UK business growth has been at an all-time low since June 2023. Moreover, the fear of looming recession amid surprise price hike, and customer spending reveal signs of faltering. According to the Guardian’s report, “Economists expect a further drop in customer’s spending with increased borrowings and low-income possibilities.”
Apart from that, the Bank of England’s new interest rate hike from 0.5% to 5% reveals the rest story. It is stubbornly high for the people leading lifestyles below average.
This shrinking customer confidence about the prevailing economic situation reduces the demand. Additionally, the increased cost of living makes customers stick to essentials and reduces unnecessary expenses.
However, businesses can still capitalise throughout the peak by providing customers with what they want. You must consider the present customer mindset towards spending and optimise your services.
You need to re-think from the pandemic’s business perspective. Prioritise something critical for a customer. It could be anything like low prices on certain products. Identify how to make space for your products within the customer’s shrinking budget and needs.
The blog lists expert ways to re-track the business growth and dominate the scale.
5 ways to keep sales high despite low customer spendings
The recent economic contraction shouldn’t concern you if you capitalise on the right thing. A few sales techniques may help despite the customer’s low spending curve.
1) Do not wait too much to release discounts
You may not be aware, but your customers are already searching for discounts. They explore places online for the best discount and value for the product. If you miss your presence here, your customers may never return.
Thus, wait no more and launch your strategy to capture the most profits this Christmas and New Year. The clock is ticking. Analyse and work on the best aspects that customers love about your products. You can capitalise on these as your first move to get the attention of the crowd.
With a renewed focus on making the best bargains, many may drain their budget before Black Friday sales. Thus, you must not wait until Black Friday sales. Instead, get the best strategy and improve sales now!
2) Do not compromise with the value
According to a UK&I Retail Lead, “As consumers get more cautious about what they buy or spend their money on, brands need to position their offer thoughtfully. Here, one should focus on usefulness rather than negligence.”
Sometimes, people do not question the price if you provide value for their money. It is regardless of the recession or the financial situation they face. Unless it’s critically important, they would never bargain on something that’s valuable and long-lasting.
Thus, by adding more value according to the refreshed behaviour of the customers, you can make a mark. It is because you present yourselves as the obvious choice in the pool of others offering things at an unrealistic price unnecessarily.
3) Drive footfalls with renewed in-store experience
The ability to create irreplaceable in-store experiences stands unmatched to anything. Although it may not beat the comfort of online shopping, it is worth the effort.
According to an expert, “People still want to experience the in-store shopping with friends and family this Christmas.” You can nail this opportunity by:
- Providing demos of the product customers like
- Feature the most demanding products on the entrance
- Give your customers rewards in return for shopping
- Provide free tickets to the most talked about event
- Invite influencers and experts for promotion and sales
4) Prioritise customer’s pain points
Optimising business and product strategy without knowing your customer’s needs is a waste. Instead, analyse what your customers want. Analyse:
- What are the customer’s existing inhibitions?
- What’s making them switch the company?
- Is price the primary concern? How can you combat that?
- What do they want but do not get with any provider?
Address concerns like these to revise your business operation and customer policies. It would help you sell the product to the customer. Stay transparent about the services.
Additionally, if you deal with the customer with a renewed mindset and offerings, it would be relieving for the customers. They like brands and businesses that care about their needs and struggles.
Moreover, it also helps you personalise the services. They definitely stick by your side for your next purchase.
5) Provide services with different price frames
Have you conducted a feedback analysis of the business anytime soon?
Well, you must have.
It helps one analyse the best ways to improve the services and the sales.
For example, if you receive the most feedback about insufficient varieties or too costly items, you would like to improve that.
You can do that by launching a different range of products your customers love. But with a catch- offer these products with different price ranges. Certain businesses can sell a product in different sizes and prices according to the customer’s budget frame. If your competitors lack the strategy, you can surely make it there.
Precisely, every customer wants to spend less and get more. That’s the fact. Thus, you can bank upon this by helping customers with the right product for their needs and budget.
6) Offer base price Loyalty Programs
It is one of the best ways to grab customers’s sight. Analyse the loyalty programs for your regular customers. Under this, you can choose to provide your customers the flexibility to buy a product at the same price for 5 years. Isn’t that great?
Although this may lower your upfront revenue, it helps you get a regular customer for the product. Long-term relationship with customers profits you at every business stage. Moreover, it increases trust and loyalty within the brand.
However, if you have low cash availability, you can take the below steps:
- How to launch loyalty programs on a low budget?
- Understand your customers
- Choose a royalty program that interests them
- Analyse their buying or purchasing power
- What they would like to save on?
If you need more cash flexibility to launch programs successfully as a startup, a loan for short-term business may help. With this, you can capitalise on the opportunity. Bridge the rest of the expense and market the program. The more customers you get with it, the more profitable it will be.
These are some expert ways to upkeep the business sales despite low spending. A customer requires a brand to know and understand their requirements. Once you know the pain point, you can sell effortlessly despite the low economy or the finances. However, analyse your cash flexibility to capitalise on the same.
Emma Anderson is a highly accomplished Editor-in-Chief at 24cashfinances, renowned for her exceptional expertise in the finance industry. Holding degrees in Finance and Marketing, Emma has developed a deep understanding of the financial landscape, particularly when it comes to loans and personal finance.
Emma’s professional journey began as a financial analyst, where she gained hands-on experience in evaluating market trends and analysing investment opportunities. Emma’s enthusiasm for writing and her goal to educate and give individuals a voice motivated her to move into financial journalism. Her work has been published in popular magazines and she has produced thought-provoking pieces on various financial topics.