In today’s high inflation environment, customers are more actively searching for ways to squeeze more value out of the goods and services they purchase. What are some of the things you are doing to create more value for your customers? When consumers become stretched in their time and money, they tend to seek out ways to create savings in both. As a business owner, there are ways that you can become the superhero for your customers by providing them the relief that they seek.
It’s important to consistently remind yourself that your business exists in order to solve a pain point for a particular niche group of consumers. One of the ways that a business can create more value for their customers is to offer ancillary benefits like discounts and special rewards for their loyalty to your business. Offering something to your customers for being loyal to your business creates a bond that helps improve your profitability because of lower customer acquisition costs (CAC) and a longer customer lifetime value (CLTV). Happy customers are highly likely to tell others about your business and will significantly lower your customer acquisition costs.
Creating value could be doing things like offering a special discount for customers who make a certain dollar amount of purchases over a set period of time. It could be free shipping for a certain dollar amount with your business. It could be offering a referral rewards discount given to customers for referring your business to their family and friends. Value is intrinsic and can be measured and perceived in different ways. What is considered value for one person might not be considered value for another. During difficult economic times is typically when consumers tend to seek out more value for their dollars. Being a business that offers a great customer experience while also providing a financial incentive to continue to buy from your business is what consumers seek out more in inflationary and economy recession periods.
So as a small business owner, what tools are you using that allow you to offer extra value for your customers? When difficult economic times exist and persist, consumers tend to reduce their discretionary spending or start to rely more on the businesses they regularly patronize offer them extra discounts and savings in order to help soften the blow of their reduced purchasing power. Even though it might affect short term profitability, offering a little extra discount or service to your customers goes a long way in keeping them buying from your business, improving your long term profitability and keeping you in business.
Marketing studies and surveys show that:
- 90% of consumers use at least one form of coupon during a transaction.
- The value of digital coupons is estimated to increase two-fold from 2018 to 2022.
- By 2025, more than half of consumers will be using digital coupons.
- By 2022, 80% of coupon redemption will be done via mobile phones.
- Coupon trends show that Millennials and younger generations make up the majority of both paper and paperless coupons or discounts users.
If your businesses does not have a customer referral program, now is the time to consider and implement one that can help grow your business even during difficult economic times. Think about your customer base, the generation types that shop your business and their use of technology (e.g. Baby Boomers, Gen X, Y (Millennials) and Z). Consumers spend a lot of time on their mobile devices and it is important to be where your customers are.
Dealsby is a cloud and app-based referral marketing and customer engagement solution that helps small businesses create brand awareness and brand exposure opportunities for their business. Dealsby helps connect small businesses to their communities, one referral at a time. Dealsby also helps Consumers save time and money searching for great local small businesses that offer exceptional customer experiences. Be sure to checkout Dealsby today!
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