The US economy is facing record inflation rates, and this has impacted nearly every aspect of consumer experiences and expectations.
Usually, inflation reduces consumers’ buying power, leading to fewer purchases and affecting businesses all around, especially for companies selling non-essential products or services. During times like this, it’s essential for businesses to build and focus on a loyal customer base.
With less discretionary spending available, businesses need to show customers why they deserve a small portion of the customers’ share of wallet. Moreover, depending on the products being sold, a customers’ buying behavior during inflation can change dramatically. From increasing purchases for products that are perhaps better available in bulk, to stopping certain purchases completely, consumer buying patterns will transform.
In order to ensure that you’re truly connecting with customers and continuing to deliver relevant products and services, you need to first understand how your product is viewed, and make it more accessible.
But, how can you create an inflation-proof product that your customers want? The simple answer is customer experience (CX).
Now, let’s dive into the details.
What are the benefits of customer experience?
Customer experience refers to the sum of all experiences a customer has with your business – from the very first advertisement to the very last follow-up and everything in between.
A customer experience strategy is simply the practice of keeping customers at the heart of business decisions and delivering experiences that hold value.
When you focus on customer experience, you will notice a significant impact on several tangible and intangible customer experience factors. Here are just some of the benefits:
- Improved customer satisfaction
- Higher customer acquisition
- Increased customer retention / lower customer churn
- Better market value
- Enhanced online reputation
How can you improve customer loyalty during inflation?
With the rising cost of everything, customers are paying the price – and increasing their expectations as well. As they pay more, nearly 68% customers also expect immediate improvements in CX.
While transforming your CX strategy overnight isn’t an easy task, here are a few things to keep in mind to ensure you deliver on customer expectations.
- Provide additional value-added services
Offer additional services that can add value to your product without significantly increasing your costs. This helps customers feel like they’re getting more for less, easing their buying decisions.
A few simple things to do could be extending warranty periods, offering discounted services following the first purchase, or even adding complementary accessories so that customers can get a bang for their buck – all this without significantly increasing your cost as the product/service provider! - Implement price segmentation
Every product is not ideal for every customer. This is even more pertinent with inflation.
So, segment your market and look to understand your diverse audiences. Once you realize what their needs and expectations are, you can work on creating product offerings at different price points that are perfectly suited for them!
This is especially useful for SaaS businesses that have a modular product structure, as it helps them tailor solutions to different clients at nominal charges. - Create loyalty programs and discounts
Increase customer retention with loyalty programs and genuine discounts. This is ideal for B2C businesses where the price points aren’t too high.
With loyalty programs in place, you can tailor rewards to customer preferences and ensure repeat customers get great discounts and offers. When customers know they’re working towards a reward, they’re more likely to choose your brand or product over those provided by competitors. - Try product bundling
Increase the perceived value of your offerings by combining several products together, giving customers more for less without incurring a significant expense.
You can do this by offering complementary services or products that pair well with the purchase. - Offer flexible payment plans
One of the biggest concerns during times of inflation is having a lesser discretionary budget. You can help your customers overcome this by offering flexible payments plans such as Buy Now Pay Later, or even easy EMI services. - Listen to customer feedback
Sometimes it’s important to just listen. While all the above ideas are a great way to get started, maybe your customers want something else altogether! By reaching out to your customers and asking them about their preferences, you will be able to better understand (and exceed) their expectations. - Focus on lifetime value
Inflation affects everyone, and pinches consumers the most. As businesses, sometimes you just need to focus on the big picture. Instead of looking at the current profit margins, inflation is a great time to prove your customer-centricity and create loyalty in the long-run. This could mean trimming down your profits and focusing on improving customer lifetime value with retention strategies!
Get started with customer experience!
Short term measures during inflation can transform customer loyalty, even after the economy bounces back!
By doubling down on customer experience, you build trust with your customers. You offer experiences that hold value, and create an accessible environment, empowering customers to shop and do business with your brand.
With the US economy facing record inflation rates, it’s important to ensure that you make your business as inflation-proof as possible. Listen to your customers’ needs and expectations, capture feedback, and create a business strategy that focuses on your target audience.
Sogolytics can help! Our powerful customer experience management platform can help you gather and analyze feedback to unveil key customer insights, helping you make informed decisions that benefit your customers and your business!
