Kavan Choksi / カヴァン・チョクシ Discusses Tips Retailers

Inflation is a huge challenge for individuals and businesses alike. As prices go up and purchasing power goes down, consumer buying behaviour is likely to change. As Kavan Choksi says, it becomes imperative for retailers to have effective strategies in place to maintain their sales and retain their customers even in times of inflation. After all, consumers are the first to suffer from inflation. They have to bear the increasing prices of several products and services, and hence often have no choice but to change their spending habits.

Kavan Choksi / カヴァン・チョクシ lists tips retailers may follow to attract and retain customers during inflation

During inflation, customers often choose to reduce their non-essential spending due to price increases. They prioritize spending most of their income on meeting the rising prices of basic necessities, like transport, electricity, rent and food. Customers often pay more attention to prices than usual during inflation, and compare offers to find similar products at a lower cost. They may opt for generic brands, as such items are usually less expensive than popular brands. Basically, customers buy less and become more demanding in terms of value for money, during inflation. To attract and retain customers in such a situation, retailers need to follow the tips discussed above:

Understand the customers: Understanding the customers is critical to meeting their needs. There are several ways to achieve this goal, including the analysis of customer data, purchase history, surveys or feedback forms. This would help retailers get a better idea of how loyal the customers are to their store, how they spend their money and their state of mind. Knowing the customers well would help retailers to effectively identify how they may respond to inflation, and adjust their strategies as per its accordance. Knowledge of customer preferences, expectations and needs is vital to retaining them in times of inflation.

Provide discounts and freebies: Retailers must try their best to be there for their customers and provide support during inflation. This can be done by assisting them in saving money. Discounts and freebies can especially boost customer loyalty and sales. However, in case a retailer is unable to offer discounts, the best solution is to do fewer but effective promotions. This can be done by creating personalized and targeted offers on the basis of customer behaviours.

Have competitive prices: During inflation, most customers become price-conscious. Therefore, retailers must try to keep prices as low as possible. Prior to increasing the price of any product, they must explore options and adapt their approach to maintain competitive pricing. To avoid making customers weary with a price increase, it might be a good idea to implement price tiers. This will help reach several subgroups of customers and maximize the overall reach of the business.

Kavan Choksi mentions that to differentiate their business from competitors. retailers must offer added value. This can involve certain additional benefits. Like a memorable shopping experience, hassle-free customer service, as well as expert advice or exclusive benefits for new customers.