How B2B Business Can Command Premium Rates
B2B business, unlike the b2c business, does not deal with direct end users 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. The trick is that if customers have a perception that your interests are primary to theirs, they will replace you as soon as possible. It is imperative that you put the interests of the customers ahead of yours. This helps to create trust which is one step on how to command higher rates.
Gallup Research Company has done studies on how B2B business can increase their profitability. They found that increase in the performance of the customer’s performance was directly proportional to how much the client’s of B2B business were ready to pay. They found that customer engagement was responsible for increase in customers performance. They, therefore, recommend that B2B business increase customer engagement to increase their rates.The main reason why customer engagement featured proficient was that it enabled cooperation between the customer and the service provider.
The increased level of openness ensured that the service provider understood the status and circumstances of the client at all times. They were thus able to deliver advice based on the current circumstances. When a B2B enterprise offers services that facilitate smooth flow if clients business, they develop more trust and confidence. The services offered by B2B form becomes integral in the company routine. When your services become critical to them, they will need you at all times. When your services are indispensable; it is easy to command higher rates from your customer.
Achieving this is only possible when you know the client in and out. You should study the client, industry, and customer. You will be in a position to bring advice and services that put your customer at the best position in the industry. Gallup research recommends that you focus on your most important customers to achieve this level of understanding. The definition of most important customers is inclusive of areas where you have the best expertise and the client is more cooperative. An area in which most of your clients needs service can help you define your most important customer.
Success of your customer should be the main goal that you pursue. Price competition is not very effective in the long run. Customers will easily shift to another service provider who charges more but delivers great results. In case you are convinced that pricing is the only way to outdo competition, take time to reevaluate your strategy. It will give you an opportunity to see areas that your customers might be needing expertise services greatly. They are prepared to pay more for better services.