How Retailers Can Build Resilience During Recessions
Battling a pandemic-induced recession has been hard for everyone, but it has been especially hard for retailers. Figuring out how to counteract these effects can be challenging. But being creative and thinking specifically about the needs of your customers can help you come out on top.
Be Forward Thinking
Be forward-thinking and innovative. While this principle is definitely something that you want to guide your business at all times, it’s especially important during a recession. Working through a recession can actually offer you multiple positive opportunities to expand your reach by moving into new markets.
According to OrderMetrics, embracing e-commerce is a great step to reach more customers. If you don’t have an online retail website, now could be a great time to get one. If you do, think more specifically about what draws your online customers to your site—consider how you can attract a specific demographic.
Customer loyalty is crucial for success especially in a recession. According to Podium, repeat customers are the foundation of a successful retail business. As you’re trying to build customer loyalty during a time when customers are less likely to spend money, think about expanding your approach in a variety of ways.
For example, consider offering customers different payment plans. If customers have the option to pay for items over time, they may feel better about purchasing. Additionally, consider increasing the perks that you give customers for coming back again.
Rethink Some of Your Prices
When it comes to lasting through a recession, there are a lot of creative things you can do to counteract the effect of having less people come to your store. According to Economics Help, rethinking some of your prices can help you provide better deals for customers. This can make them more willing to buy. But while making lower prices will likely draw more customers, there are limits.
In order to make sure that you don’t lose too much net income, consider dropping the prices of different seasonal apparel but increasing the price of stable items that consistently draw buyers. Approaching segmentation this way can help your business come out more or less even.
While following the suggestions in this article won’t necessarily solve all your recession-related problems, they can help you get a good start. As you go forward, think carefully about your target demographic and what might specifically hold them back from buying. Then, do your best to address their needs.
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