In these increasingly challenging financial times, it will be hard for companies to not offer some sort of incentive or discount option and still maintain customer loyalty. More and more loyal customers are leaving their favorite brands in search of a better deal, leaving businesses scrambling to find ways to keep them.
Here are a few ideas to consider when determining your loyalty strategy in the current inflated marketplace:
Implement a Rewards Program. Almost three-quarters of Americans say that customer rewards programs are important when it comes to giving a company repeat business, with almost half of millennials saying rewards are important to them in exchange for customer loyalty. (Achieving Customer Amazement, Shep Hyken, 2021) Discounted prices and offers of cashback are almost always preferred, but certain services like expedited shipping or early access can be enticing to customers as well. A quick survey to understand which perks are most exciting to your customers would help to develop a more successful rewards program.
Deepen your personalization. Brands should work to identify and then customize their pricing and marketing strategy to each specific group of consumers. Sending deeper discounts or offering smaller, cheaper package sizes to more highly price-conscious consumers instead of making mass changes may help to offset rising costs.
Launch a ‘new’ product. Consumers are willing to spend more on products that deliver a greater value. Consider launching limited edition or premium offerings to reduce the negative impact of a higher price. Just be sure that you are also providing premium quality and performance at that premium price.
Keep a close eye on your consumers. Stay on top of customer behavior and satisfaction to identify shifts in loyalty before they happen. Monitor product review pages, social media, and other forum discussions - or better yet, conduct regular customer loyalty and satisfaction research - to keep a pulse on industry-level behavior and trends.
Communicate and Empathize. Show your customers that you care and are working hard to provide them with the best service and quality possible during these challenging times. Make sure your communication strategy is sensitive, upbeat, and honest. Testing your messaging before launching a larger campaign can be a good idea to decrease the chance of negative feelings.
Be Flexible. Finally, today’s consumers can be fickle and change behavior at the drop of a hat. Brands should be prepared for any and all disruptions to their business and be able to respond quickly to their customers’ changing needs.
We recommend that you check in with your customers and clients to understand their specific pain points, behaviors, and expectations as they may have changed recently with the increasing inflation rates and stretched personal finances. Adjusting your retention and communication strategies now may help you keep your customers loyal during these times of fickle customer behavior. Vennli can help you quickly identify real-time, voice-of-the-customer insights to improve customer satisfaction and loyalty, and ultimately maintain and grow your business.