2. Be direct
Don’t tip-toe around the issue, as this can be misinterpreted. Instead, be direct and to the point, and avoid long, written essays. Rather than writing a long email or letter, provide a few key points about the updates to the product or service and other relevant information.
You don’t need to go into great detail about your pricing methods or other information about your business. Get to the point as quickly and nicely as possible. Your customers don’t want to spend their whole afternoon reading an essay, especially about something that affects them negatively.
You also don’t need to be overly apologetic in your letter. You can acknowledge that a price increase is unfortunate, but it’s not necessary to go into any more details about how sorry you are for any issues it may pose. You need to be firm in your decision and let your customers know that this is just what has to happen so your business can remain open.
3. Provide your justification
In order to write an effective price increase letter, you need to provide your justification. You can’t just tell your customers that your prices are going to double and expect them to understand why. You have to explain why in your own words, as it can help prevent your customers from reacting negatively.
When drafting your price increase letter, explain to your customers why you’re increasing prices and paint the value of your product in a positive light. Provide details on the value your product will bring to them and that the new price will be worth it.
For example, if you’re raising your prices because you want to improve the quality of your products, make that clear in your letter. Describe in detail how much better these products are going to be, so customers can be excited for them rather than upset about the price increase. If you’re raising prices because your company is growing, tell your customers that. Be honest with them and let them know that the price increase is justified so they don’t think you’re raising it just because you want to.
One of the best customer retention strategies is to connect with your customers. Providing your justification for a price increase shows your customers that you can be transparent with them and that they can trust you, which can improve your customer retention.
4. Be personable
While your price increase letter should be professional, that doesn’t mean you can’t add a personable aspect, too. You want your letter to sound like it was written by a human who empathizes with the frustrations of a price increase and not by a robot that’s regurgitating information. Being personable in your letter is also a great way to connect with your customers, which is important for customer retention.
Remember, you’re a human talking to other humans rather than a standard marketing email designed for a large audience, so make your price increase letter compassionate, show your customers you appreciate them, and address any concerns. Even if you’re planning to automate your emails, make sure there is still a personable aspect to them, such as including the recipient’s name. When your customers can tell that you took the time to craft an email, they’re going to respond in a much more positive way.
5. Offer support
With a big change, especially when it comes to price, there are going to be a few customers who may be upset or confused, so you need to offer a way of support in your letter. This can be directing readers to an FAQ pricing page where they can find more information or providing information for your customer service team.
A price increase can be detrimental for some customers, especially if they have to adjust other aspects of their life to account for the increase. So, it’s crucial to offer support at the end of your letter and let your customers know that you’re there for them. Reassure them that they can always go to you if they have any other questions or concerns about the price increase. You want to give them the opportunity to reach out because if you don’t, it’s likely they’ll turn to your competitors.