Coupled with a global pandemic that has changed consumer spending habits, supply chains, and the workforce, massive inflation has been steadily creeping in as well. In the past 12 months since February 2022, Prices increased by 7.5%, the highest growth rate since 1982. With inflation resulting in an increase in the cost of inputs, companies are passing on higher prices to their customers. Large companies might be able to delay increased prices through margin reductions and efficiencies. However, the inflationary pressures today are forcing everyone to adjust their prices much to the dismay of disgruntled customers.
Brands cannot simply rely on customer loyalty as a reason to increase prices and keep things as is. The rise in costs resulting from inflation passed down to the consumers has a negative impact on the consumers’ ability to buy. During times such as these when companies are forced to increase the prices of their products and services, they should be innovative to ensure they retain their customers by putting them first. Businesses can take some of the actions below to build and retain customer loyalty.
Improving Efficiencies
One of the best ways a company can address inflation is by improving efficiencies. A business can increase its efficiency, reducing overhead but still offer the same product to the consumers without increasing the prices. They can also use this opportunity to promote transparency. Customers are reported to be more price-conscious and more likely to be value seekers, making up 71% of shoppers versus 19% who are quality seekers.
Digital Workforce
Technology has revolutionized the world of business, particularly with AI. Robotic process automation (RPA) software, chatbots, and other tech innovations have become more common. Companies can assemble these tools into digital workforces, increasing cost effectiveness. Digital workforce platforms have improved AI tech, which makes sure that a company can continue to offer customer service and still maintain a high-quality customer experience.
Collaborations and Promotions
More and more companies are looking for ways to involve their customers in saving money. Some of the most used ways include affiliate opportunities and referral programs. This offers the customer an opportunity to save money through investing their resources and time into something they can endorse personally. These approaches can be used to cut on marketing expenses.
With inflation continuing to be a threat, businesses have to do their best in ensuring they do not alienate their customers. If a business can find innovative ways to share the burden, they can show that they value their relationship with their customers. Inflation is inevitable today, but effort must be made to ensure that everyone will make it out of this.
