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Follow on Google News | When Challenging Your Customer BackfiresSecond consecutive experiment proves insights-led messaging alienates existing customers when communicating renewals and price increases
That's according to recent academic studies conducted by social psychology professors who put would-be customers into "buying simulations" Over the last 18 months, Corporate Visions, the leading marketing and sales messaging, content and skills training company, has contracted three experiments with leading academic researchers to test the impact of supposed challenging or provocation- • New Sales Opportunities – winning new business or stealing competitive business. • Renewal Sales Opportunities – ensuring customer loyalty and capturing contract renewals • Price Increase Opportunities – effectively passing along price increases to expand revenue while minimizing risk In the first experiment, provocation- However, in the second and third experiments, which focused on existing customers, this approach became the biggest loser. Turns out, when you are trying to renew a customer, or pass along a price increase, introducing a challenging message with "unconsidered needs" will put you at significant risk of losing them. The most recent experiment (https://corporatevisions.com/ • 18.8% less favorable attitudes • 15.5% less likely to renew • 16.3 % more likely to switch The actual winning approach focused more on reinforcing your customer's status quo bias instead of disrupting it. "The picture is compelling," "It was amazing to me, how the pattern was so clear. It is rare to see such strong and consistent results across so many different groups in this kind of experiment," "It's clearly not a one-size-fits- Based on the experiments, which also revealed the best approaches for customer messaging success, Corporate Visions has developed situational frameworks for helping companies create and deliver messages for each of the key selling moments: Why Change? – Telling a story that defeats status quo bias and gets prospects to agree to change Why You? – Telling a follow-on story that clearly differentiates you from the competing alternatives Why Stay? – Telling a story that convinces existing customers to renew their relationship with you Why Pay? – Telling your customers a story that is most likely to generate a positive response to a price increase More details on the experiments entitled "Why Stay?" and "Why Pay" can be found in the Corporate Visions resource library (https://corporatevisions.com/ About Corporate Visions, Inc. Corporate Visions is a leading marketing and sales messaging, content, and skills training company. Global B2B companies come to us when they want to: • Create Value – with messages, content and skills that break the status quo and differentiate your solutions from competitors • Elevate Value – with messages, content and skills that build a more effective business case to justify executive decisions • Capture Value – with messages, content and skills that maximize the profitability of each deal and customer lifetime value Learn more about how Corporate Visions can help you have conversations that win at https://www.corporatevisions.com End
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