Penny pinchers. Value-for-money shoppers. Bargain bin hunters.
Call them what you may, thrifty consumers have been around since time immemorial. The recent economic onslaught and accompanying rise in inflation will likely increase this group of discount shoppers. In a cash and job strapped situation, everybody – rich and poor alike – will pay more attention to their wallets.
Against such a backdrop, how should one adapt one’s marketing strategies? Here are some thoughts for consideration:
1. Improve consumer perceptions of your product/service value relative to price.
This could be done by communicating dimensions that convey durability, quality, savings (eg utility bills), warranties or other similar benefits.
2. Match and mix complementary products/services while offering attractive discounts.
This is especially useful when hot selling items are paired with slower movers. The more they buy, the more they can save!
3. Offer discounts but be selective in doing so.
Focus on those that are more likely to be selected by consumers in a slower economy, eg your lower/medium range of products and services rather than premiumly priced items.
4. Provide options for service or product delivery that may sacrifice convenience for price.
For example, customers willing to travel to a warehouse away from the city centre can pick up a product with a cheaper price.
5. Help customers to gain more bang for the buck.
Other than offering your goods or services at a “value” pricing, look into your customer’s processes and see how using your product could reduce their costs.
6. Reward loyal customers even more when the going gets tough.
This can be in the form of a wide range of specials: fire sales, hot deals, exclusive “members only” sales, discounts over discounts, and so on. Which bring me to my last point…
7. Aggressively recruit members when times are hard.
To do so, reduce your cost of membership and make it even more attractive for customers to sign up (for instance, by offering an immediate discount on a product/service that they are already procuring). Use this window of opportunity to build long-term relationships that are win-win both for your customers and your business.