And what’s more, they’ll pay just a little more for it. People are busy and lead busy lives. I mean, we all value our personal time, right? We don’t want to spend it fussing around with a brand trying to get issues resolved or with a company that just doesn’t seem to care beyond due dates and payments.
How You Can Win As Brands Compete!
It’s simple. Give a great customer experience AND competitive pricing. Just because the customer is willing to pay more for a great experience doesn’t mean a company should push the price so high it’s out of reach. Having both reasonable pricing and superior customer experience will ensure your brand or company wins every battle time and time again.
…and both can be achieved through offshore outsourcing to the Philippines with Telework PH.
When you outsource with Telework PH, you are certain to get high-quality agents who are passionate about what they do. Whether it be the back office running the show behind the scenes or as frontliners, the customers will feel the positive impact.
Customer support and service jobs are highly coveted in the Philippines. Especially for western companies. These are positions Filipinos want to make a lifelong career out of. When you build an offshore team you are getting high-quality, educated agents who can adapt quickly and work alongside your in-house team without issue.
With the cost savings involved with outsourcing, you can still be competitive with your pricing. That doesn’t mean the agents are less skilled or less valuable. It means only that the dollar has more buying power in the Philippines. However, if you are thinking about outsourcing only for the price and cost savings, then you’ll really be missing out on everything you have to gain from outsourcing.
If you’re ready to find out more go ahead and book a call with me, Jeff Thompson. Or you can check out my podcast, Telecast PH or even hit me up on LinkedIn for a chat.
You’ll be happy you did. And so will your customers.