Some brands are changing their prices on a weekly basis, responding dynamically to inflation. 8 out of 10 companies plan to raise prices due to inflation. And since almost 90% of shoppers will pay more for a product from a brand they’ve always bought from, companies are investing in more reliable supply chains and better customer service.
Other brands are doing the opposite to stand out from the competition: they’re opting to freeze prices . American clothing brand Old Navy froze prices on its back-to-school products to help ease the costs of back-to-school shopping, while British cosmetics company Boots has decided not to raise prices on 1,500 of its own-brand products in response to customer concerns and in a bid to appeal to new customers.
It is still cheaper to increase sales by converting existing customers than list of armenia cell phone numbers to acquire new ones. One way is to reward loyal brand customers by offering them personalized discounts to encourage them to increase their shopping cart.
Order now, pay later promotions are another way to combat inflation. Monetize gift cards and other forms of payment. GapCash allows customers to use coupons only during specific time frames during the day. Adapting a similar model is an easy way to meet customer expectations and increase profits.
Subscription or automatic purchase options for a product are becoming increasingly popular, especially in the face of economic instability. In this way, companies are offering their customers better shopping conditions. This is the case, for example, for companies selling pet food.
#3.Marketing
Brands are tackling marketing challenges by teaming up with other companies
Market instability is forcing consumers to look for alternatives and try new brands and products. During the pandemic, 3 out of 4 consumers decided to try a new brand, product or service. However, when restrictions were eased and borders opened, 41% of shoppers broke away from brand loyalty to look for new options.
In this case, the challenge is to convert potential customers at an already high cost of acquiring them . In addition, brands are facing increasingly stringent regulations related to privacy and third-party access to data. In this situation, brands are turning to collaboration.
Collaborations between non-competing brands allow for the creation of products or experiences that increase their exposure to potential audiences. In addition, there are benefits to working with influencers, whose activities have gained momentum and momentum since the lockdown. When consumers were unable to test products themselves, they counted on the opinions of leaders (e.g. live broadcasts of package unboxings or usage reviews). 7 out of 10 brands declare that influencers will become even more important in the company's development strategy.
How to build cooperation with other brands?
The buzz around new “collabs” is generating excitement among regulars . New Balance has used influencer collaborations to completely transform its image, from dad shoes to coveted footwear for the creative class. New Balance has partnered with luxury brand Casablanca and Japanese brand WTAPS, a move that could help it reach $7 billion in sales by 2023.
One third of consumers trust the opinions of influencers . It is even more important than recommendations from friends and family. That is why the reviews, photos and videos they post on social media are so important. They are three times more authentic than content presented by the brand. Customers also like to be noticed by their favorite company, so they are willing to post content on their profiles, especially if they want to become part of the brand's community. Such content is up to six times more authentic than the content shared by a typical influencer. After all, 30-40% of adult consumers under the age of 35 consider themselves content creators in the online space.
Experience-based, customer-centric loyalty programs aren’t the norm yet, but they’re likely to be in the next few years. It’s worth noting that 6 out of 10 brands already have a loyalty program or are planning to introduce one soon. Alex Danko, Director of Blockchain and Systems Thinking at Shopify, emphasizes that: “having the option to reward customers increases loyalty and allows you to reach new customers.”
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#4. Social commerce
Social media trading is becoming more interactive
E-commerce is expected to grow at a slower pace than during the pandemic, but it still accounts for a larger share of total retail sales. As many as 9 out of 10 people buy from brands they follow on social media. According to the results of a global survey conducted for this report, social media strategies that support marketing are expected to contribute to promotion, as well as customer acquisition and retention.
How to get customers' attention on social media?
#1. Talk to your audience in real time.
More than half of shoppers say it’s very important to be able to easily contact customer service through their preferred communication channel . A billion consumers connect with brands on WhatsApp, Messenger, and Instagram to ask questions or comment on stories. In Q2 2022, WhatsApp Business became one of the top 10 most downloaded apps on phones. Businesses are turning to chatbots to keep up with customer needs and be available 24/7, especially when it comes to simple questions that don’t require human intervention.
