Support your customers in a financial crisis and reap the rewards of loyalty

Consumers feel pressured by high inflation and the rising cost of living, as the changes they are forced to make to their buying habits are hitting businesses hard. Entrepreneurs too are feeling the pressure of rising business costs while trying to find ways to help their customers through the tough times and retain their loyalty long after the cost of living crisis is over. /p>

Research by consumer intelligence firm QuMind found that 49% of customers in the UK would like to see prices frozen on unbranded products, 46% would like more loyalty rewards to make items more affordable and 41% would benefit from free shipping. or collection services.

Mark Ursell, CEO of QuMind, says, “Entrepreneurs must remain nimble in responding to changing consumer behavior. However, decisions must be based on real customer insights rather than gut feelings. Not only does guesswork risk missing out on business opportunities, entrepreneurs could also find themselves strapped for money by investing in new initiatives that don't reflect the current needs of their customers."

Some companies promise to help their customers by not passing on price increases. When Rock Balboa launched his vitamin and nutrition company, Rock's Discount Vitamins-N-More, 16 years ago, he pledged to keep his prices lower than any competitor and to match prices if anyone found a lower price. This strategy continues today, as explained by the company's Vice President of Organizational Development, Richard Trevino.

“With the economic disruption and volatility of the past few years, material and product costs have skyrocketed, driving many supplement companies out of business,” he says. “However, Rock has refused to pass this cost on to our customers because what we sell to them is essential. We reassessed our finances around our commitment to our employees and customers; we did not raise prices and renegotiated with our suppliers to keep our costs as low as possible. We're weathering the storm."

Luxury slipper retailer Shaffay has slashed prices, aware that with the cost of living crisis, customers will struggle to heat their homes and will need slippers to keep their feet warm during the winter months. coming months.

Founder Anna Elshafei says, "We know that sales of products like lipstick tend to increase during economic downturns because people want to be able to treat themselves affordably when times are tougher. A new pair of Shaffay slippers is a treat. They aren't cheap, but by cutting prices, we're making them an affordable luxury for more people."

With the slipper season barely underway, the recovery in sales has yet to materialize for the new brand. However, Elshafei believes that supporting customers through difficult times is key to retaining future loyalty. She says, "We view our customers, our 'Slipper Souls', as our community, and if our customers know we support them, then they will support us."

Other companies have focused on easing the pressure of meeting bill payment deadlines for people struggling with the skyrocketing cost of living. Billing and payment company Bluechain has developed a digital payment solution using Request to Pay technology to empower customers.

UK chief executive Tim Annis says: “They can choose when payments should recur, allowing them to issue bills on days that suit their financial needs, such as aligning with payday or splitting payments into smaller, more manageable amounts, for example, weekly, and raising queries directly in the invoice. »

This puts the control in the hands of the customer while providing real-time information to the company sending the invoice and eliminating the billing black hole. "It brings certainty to invoicing and payment on both sides, which turns the customer ex...