Did you know that you can recession-proof your independent business through better loyalty strategies?
What does the ‘technical recession’ mean for your business? The current economic climate presents independent retailers with the most competitive environment in recent years. Consumers’ spending habits are proving to be more prudent and discount deals and value-driven services are higher on their priority list. However, all’s not lost, says HBR: “Hard times – even a deep recession – can be an opportunity to win the loyalty of more customers.”
Bain & Company offers these tips for retaining your customers and gaining new ones during frugal periods:
- Avoid aggressive discounting because sales from new customers attracted only by lower prices will often decline when prices recover.
- Identify the customers your business can serve better than any competitor can, and find out how likely they are to recommend your products or services to a friend or a colleague based on a recent experience.
- Build trust through follow-up contact. Loyal customers cost less to serve and their referrals to friends can lay the foundation for business growth during a recession.
Maintaining customer loyalty in a downturn is difficult, but not impossible with new strategic thinking.
For more helpful hints, business tips and industry insights, remember to visit the Sureswipe Resources page regularly. Click here and we’ll call you back to discuss ways to elevate your retail business operations and raise your revenue.