How to communicate if your prices go up

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The general rise in prices that we have been experiencing in recent months in all types of products and services is causing a lot of talk lately. Inflation affects energy, food and all types of consumer goods.

This situation has caused companies to notify their customers of the bad news of a price increase. In our article today we are going to tell you how to do it and what things you should avoid.

How to approach the subject
With sincerity
A 2022 survey by Gartner revealed that nearly 40% of consumers want honest and detailed explanations about price increases. Customers prefer clear, direct explanations without any beating around the bush or placing external blame.

Consumers demand transparency from brands and their authenticity is one of the main factors affecting consumers’ purchasing decisions. Authenticity builds trust, which is key to maintaining customer loyalty. In fact, trust is placed above product quality, convenience, and reputation. Trust in the brand is more important than consumers’ interest in the product.

With this in mind, being truthful about the reasons for price changes is key to preserving the delicate relationship with the customer.

Sharing the actions you are taking to help manage pricing
In the same Gartner study, respondents revealed that they want brands to share some of the decisions they are making to minimize pressure on customers and avoid future price increases. For example, rethinking packaging, adjusting profit margins or offering promotions or discounts.

Not surprisingly, almost 40% say that companies should absorb some or all of the costs of inflation rather than passing them on to customers through price increases.

The more active your company appears to be in remedying this situation, the more loyal your customers will be.

Personalizing your messages
Price increase notifications are not pleasant to receive. Brands should soften them by personalizing their message.

Forget about mass emailing . Instead, send one email to each customer, addressing them by name. Whether it's a small or large company, use the variables that all email marketing platforms offer today.

Another way to personalize your messages is to use a person's email address and name instead of a generic one like "[email protected]."

Seeing a message signed by a manager or someone on their team adds a personal touch that customers appreciate.

Notifying them as soon as possible
While the amount of notice you should give of a price change may vary depending on the type of product or service your business offers, the sooner you can notify your customers, the better.

Think about it this way: If you were renting a house, how would you feel knowing that in a couple of days your rent would go up? You would probably disagree with the move and question your lease renewal, right?

Generally, you should give them at least a month's notice of a price increase. This gives them time to take advantage of the current prices or make any necessary adjustments.

However, how far in advance you notify your customers will vary greatly depending on the type of product or service you offer.

Things to avoid
Send generic emails
While it is always important to personalize all communications with your customers, this is a crucial aspect when you have to deliver bad news like this.

If your company is very small, perhaps making a phone call might be a better idea, but for larger companies, where this is not feasible, sending a personalized email is mandatory.

No one likes to be treated like a number, so take the time to add that personalization that will make your customers feel valued.

Do not offer consultation options
When you announce a price change, some customers may have questions and concerns. It's important to prepare for this and have a plan in place to address it. Your customer support team should know how these changes will affect customers, when they will go into effect, and any other relevant details.

Also, provide your customers with an easy way to reach your brand. Maybe a dedi germany mobile phone number list
Not notifying your employees
Once a price change has been decided, it is important to notify your employees first.

This is especially important for employees who perform customer-facing duties, as they need to have the most up-to-date information on products and/or services. You will avoid price misunderstandings and a deterioration in your relationship with your customer.

Structure of your message
When a price increase occurs, the message can be structured as follows:

Announce the price increase.
Provides context and reason for the increase.
Emphasize the ongoing value you want to provide.
Thank you for your customer support.
Explains how to contact for follow-up questions and concerns.
Want to see a sample template?