Covid restrictions are lifting in some parts of the world and the economy is booming in some sectors. Some labor and material costs are rising due to shortages, as is customer demand. Many brands have high pricing power at the moment, making price hikes almost inevitable. Brand managers may be clued in on the size of their price increase, but it’s no easy matter to communicate this unwelcome news to customers.
If You’re Going to Raise Prices, Tell Customers Why
A research-backed approach to communicating the change.
June 29, 2021
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Summary.
Communicating a price increase to customers is never a pleasant task. It has the potential to stir customer service complaints, social media outrage, or simply lose customers altogether. The author suggests three research-backed ways to blunt customer discontent: 1) be forthright and avoid euphemistic messaging, 2) explain the genuine reasons behind the price increase, and 3) use a value narrative linking the price hike to the delivery of customer value.