Whether you’re a product or service based company, the end of the Financial Year is usually when you realise you need to make some changes to the business to improve profits. The most common way is to increase the pricing, but telling this to your customer isn’t the easiest thing to do.
Below are some handy tips to help you send out those email notices to your existing customers.
Be transparent and upfront about why you’re increasing the price. People will be more accepting of the changes if they know why you’re doing it. Also, when you’re sending out an email with the announcement, rather than just sending people away to your new pricing page, include an inline image of the new pricing model.
If you include pricing information on any of your marketing materials, be sure to promptly update this to reflect your price changes. You don’t want any inconsistencies in your pricing.
Offer to chat with your customers. Let them know that if they have any queries regarding the price change that they can discuss it with you. Don’t send out these emails from email@example.com as you want to leave your customers feeling they’re being looked after and that their feedback and queries are important. Ensure you’re using an email address that they know they can contact.
Offer “lock-in” pricing to existing customers for a period of time – ease them into the changes.
This shows your existing customers that you care about them and may increase their loyalty to you. Provide a timeline by giving them a heads up of when the change will apply. Allow your customers to be prepared for it. You may also want to offer them some options/choices in pricing or packages rather than forcing them to accept the price increase as is.
Increase the perceived value of your product/services. When talking to your customer remember to focus on the positive and avoid sounding apologetic. Rather than focusing solely on the price increase, let your customers know what they will get in exchange. Avoid raising prices for the sake of raising prices. Remind customers why you’re a good fit for them and vice versa. Customers won’t mind paying more for a product or service they love.
Last but not least, thank your customers for their continual business with you.
At the end of the day, just like any relationships, it’s all about good communication & transparency. By being up front, you’re earning your customer’s trust and respect and building a better relationship for the future. Good luck!