Customers’ priorities are changing…fast. This means that businesses need to identify new and different strategies that can help it navigate their customers’ shifting priorities.
Global research is indicating various trends as to how customers are likely to be shifting their priorities, I will list some of them below:-
- More and more customers are interested on building healthy habits in their lifestyle, across all industries. This means that finding ways to highlight how your product or company can help customers in this healthy lifestyle is becoming increasingly important.
- As inflation bites in, customers are becoming more price sensitive. Research is showing that customers are more likely to reduce discretionary spending as inflation keeps rising and everyone is expecting an economic downturn. This means clients would likely decide to save more and spend less and possible use the savings to pay any debt quicker due to rising interest rates. This means that attracting customers by offering promotions, discounts and possible flexible payment options will become more important.
- Focus on Value: Despite heightened price sensitivity, today’s consumers aren’t necessarily looking for cheap options. To the contrary, research indicates that customers are willing to spend money on products and brands that offer real value. So what can businesses do to demonstrate their worth to an increasingly value-conscious customer base? Investing in quality is always important, but businesses need to find ways to add additional value to their existing products and to communicate that value to customers.
- Customers are more open to change. As inflation bites in, customers are indicating to be more open to change brands. This means that there is an opportunity out there to attract new customers if you offer the right value proposition.
- Foster consumer loyalty: The flip side of people being more open to trying your brand or products is that they might also be more open to abandoning your brand and switching to a competitor’s. Even if they’re not particularly unhappy with your company, they would be more open if they perceive that someone else if potentially offering them better value. As such, while fostering strong relationships with your loyal customers is always important, this is now more critical in the current turbulent environment. Rewards programs or schemes can be an effective strategy to boost customer loyalty, as would be financially incentivising customers to return. You can also use such loyalty schemes not just to offer discounts but also including experiences such as cinema tickets.
As customers are changing and shifting their priorities, businesses need to change or adapt their business models to respond effectively to the changes in customer priorities. In a recent survey done with 100+ different family businesses we have asked family businesses to rank the importance they give to various priorities including that of “adapting or changing their business model”. During the event to be held on the 1st February, 2023 at 9am, we shall be indicating the priority family businesses gave to “adapting or changing their business model” and if such a priority was the same for every type of family business.
Click HERE to register for this event.