I came across some research last week that initially struck me as head-slappingly obvious, but on second viewing struck me as worth sharing, simply because we sometimes miss the obvious in our hustle to meet deadlines and stay within our budgets.
The article confirmed what we intuitively know: Great creative values in your marketing support your brand image and a higher price.
What is not obvious and needs repetitive emphasis is that scrimping on creative, even if it seems to make momentary sense, can damage your image and your ability to charge the price you want.
Small businesses scrimp on creative all the time. Whether it is writing copy yourself or using your cousin for graphic support because he will work cheaply, the impulse to save a few dollars is strong.
Resist this urge! In a competitive world, consumers make choices based on perceived value, not just straight price. Even if your price is better, you may lose out to a brand that has conveyed a more trustworthy image to the consumer.
What did the research say?
You can read the full write-up here (and I recommend it), but here are some highlights:
- The quality of the ad measurably changed the viewers’ price expectations.
- The variability in price expectations is highly correlated with advertising quality.
- It is not just the rational features and benefits of the product being communicated by the advertising that drives price expectations.
- By overlooking advertising's role in supporting premium pricing, and the corresponding contribution it can make in support of higher profit margins, advertisers run the risk of underestimating the return they can make on their advertising investment.
Why is price expectation so critical? Consider your own shopping behavior. If you go into a store expecting an item to cost $50, and you find it costs $75, you might change your mind about buying it. If, on the other hand, your price expectation of $50 is met, you are far more likely to make the purchase.
This research confirms that the quality of your marketing (website, e-mails, local ads, etc.) all combine to communicate the quality of your product or service to your target audience. So find the time and money to polish up your public appearance:
- Get a fresh perspective on your website from outside sources. What sort of quality message is it sending, especially when compared to your competitors? Consider sending a survey to your customers asking what impression it gives them. Does it support the price you aspire to charge?
- Spend a bit more on a quality designer and copywriter to put a really nice gloss on your inbound and outbound marketing components, even those ads you run in local community newspapers.
- If you are a retail establishment, what view do your site visitors get when they enter? What does your staff look and act like?
- If you have outside sales, what do your reps look like? Consider mandating a dress code, and dress up their sales collateral to match the image you wish to portray.
These are just a few areas where you could take a dispassionate look to see how you present your business publicly. Ask yourself constantly: What message is the quality of my creative sending to my target audience?
Caveat: I know that you may be in the business of selling cheap goods at great prices. I am not saying that such a business needs to present itself like a Louis Vuitton or Piaget would. But, within the realm of your niche, how can you present yourself as the highest quality competitor?
Think about it this way: Would you prefer to generate a lead from someone expecting to pay $50, or one from someone expecting a $75 price? This research confirms that better quality creative should generate that better quality lead, allow you to add a small premium to your price, and therefore pay for the extra investment over time.
