Study: My Understanding of Resources
January 15, 2017
How B2B Business Can Command Premium Rates
Unlike in b2c businesses, B2B businesses do not deal with the end user of a product. They specialize in helping b2c customer serve their customers better. If you are engaged in B2B business, you have your own interests to pursue. However, should clients imagine that you are more focused on your interests rather than theirs, they will easily replace you? Putting your client’s interests ahead of yours is critical here. By this, you will create trust which is a plus towards commanding higher rates.
Gallup Research Company has done studies on how B2B business can increase their profitability. The study found that firms are prepared to pay higher rates if their performance was improving or high due to services offered by the B2B service provider. They found that customer engagement was responsible for increase in customers performance. Their recommendation was that the best way to command higher rates was through increasing customer engagement.Customer engagement featured as an integral factor since it enhanced cooperation between the service provider and the client.
The increased openness resulted in an environment where the business understood the status of their customers at any time. Hence, they could offer advice that is timely and solution to current problems. There is an increase in trust when a client goes through a situation smoothly regards to the advice offered by the B2B enterprise. Their services become essential in daily activities of the company. When your services become critical to them, they will need you at all times. At this stage when you are deemed fundamental, you can command higher rates.
To achieve this, you need to understand your client in and out. You should study the client, industry, and customer. Armed with this, you can render services that push your client higher above the competitors. Gallup research advises B2B business to concentrate on the most important customers to achieve this level of knowledge. Defining the most important customer is a bit subjective but must incorporate areas that best match your expertise and the most cooperative client. If you realize that most customers have a certain need, this can be the defining factor of who are your most important customers.
Achieving success for your customer should be your main goal. Price competition is not very effective in the long run. Clients will make a move and go to a higher priced competitor who has better services. It is imperative that you take a re-look and evaluate your strengths if you still believe that price is the best way to outdo competition in your niche. It will allow you to spot gaps that your clients might be looking for a sealer. Customers are more than willing to pay a premium charge if they get more.