What strategies can I implement to add value to my customers?
South Africa’s tough economic climate, coupled with the significant increases in the cost of essential items, mean that consumers have less money for discretionary spending.
This directly affects small businesses such as restaurants and retail stores, creating a tough environment for trading. Under these circumstances business owners have to adapt – and fast.
However despite this environment, certain brands are still reporting significant growth – and this is largely a testament to the implementation of strategies focused are increased value and innovation.
Value for money
Providing something that offers a higher perceived ‘value-for-money’ –option to your customers, which they perceive as price, quality, and relevance, will result in a higher consumer spend.
For some it could mean rewarding loyalty. Loyal customers don’t necessarily prioritise the cheapest price – but they do demand real value, which comes with the experience that you provide and the benefits that they perceive your business gives them in combination with price.
A cheaper alternative
Value for money does not have to mean cheap. A cheaper alternative is often associated with things like a Chinese import, the ‘no name’ brand, the ‘no frills’ airline or a retail chain that is positioned lower than the premium brand.
In order to be seen as the cheaper alternative, a relative benchmark must be established in order for a comparison to be drawn that highlights the discount. Half price deals and two for one combos are excellent examples of this strategy in action.
Creating something new, that people want, will also generate additional turnover. Innovation is often a case of repositioning, repackaging or remodelling concepts that are already present.
Businesses should focus on implementing innovative, value-for-money offerings during difficult times as it serves to differentiate them from their competition and secure a higher portion of the consumer spend. However, this does require investment in the business and effective marketing, which also requires capital. For many small business owners, getting funding from banks is more difficult than ever before with endless red tape, strict qualifying criteria and the need to provide lots of security.
Fortunately, there are finally some new options available to these business owners who need accessible working capital. One such option is Retail Capital’s business cash advance that is a flexible and convenient funding product that adapts to the clients’ business needs.
No security is required, there are no restrictions on the use of the funds allocated to a business and money is available within 10 days.