Non-price competition is a strategy that implies attracting customers and increasing sales by providing superior product quality, a unique selling proposition, a great location, and excellent service rather than lower prices. It helps brands stand out and win new consumers.
In this article, we’ll unveil which businesses use non-price competition. We’ll also review the benefits and methods of non-price competition.
Which companies use non-price competition?
Today, price is one of the many factors that influence customer decisions. Nowadays, people pay close attention to quality, features, customer service, and many other things. They influence their consumer experience hence buying decisions as well.
Many brands rely on non-price differentiators like quality, unique selling proposition, competitive advantage, location, customer service, etc. The majority of them you use daily. For example, Airbnb provides vacation rentals, apartments, beach houses, and unique homes. The company offers its product as a service. The brand’s team ensures an amazing experience for its users and cares about their safety and comfort. Other businesses that rely on non-price differentiators are oDesk, TaskRabbit, and Fiverr.
In the technology industry, Apple remains a leader in product sales. The company has relatively high prices on its iPhones, iPods, MacBooks, and iPads. The brand relies on the quality and endurance of its products, and that’s why people still prefer to purchase Apple products rather than its substitutes.
Starbucks is one of the most successful coffee companies in the world. People know them for their tasty coffee and names on drinks. Consumers visit its coffee shops despite the high prices for food and beverages. People like to go to Starbucks and pay around $5 for a small cappuccino rather than visit McDonald’s and buy the same drink for $3.
Now that you know what types of companies use this marketing strategy, it’s time to unveil the advantages. They will help you figure out how you can benefit after implementing the approach.
Benefits of Non-Price Competition
You can reap numerous benefits after successfully implementing non-price competition. Let’s discover them in this section.
The benefits of non-price competition include:
- increased demand;
- higher sales;
- bigger market share;
- higher revenues;
- competitiveness within the market;
- the possibility to stand out;
- positive reputation;
- brand recognition;
- constant product improvements;
- wide customer base;
- healthy competition.
Now that you know the pros, it’s time to jump into the methods. The next section will help you figure out how to incorporate non-price competition approaches.
Methods of Non-Price Competition
Non-price competition implies using various approaches to catch prospects’ attention and convert them into loyal customers. We’ll review the most effective ones to use for your business. They will help you shape a big customer base, drive sales, and increase customer loyalty. Let’s explore them all.
- Provide superior quality. Often companies differentiate themselves from others by providing customers with high-quality products. It causes higher prices. Although the price might be relatively high, people still buy the products because of the quality they can’t find in any other brand. For instance, Apple users will continue to purchase Apple products because they already know they will serve longer and provide an exceptional experience.
- Ensure excellent customer service. Customer representatives play a great role in building a positive reputation for your company. Make sure to have friendly, open-minded, and compassionate customer support agents. They should listen to customers’ pain points, answer questions, and solve their problems. Customer support agents also need to participate in customer onboarding. If your team does a great job, you can attract new customers, win sales, and receive higher revenues.
- Create loyalty programs. Many companies have already implemented loyalty cards. They contribute to customer loyalty and more sales. Consider rewarding your current consumers with cashback and points. This way, the number of repeat purchases will increase. Many airlines have already incorporated this technique into their business. For example, customers of Emirates can redeem their Emirates Skyward Miles to book a flight to any destination in any class. Customers earn points when they book tickets with Emirates.
- Provide after-sales service. The communication with consumers doesn’t end when you get a sale. You should help your customers after the purchase when they face problems with a product, onboarding, warranty, repair, etc. Your customer support should react to users’ inquiries. They need to provide warranties, free repairs, product changes, or consultations. Great after-sales service encourages customer trust and brand loyalty. For instance, Whirlpool kitchen appliances have a one-year warranty from the date of purchase.
- Implement innovation. Since customer demand, trends, and preferences often change, companies should be ready to adapt. They need to be open to innovations. To stand out from the competition, you should be ready to roll out new product features and pivot to new demographics. For example, when the demand for water-resistant products increased, Samsung developed waterproof watches and smartphones. They implemented new technologies to provide these items.
- Ask customers for reviews. Customer opinion is essential for business owners and other consumers. Ask your current consumers about their experience using your product. They can share positive reviews about your product or service on various platforms in open access like Yelp, Facebook, and Google My Business. Since people pay attention to the recommendations of their friends and read reviews before purchasing a product, customer reviews will help them make a confirmative decision. For example, if you sell on Amazon, let users leave comments about your product. With SendPulse, you can ask for reviews through multiple channels, such as email campaigns, chatbots, and SMS. The service allows you to create an automation triggered by purchase and send emails asking for feedback or review.
- Ensure a unique selling proposition. The modern world requires you to provide customers with customizable products. These goods can serve the needs of various people. For instance, lactose intolerant people now have many substitutes for dairy products. Vegans can enjoy gluten-free, sugar-free, and vegan products in different industries. For example, Body Shop provides vegan products not being tested on animals.
- Offer free delivery. Reward your customers with free delivery once they buy for a certain sum of money. It will encourage them to purchase although the price for the product isn’t reduced. People often pay attention to perks like free delivery, gifts, rewards, discounts, etc.
Congrats, now you know what non-price competition is and why it’s crucial. Use our methods to improve the profitability of your business.
Last Updated: 29.09.2022