The past few years have been intense. Between the pandemic, the Ukraine-Russian war and a looming recession, the cost of living is on the incline. As a result of these factors, customers are cutting back and re-thinking their cost of living as much as possible. So how can your business communicate with these price-conscious customers and how can you add value to an already complicated economy?
Communicate with empathy
While this may go without saying, never forget that on the other end of any communication strategy, is a person. Put yourself in their shoes and try to authentically understand their needs and challenges. Most importantly, recognise that this is a real opportunity to get to know your k customer better. Remember that many consumers are struggling; unemployment is high and it may actually insult your customer if you insist they buy something they want but can’t afford. So consider tweaking your messaging to empathise with the struggle, and explain how, in spite of these tough times, your product will add real value to their lives. Find creative ways to prove to your customer why your product is worth their time or investment.
Focus on value rather than price
Value is a far better focus than price. Especially when it comes to talking to price-conscious consumers. Keep in mind that products have value and it’s up to you to educate your customer on what value you are offering. Value will prove to your customer that you are somehow making their lives easier in the long run and so an investment will be worthwhile.
Test discounts to tap new markets
In a tough economy, discounts can really boost business. The best strategy though is to test discounts and coupons in order to see what works best. Sometimes discounts help you tap into a new customer base and the customers will appreciate that you are taking their needs into consideration when they don't have as much to spend.
On the flip side of this, while understanding your customer’s budget is important, it's not always necessary to give them the cheapest option. Often you can provide a mid-range option and if it works for them then they may return when they can afford more. Alternatively, you may have an option on your menu of services that fits their budget constraints right now and then you can tell your customer how much they are going to save by working with you.
Ensure customers don’t take advantage
Remember that any discounts or special offers need to make economic sense for your business. Never offer a deal that you can’t realistically afford. In cases like these, rather politely let your customer know that it doesn’t work for you. You are in charge of your business and it is your responsibility to make sound, long-term decisions.
The bottom line
There are many different types of customers out there, and price-sensitive ones need to be considered too. Some are willing to pay more for value, while others will take a view that they can live without your product regardless. Your work is to appeal to the customer’s needs and show them (in an authentic way) how your business will add value to their lives and why they should invest in your product or service today.