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The power of customer loyalty during economic downturn

The power of customer loyalty during economic downturn
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The power of customer loyalty during economic downturn
Siobhan Stirling - Sharp Minds Communications for Capital Space by Siobhan Stirling - Sharp Minds Communications for Capital Space
Owner/Director - Sharp Minds Communications Ltd

It’s hard to escape news of the country’s current economic climate, with reports of rising interest rates and recession predictions dominating headlines. You’ve probably also noticed the price of your weekly food shop rise or your car become increasingly expensive to fill up. While we can’t predict the future, history has shown the power of loyal customers to help get businesses through economic downturn. So, how can you utilise happy consumers to help see your business through financially uncertain times?   

What do rising inflation rates mean for your business?

Inflation rates are being driven by the sharp increase in food and energy prices, which has largely been triggered by Russia’s invasion of Ukraine. Prices are currently rising at the fastest rate in 40 years , making the items we rely on at home and within our business more expensive to buy compared to this time last year.

Although economic downturn can feel really daunting as a business owner, remember that situations like these have happened before, and businesses have come out the other side – some even stronger.

Key to ensuring your business’s growth during financial uncertainty is by harnessing the relationships you’ve already got with your customers. Here are our top tips for creating a loyal customer base.

Remember who your ideal customer is

It’s important to remember who your product appeals to and stay true to this. Don’t change your brand’s values or heavily discount your product to try and appeal to a different market. Instead, focus on building and strengthening your relationship with your ideal customers.

This isn’t to say that you can’t offer small discounts to your customers. Just remember not to lose sight of your brand in the process.

Engage with your customers

Meaningful engagement with your customers will help build a relationship with them. Over time, this engagement will build loyalty and keep them returning with repeat business. It is far more effective to maximise profits from your existing customers and encourage repeat business than spend money trying to attract new ones.

Let your customer know you care about them

If you’ve noticed your prices rising, it’s likely your customer will be in the same boat. Whether your business is B2B or B2C, most households and businesses are going to have tighter budgets during the current climate. Empathising in your marketing and offering useful tips will go a long way in building a strong rapport.

Community matters

If your budget allows it, now is a great time to do some pro-bono work. This doesn’t have to mean you making a large donation to a chosen charity, it can be as simple as giving your employees one day a year to go and volunteer or placing a food donation box in your office to go to your local foodbank.

Loyalty schemes

Loyalty schemes are a great way to build a happy customer base who keep returning with more business. They’re also brilliant because they enable you to collect customer data which will help you make informed decisions about your business strategy, marketing and products in the future.

Our key to success

At Capital Space, we’re proud to be the home to so many amazing SMEs across the South East of England. One of the keys to our success has been supporting our customers in their business’s development, which has meant that many of our customers have been with us for well over a decade.

If you are worried about inflation, rising costs and how to stay afloat going forward, there is a myriad of support via your accountant, the  FSB , your local Chamber of Commerce or Institute of Directors. 

To find out how Capital Space could benefit your growing business,
call 0800 107 4667 or email info@capitalspace.co.uk