If inflation wasn’t enough, fuel and energy shortages are negatively impacting consumer finances too. This has led consumers to be more cost-sensitive with regard to basic necessities such as food, utilities, and transport. The cost of living is squeezing the man in the street and this inevitably has a knock-on impact on consumer spending and businesses across a range of industries.
The majority of consumers are making the conscious decision to reduce their spending costs by eliminating luxury purchases like entertainment, travel, and non-essential items. Thus, resulting in the retail, travel, and hospitality industries being impacted negatively.
While consumers are price-conscious, data reveals that there is still hope for businesses that keep up-to-date with consumer trends and demands. The latest consumer trends reveal that the perception of cost-effectiveness can be just as important for brands as price. Consumers prefer to buy from brands they believe offer longevity and value for money as opposed to buying products or services based on brand names and reputation. Brand alternatives that offer greater perceived value are attracting consumers regardless of whether the product is actually cheaper than others of its kind. This may explain why more consumers are buying basic household goods at discount stores over premium range products or investing their hard-earned money in banks that have lower fees despite their reputation. The same can be said about healthcare and insurance industries as consumers are switching to providers that are luring consumers with cheaper and flexible contracts that often come with ‘freebies’ to create the perception of greater value for money.
The process that consumers take when deciding to invest in a business's products or services is becoming more of a functional experience where consumers are hunting for the best deals, best value for money, and most importantly the most reliable brands. It is clear to see how the cost of living is changing consumer trends once again, but with the help of your trusted advisors in customer communication management, you can survive this change!
The solution can be found by delivering exceptional personalised customer experiences (CX) through a consistent and agile customer communication management strategy. Customer experience is immensely important as consumers are attracted to businesses who show a genuine effort to go the extra mile to meet their needs. By having a concise strategy that implements effective customer experiences you will ensure increased customer loyalty as well as customer retention. In turn, higher customer loyalty inevitably leads to purchases and return on investment. CX has become a major differentiator for customers and businesses can use this to their advantage to enable their business to remain top of mind and ensure that their products and services do not end up on the chopping board.
As the cost of everything from food to fuel rises, consumers are leaning towards businesses that have value at their core. The market is in a state of constant change and the same can be said about the way your customers want to engage with your business. Make sure that you meet the demands of your customers by chatting to our team of trusted advisors who can add great value to your customers via cost and time savings, whilst creating more meaningful and personalised communications that meet customer expectations. Our solutions for customer communication management will ensure more adaptive, personalised, and relevant two-way conversations and exceptional end-customer experiences.
Contact your trusted advisors in customer communication management to ensure that your business stays on top whilst consumers are battling the effects of an increased cost of living.