• by Dan Roche , September 3, 2013

In today’s economy, people want to obtain the most value for their money: special offers, buy-one-get-one-free sales and websites dedicated to deals and steals abound. I can’t even imagine my inbox without daily emails from Groupon or Living Social. However, even amid all of this cost-conscious activity, companies are still up-charging their clients for premium services. 

Are premium services something your business should be offering to your clients? Will advanced services elevate your product offering and drive additional sales? Most importantly, will premium offerings enhance your customer relationships? 

Here are three things to consider when deciding if premium offerings are advantageous for your customers and your business: 

• Standard vs. Premium – Customers will consider a premium product, service or support offering if they can easily distinguish value between the standard and premium versions. Will choosing premium offer them a higher level of customer support if they have a question or concern? Does the premium product offer your clients more features and functionality to help them better conduct business? The quality of the premium service needs to extend beyond the standard product to provide customers with a more hands-on, personalized customer service. 

• Employee Training – Providing clients with premium products means specialized training for the employees associated with serving these distinct services. The time and cost associated with advanced training of your current employees or on-boarding a new team to support premium options may not be feasible for companies cutting costs. Plus, companies must ensure this additional training doesn’t detract from current customer relationships or you might have a premium offering without a client base to provide the service. 

• Cost – Customers want the world, but that doesn’t mean they will pay for a premium product/service. Put yourself in your client’s shoes. What added element is a “nice to have” versus a “have to have?” Customers will likely seek premium selections if they include more essential functionalities. Is the premium option faster or more convenient? Are the materials of a higher quality? Is it more exclusive? The key is finding the right value proposition for your customers. 

Businesses might think they need a premium product or service to establish themselves in the industry or prove themselves to clients. This definitely isn’t the case. A strong standard offering and exceptional customer service are more than enough to remain competitive in the marketplace. 

Keep in mind that offering one product or a variety of service options shouldn’t alter how the customer relationship is treated. The attention level, courtesy and support should not be reduced because a client chooses standard versus premium options. 

Talk to your clients about their business initiatives and goals before considering a premium product or service. They’ll be more than happy to offer their feedback and tell you what they need, or at least what they want, and if they’re willing to increase their budgets. Then, your business can determine if there will be enough ROI of development and implementation costs. Most importantly, will there be an uptick in customer satisfaction? After all, healthy customer relationships are the most premium product of all.