Questions

What are some simple ways could we differentiate and position ourselves as more of a premium brand (substantiating future pricing increases)?

My company offers internet marketing services to larger companies with higher budgets, but we are looking for simple ways to convey position ourselves as a premium brand and substantiate our current and future pricing. Our current service rates are about 2x what our competitors are charging, but we are looking for simple ways to substantiate our higher prices and some simple perks which we could offer clients which they would appreciate. Other than the obvious "improve service quality," all ideas are welcome, simple or not. Those who give solid and complete ideas/concepts to achieve our goal of positioning ourselves as a premium brand may be contacted by our company for further consulting.

6answers

In order to be recognized as a premium brand, you need to offer and deliver a premium quality that stands the reality test. If your product is premium, as you promises, just design a consistent and premium quality in all, all aspects. Create the premium aura. Be consistent over the time. Engage your people on a premium internal culture and behavior. Engage your client with a premium identity. Create the same psychic atmosphere that you live when you are in a luxury goods store.
There is no simple ways. There is ways to be sucessful. Build a premium way.


Answered 6 years ago

Your branding & positioning needs to be built arounds your true differentiators. Generally those are one of three things (i) price; you supply the same product/service as the competition but at a better price, or with a better structured payment plan (ii) quality of service; you supply a better service at the same price, or at a justifiably higher price (iii) innovation; you supply something different - a service with a unique dimension to it.

You also have the potential to develop some 'luxury' effect (and I use that word in the strict Economists definition where an upward sloping demand curve is in effect) - that is by pricing yourself higher you create the perception that your product/service is in some way better or unique and increase demand. There is no easy way to do that - you just need first class marketing, service, support and patience.


Answered 6 years ago

Congratulations on being able to charge two times more than your competitors! My firm helps companies create names that would aspire to the same goal. To help you substantiate your premium-priced position, I advise that you focus on establishing your company as offering better value, not just simply adding more perks. It also sounds like you are looking for some immediate, tangible tactics to achieve this. One efficient way to create value quickly (with innovation and differentiation) is to create a sub-brand architecture of proprietary products (or services) with unique brand names and visual identities that reflect your brand story and that the competition cannot claim.
Starbucks demonstrates this strategy. How did Starbucks get away with charging much more for their coffee? One way was that they created sub-branded products to help define their premium value. It is no accident that Starbucks has 328 records in the U.S. Patent & Trademark Office, the vast majority of them for trademarks. Starbucks offers not just several different kinds of coffees, but Starbucks Reserved® coffees. Refreshers™ and Frappucino® are only available at Starbucks. Starbucks VIA® instant coffee is like no other instant coffee. These additional brands express more about the Starbuck’s brand––and its “great coffee” story––than what their customers receive from using their products (and services). The sub-brand architecture is at least one immediate tactic to help you support a higher pricing strategy. Connecting with your target audience and establishing a trusting relationship is the longer-term objective. Any questions, please call. Good luck!


Answered 6 years ago

In the Internet Marketing space, you have an opportunity to cash in on fear. Sorry, but it's true. There are a gazillion people hanging their shingle calling themselves SEO and social media specialists. Many are good. Most (especially the cheap ones) are garbage.

Companies that shop around on price actually do themselves a disservice, because they end up pushing their suppliers to cut corners, to automate, etc. Quality suffers.

That has always been the case, and more so now that Google has unleashed the fear of God in website owners, making any Internet marketing risky for companies that value search engine rankings.

I agree with the comment that you don't have to offer special perks; just offer all the same services as everybody else...BUT without the risk. Because you are careful. Because you are quality. because your tactics will stand the test of time. While this is not something you can actually guarantee, it can be a huge differentiator. I no longer take clients for a low price; I simply cannot justify doing a half-ass job for a client, when I know there's a good chance it will blow up in their faces in a year or two. Low quality now carries just too much risk. Sell a risk "lite" service; the companies that can afford a premium service will value the security of their brands, and will pay for that kind of premium service..


Answered 6 years ago

If you can show hard data that you are quicker and better than the competition, you can charge more.

Initially you do sweetheart deals, for sure - but once you have customers and data, don't fall into the classic pitfall that you feel you need to charge the same or less.

Segment your offering into product market fit: The right product for the right customer. That can allow you to scale your costing.

I always enjoy "supersize me" options. You offer the "standard" package and show comparative benefits vs the competition. This places you as premium in the mind of the consumer, but no-one wants a "standard" package - or at least not for very long.

Show them premium and enterprise/ diamond packages with significant benefits and as long as you're known for your excellence, the right customers will open their pockets.

Transparency of data is what it's all about. Show the benefit. Show the delta.


Answered 5 years ago

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