The general rise in prices that we have been suffering in recent months in all kinds of products and services has been causing a lot to talk about lately. Inflation affects energy, food, and all kinds of consumer goods.
This situation has caused companies to notify their customers of the bad news of a price increase. In our article today, we are going to tell you how to do it and what things you should avoid.
How to approach the subject
Sincerely
A 2022 survey by Gartner revealed that almost 40% of consumers want honest and detailed explanations about price increases. Clients prefer clear, direct explanations, without detours or external culprits.
Consumers ask brands for transparency and that their authenticity is one of the main factors influencing consumer purchasing decisions. Authenticity builds trust, which is key to maintaining customer loyalty. In fact, trust is above the quality, comfort, and reputation of the product. Trust in the brand is more important than consumer interest in the product.
With this in mind, being truthful about the reasons for price changes is key to preserving your sensitive customer relationship.
Sharing the actions you are taking to help manage prices
In the same Gartner study, respondents revealed that they want brands to share some of the decisions they are making to minimize pressure on customers and avoid future price increases. For example, rethinking packaging, adjusting profit margins, or offering promotions or discounts.
Not surprisingly, almost 40% state that companies should absorb part or all of the costs of inflation instead of passing them on to customers through price increases.
The more active your company seems to remedy this situation, the more loyal your customers will be.
Personalizing your messages
Notifications about price increases are not pleasant to receive. Brands need to soften them by personalizing their message.
Forget mass emailing. Instead, send each customer an email, addressing them by name. It does not matter if it is a small or large company, use the variables that all e-mail marketing platforms offer today.
Another way to personalize messages is to use a person's email address and name instead of a generic one like “info@yourcompany.com”.
Seeing a message signed by a manager or someone on your team adds a personal touch that customers appreciate.
Notifying them as soon as possible
Although the anticipation with which you must communicate a price change can vary depending on the type of product or service your company offers, the sooner you can notify your customers, the better.
Think of it from this perspective: if you were renting a house, how would you feel knowing that in a couple of days your rent would go up? You probably wouldn't agree with the move and it would make you question the renewal of your contract, right?
In general, you should notify a price increase at least one month in advance. This way, you give them time to take advantage of current prices or make necessary adjustments.
However, how far in advance you notify your customers will vary greatly depending on the type of product or service you offer.
Things to avoid
Send generic emails
While it's always important to personalize all communications with your customers, this is a crucial aspect when breaking bad news like this.
If your company is very small, perhaps making a phone call might be a better idea, but for larger companies, where this is not feasible, sending a personalized email is mandatory.
Nobody likes to be treated like a number. Therefore, take the time to add that personalization that will make your customers feel valued.
Do not offer query options
When announcing a price change, some customers may have questions and concerns. It is essential that you prepare for it and have a plan to deal with it. Your customer support team should know how these changes will affect customers, when they will go into effect, and any other relevant details.
In addition, it provides your customers with an easy way to reach your brand. Maybe a dedicated phone line, an email address, or a chat.
Not notifying your employees
Once the price change has been decided, it's important to notify your employees first.
This is especially significant for those employees who carry out their functions facing the client, since they need to have the most up-to-date information on products and/or services. You will avoid misunderstandings with the price and that the relationship with your client deteriorates.
Structure of your message
When there is a price increase, the message can be structured as follows:
- Announce the price increase.
- Provide the context and reason for the increase.
- Emphasize the ongoing value you want to provide.
- Thanks for your customer support.
- Explains how to contact for follow-up questions and concerns.
Do you want to see an example template?
Dear [Customer Name],
I am contacting you to let you know that starting next [date], the cost of [name of product or service] will become [new price or % increase].
We have tried by all means to avoid having to change our prices. But, due to inflation, [reason #2], [reason #3], we are forced to pass it on to maintain the quality our customers deserve.
We thank you for your trust, and we look forward to continuing to work together to grow your business.
Please contact us via [contact information] for any queries in this regard.
Thank you so much!
[name]
At PGR Marketing and Technology, we are specialists in B2B communication. Count on us to help you develop any communication strategy that your company needs.
