A new competitor enters the market offering similar products at lower prices. How would you retain existing customers in this scenario?
- Lower the prices of your products to match the competitor's
- Highlight the unique features and benefits of your products
- Offer loyalty rewards or discounts to existing customers
- Provide exceptional customer service to differentiate from the competitor
Option 2 is correct because it focuses on emphasizing the unique value proposition of your products. Lowering prices might lead to a price war and lower profitability, while offering discounts may only provide short-term retention. Exceptional customer service helps build loyalty and trust, making it harder for customers to switch to the competitor solely based on price.
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