Service seekers are excellent customers to target, reports Forrester’s Bruce Temkin.
In previous research, Forrester created four segments of consumers based on their interest in low prices and good customer service: service seekers, price seekers, price & service seekers, and others. The research firm examined the loyalty of these segments across 12 industries.
“Across all industries, service seekers were more likely than price seekers to buy more products, stay with their current provider, and recommend their provider to friends and colleagues,” noted Temkin.
It validates our belief that merely positioning your product on the lowest price is a slippery route. There’s always a business that will come in and undercut you, and swiftly steal your marketshare.
Alternatively, the more reasons you give people to choose your brand, price becomes a less important purchase decision factor. As a result, you’ll attract people that value quality, are willing to pay for it, and will stick around for the long haul.