Pricing Can Make Or Break The Customer Experience: Find The Issues That Drive Away Your Customers!

Maxie Schmidt-Subramanian

Pricing matters when it comes to your customers' experiences and loyalty! You are not quite sure? Let's do a short quiz:

Have you ever:

  • Left a rental car counter flabbergasted by the final price?
  • Given up on finding a new mobile phone plan when the sheer number of options obscured the best choice?
  • Checked your latest bank statement only to find an unexpected new fee?
  • Squeezed into a middle airplane seat because the alternative meant shelling out $20 for a preferred seat assignment?
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Brand Loyalty Is Declining. Total Product Experience Chains Can Help.

JP Gownder

Product strategists in many industries (from CPG to consumer electronics to financial services) share a challenge with their marketing colleagues: how to leverage the power of brand. Product strategists have a number of strategic tools in their toolboxes for differentiating their products from competitors’ offerings: features (a different taste, a new technical capability, or a higher interest rate, for instance); channel, price, or brand (or based on some combination of these factors). For the moment, let’s think about brand, because some product strategists design and build their products based largely on the promise implied by their brand name.

Forrester’s new research report – leveraging a multi-year analysis of Consumer Technographics® data – shows that while brand is important, brand loyalty (defined as the propensity to repurchase a brand) has been waning. The new report, entitled “Brand Loyalty Isn’t Enough For Products Anymore,” reveals that:

·         Brand loyalty is on the decline. Brand loyalty dropped in the U.S. from 2006 to 2010, our data shows. One reason? The Great Recession. Another? The strength of brands themselves: competing brands in the marketplace entice consumers to try new brands.

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