Something to play on as a company? Not necessarily. We see in many sectors (particularly in the telecom/internet and energy sector) that no-frills customers indicate less often that they still think they will be a customer of the company in question in a year. No-frills customers are and remain continuously looking for the best price. The group of consumers who are more looking for a no-nonsense product/provider also seems less loyal. They feel less connected to a brand or provider. This certainly plays a role in the energy sector, where no-frills customers experience few advantages with their current energy supplier. Energy is generally a low-involvement product, which means that customers are less willing to pay more for good service.
A sector where we see the exact opposite happening is in the supermarket sector: no frills customers more often indicate that they think they will still be a customer of the supermarket in question in a year. In general, people choose a certain supermarket more consciously. Products that you buy in the supermarket are tangible and you have direct experience and contact with employees on the shop floor. As a result, consumers are more structurally looking for the lowest price (instead of the best deal at that moment).
Lidl as a successful no-frills brand
A good example of this is Lidl . In the no frills segment, Lidl is the most important supermarket. While Albert Heijn is the favorite among the less price-sensitive. Lidl
once started as a discounter, but in recent years it has increasingly grown into a supermarket with good products and service, without frills and at a low price. Despite its modest market share, Lidl is pakistan phone data the supermarket with the fastest growing market share. Lidl is gradually becoming more of a threat to the large supermarkets. While Lidl was previously mainly used as a secondary supermarket, nowadays Lidl also functions perfectly as a primary supermarket.
Not only in terms of market share, but also in the CCDNA research, Lidl is one of the fastest climbers when it comes to customer satisfaction. In 2012 and 2013, Lidl won the CCDNA award for most customer-friendly supermarket. But what makes Lidl so successful? Lidl distinguishes itself from other supermarkets in particular on trust, reliable products, the price-quality ratio and on products and services that are designed from the perspective of the customer and match their situation/needs. Lidl has succeeded in offering the right products at a good price.
Make a clear choice between service and price
There is a clear division in consumers: consumers who choose price and consumers who choose service. This division may become even greater in the future. More than a third of consumers indicate that they are prepared to pay more for good service. Companies would therefore do well to make a choice: differentiate yourself on price or differentiate yourself on service. The group of price-oriented consumers is growing and this is also caused by the fact that providers are less successful in distinguishing themselves from each other. Differentiating yourself on service is easier said than done. Only when you really succeed in offering excellent service will customers be willing to pay more for it. Therefore, make it clear to the customer what your added value is and why the higher price is justified.
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