Yesterday, I was on the phone to my Big 4 Bank, with whom I have various tie-ins - loans, accounts, credit cards, etc. I had recently been doing internet research on a loan I have and discovered I could save almost 1% by moving it to a smaller finance provider. However, not wanting to go through the hassle of the paperwork required to change, I thought I'd call my long-term existing Big 4 provider and see if they could match the alternative rate.

I want to reiterate, I knew it would be a hassle to change - AND DIDN'T WANT TO. But the money I could save by going elsewhere was too much to ignore. (By the way, does this sound familiar to anyone in the professions?)

So when I inquired what they could do for me, after stating I didn't want to move and actually told them what the other party were offering, they gave me a small discount. Just because I asked. This frankly was their first mistake. I thought, why were they 'overcharging' me in the first place? Their second mistake was the small discount was NOWHERE near the alternative offer. I thought it might be for a variety of reasons, so I asked 'Beyond the price, why should I stay with you?' That's when they made third and biggest mistake of all.

They TOLD ME the reasons I should stay with them - their ATM network, their branch network, the opportunity to talk with a local branch manager.

See the problem?

They DIDN'T ASK ME what was important to me. They launched into a handful of reasons they thought were their best 'sales' options, without deeper knowledge of my alternative, or my preferences in dealing with the bank. They didn't ask me if I used ATMs or branches, or needed a bank manager. If they had asked, they would have found out these were being offered by the competitor too. (Ironically, the alternative provider offers free use of the ATM network of the Big 4 Bank I was talking to!).

They didn't ask me what they'd have to do to keep my business. They didn't hark back to the mountain of paperwork I thought I might have to plough through and check if this was worth anything to me. They didn't reflect on the 20 years I had been with them and that it might have been easier to stay with them for my future financial needs.

NOTHING.

So my lesson here is - BEYOND PRICE, WHY SHOULD A CLIENT STAY? In other words, when a client questions your price and suggests they might have an alternative, expect this, and have a process to handle the inquiry.

That process might look like this:

Prepare for the certainty this will come up by evaluating the reasons a client should choose you, beyond price alone.
In the moment of the inquiry, ASK A FEW QUESTIONS to understand the client's reasoning and the competitor's offer. Then acknowledge their point of view.
Only then can you offer a targeted, reasoned response to the client. If you need time to work it through, ask for it and suggest a face to face meeting to talk it through before they make a final decision. PUT IN THE EFFORT.
Finally, CONFIRM that you have responded adequately and ask if you have earned the right to their continued business.

When you're in a tough, price-sensitive market, you're always going to have to deal with the price question. But if you don't have anything beyond price to offer, you only make it easier for clients to leave you.

[I'm moving my business...]