All retailers want to have a price advantage. Still, it is surprising how many do not put practices in place to make their price advantage a true differentiator. Critically, retailers have to promote, their advantage to make sure their customers know the value. Then, they have to make it an easy experience for shoppers.
Retailers who promote a price advantage, take these 5 steps to succeed:
1) Know your competition
Diligently review competitive prices to ensure that you price reductions in the market don’t catch you off guard. When you advertise a price match without realizing that it requires a deep discount, will tank your store’s profitability.
2) Teach your employees
Train all associates to efficiently conduct a reduced price transaction. To keep customers happy, make sure that reduced price transactions are performed smoothly. Waiting for a manager to press a price override key is frustrating no matter how much money the shopper saves. Make sure a head cashier knows the process when management is not in the store.
3) Know the policy
Fully educate your store associates on your policy and how to effectively and politely communicate it to your customers. Expect your associates to be as gracious to the shopper who requests a price match as one paying full price. Spend time coaching your team to get it right.
4) Send a consistent price message
Repeat and reinforce your pricing messages to your customers. Make it memorable. You may hear the message and think it is obvious. But your customers may hear or see it only two times a year.
5) Focus on more than price
Deliver your secondary message to your customers at every occasion. Do not rely on low prices to build loyalty. Always connect your low prices with friendly service, same day delivery, in stock assortment or great selection to help customers remember why they should return to your store.