Customer satisfaction is the best strategy to resist low price competition
Golden Crown Paper
When the product is highly homogenized, it is the confrontation between customer satisfaction and price competition. Customer satisfaction is the biggest barrier to competition and the most effective means to combat low-price competition. Understand this, you can hold you. The price, keeping your customers and keeping your profits, has been repeatedly proven by practice.
Simple product quality is difficult to fundamentally solve low-cost competition, which is a fact we have been reluctant to admit. But whether you admit it or not, the price war drags all the products into the abyss, which is also true!
High quality often faces high costs, but high quality and low price are the ultimate development path for many industries. Any product in the face of price, there will be customer affordability problems, your product is good, the customer's ability to withstand is limited, he will choose relatively low-priced products, even fake and shoddy products. Mobile phone, price is a very important constraint factor, not exactly quality, price will cut consumers into different consumer groups, your quality must be subject to the price range limit. Above this price, you will lose a considerable number of customers, no matter how you explain the quality of the product to him, it is useless. A similar situation includes real estate, a quality property, the price must not be affordable for everyone, and high quality means high prices. There are similar medical devices, Japan, Germany, and the United States. Germany is the most expensive and the price is the highest. Japan is the lowest and the quality is moderate. Price is a very important constraint during this period.
If you maintain high quality and the price does not come, it will leave space for opponents to attack, they are most likely to plunder price-sensitive customers and establish their own beachhead positions. Low-priced customers are usually the vast majority, accounting for the vast majority of the proportion, this situation will force high-quality products to cut prices, under the premise of ensuring quality, continue to reduce costs, price wars will be inevitable. The result is that small businesses are constantly out of the game, and large companies will be more tragic around the price, and no one in the industry will be spared.
The price war is the embodiment of the customer's endurance. He will divide the customer into high, medium and low-end customer groups according to the bottom line of the endurance. Which customer group is the main one, or the size of the whole customer, this is a very important Strategic issues. It is unrealistic to rely on a super product to destroy all customers, especially in the Chinese market. Therefore, quality and price will divide customers into different categories. At the same quality level, those with lower prices will gain an advantage.
Our development in all industries is almost a replica of this model, and Chinese companies are almost a replica of this model in the face of foreign companies. Is there a high-value, high-price double-high product that can resist low-price competition? The answer is yes. This is to take the strategy of “taking product quality as the core and moving to customer satisfaction as the coreâ€.
The recently listed sea fishing should be a model. Haidilao's products are definitely not the best. Many hot pot restaurants have much better taste than Haidilao's hot pot, but why do customers go to the sea to fish and queue up? Why is the same value of hot pot, willing to spend more money? The answer is the customer Satisfaction. If you fight the cost and fight the price, it is estimated that Haidilao will be another scene, and it may not be able to grow and develop.
What is the sea fishing? Some people say that it is a service, this is a superficial phenomenon! The sea bottom is the customer satisfaction, the game area, gifts, nail cutting, taking children, hanging banners, self-sufficient bags, all the elements will be This direction is agglomerated, forming a strong barrier to customer satisfaction, which is the root of the problem. You can't learn in Haidilao. If you only understand the service, you must learn it. But once you understand customer satisfaction is the real barrier to competition, it is the root of all problems. You have learned the essence and learned the fundamentals. Where, it will not fall into the vortex of price competition.
High quality, high price to maintain their own market position, do not fall into the strange circle of price competition, we must strengthen the management of customer satisfaction. And invest enough power in the study of customer satisfaction. We must be convinced that customers are buying customer satisfaction, not just the product itself. In an industry where price competition is rampant, a traditional restaurant chain that can no longer be traditionally, when the products are highly homogenized, the confrontation between customer satisfaction and price competition is staged. In the end, the sea bottom wins and cannot be surpassed. This is fundamental.
Many companies have fully realized this and are on the road to satisfaction. Many people say that we are traditional manufacturing companies and cannot be like sea fishing. This only shows that your understanding of the customer is not enough, and the understanding of customer satisfaction is not enough. An engine company, if it is very difficult to break through from simple products, it is even more difficult to hold customers, facing the impact of low prices, the most effective barrier is customer satisfaction. What customers care about most is what we should do the most, and we should do our best to build it. For example, to improve the level and timeliness of after-sales service, it is necessary to adopt a large number of quick-change service methods, reduce any intermediate maintenance links and so on. The engine is a means of production, the key to it is that it does not affect production, and it must be able to resume production quickly under any conditions. Therefore, in many cases, the engine's service network determines the final sales situation. Because the service determines customer satisfaction.
Customer satisfaction is the biggest barrier to competition and the most effective way to fight low-price competition. Understand this, you can hold your price, hold your customers, and keep your profits. This has been repeatedly proven by practice. Today, Haidilao has emphasized it once again!
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