The last three years have been a great challenge for all companies. After the pandemic, we now face another enemy for the business sector: inflation. According to a study by Clearpay and Kantar, a 68% of Spanish consumers prefer to control their expenses, save and prevent, and 65% think about it more than before when it comes to making an extra expense. The rising cost of living is affecting all EU countries and inflation has exceeded 9% for the first time in twenty years, breaking an all-time high, so companies of all sizes are taking steps to cut costs . In fact, 47% of Spanish retailers affirm that one of their main challenges is being able to pay the basic expenses of their businessincluding employee wages and rent, according to the study X-ray of retail trade in Spainwhich we have done since Square. However, small and medium-sized companies are the ones that feel the impact of inflation the most, although this does not mean that they cannot do anything in the face of this crisis.
To address this situation, it is important to know the current state of the company, identifying both the strong points and those that need more attention. With this objective, data is a key ally when it comes to knowing exactly which are the main sources of income, where the most are earned and from which clients those earnings come. A detailed report of losses, to keep track of business performance and adapt sales strategy when necessary, it can also help to better support less profitable business areas.
Designing a plan that helps not only acquire new customers but also helps strengthen relationships with existing customers is critical in times of economic stress. Offer reasons for them to stay and continue buying the products or services, for example, through loyalty programs, may be an option. In 2022, only 32.4% of Spanish retailers used or planned to implement automation technology to develop incentive and customer loyalty programs, according to the data available to us at SquareTherefore, many businesses still have the opportunity to explore this path to minimize the effects of inflation.
To avoid raising prices and risking customers opting for a cheaper option, refocusing the company’s marketing strategy is also an effective strategy. The objective of the change would be to reposition the product and add more value to it, so that customers perceive it differently. He email marketing It is a powerful tool that can help publicize products, express brand personality in a more direct way, and build lasting relationships with potential customers. With dedicated software, personalized emails can be configured to adapt them to each client and measure the results of each strategy.
Also, explore new sources of income it is a solution that can help to get out in times of crisis. They can be complementary, such as a new service package or a new product, which can be sold omnichannel, but you can also propose something completely different to have a passive source of income.