Low Price Doesn’t Guarantee Loyalty Warns Credico UK

Field marketing specialists Credico UK is adamant that when it comes to customer acquisition and retention, offering lower prices doesn’t always seal the deal. The firm has released a statement on where customers really stand on the ‘quality service’ versus ‘low price’ debate.

Over the last few days, speculation and rumour have been rife within the retail industry, with multiple news sources claiming that supermarket giant Tesco is in talks to open a discount chain. The development of this separate value brand has been cited as a move to rival cut-price chains such as Aldi and Lidl. However, Tesco is remaining tight-lipped on the rumours.

About Credico UK:  http://www.credico.uk.com/about/

While  Credico UK can understand why the big four supermarkets may feel threatened by cut-price chains, the firm is keen to highlight that offering lower prices is not a fail-safe solution. There are many factors aside from price driving people towards the likes of Lidl and Aldi. For example, these chains have made a concise effort over the last few years to promote the quality of their products, and their commitment to sustainable food production. Lidl launched a series of television adverts aimed at busting the myths that their products were of poor quality, showcasing a selection of independent UK based farmers and suppliers. It has also published details of its ‘A Better Tomorrow’ strategy, which outlines its commitment to create sustainable supply chains, protect the environment and help customers make healthier and more informed choices.

Credico UK believes these values display a deep understanding of what today’s consumers are looking for which is a powerful influencer in terms of generating brand loyalty. ‘Prices do not influence emotions, to trigger a connection with a customer and keep them coming back. Brands need to focus on the experience they offer and the values they are promoting’ outlines a spokesperson from Credico UK.

Research has repeatedly found that customers are willing to pay a higher price if it guarantees better service. Most notably, the 2012 Global Customer Service Barometer from American Express outlined that 3 out of 4 consumers have actually spent more with a company because of a history of excellent service.

Credico UK is confident that in the price versus service debate, providing a quality service and displaying a deeper understanding of customer values is the key to long-term retention. ‘This is one of the reasons we operate purely within face to face marketing . It provides a platform to really get to know consumers and understand their needs concludes Credico UK.

Sources: https://www.theguardian.com/business/2018/feb/11/tesco-planning-discount-chain-to-take-on-aldi-and-lidl

https://www.marketingweek.com/2012/06/18/consumers-want-more-than-just-lowest-price/