As the global economy struggles through a recession, merchants face immense pressure to maintain sales and keep their businesses afloat. However, with consumers tightening their belts and spending less, it’s becoming harder to turn a profit. Therefore, you need to get creative in order to increase revenue and stay competitive. Here, we explore helpful strategies that you can use to boost sales during a recession and drive growth against the odds.
Evaluate sales performance
The first step in boosting sales during a recession is to look within and evaluate your sales performance. Analyse sales data to identify trends and patterns in consumer behaviour, including
- Which products sell well
- The most effective promotions
- Channels that drive the most sales
- Preferred payment methods of shoppers.
For instance, you might see increased sales after introducing financing options during a recession. By offering payment plans and low-interest rates, your shoppers feel more empowered to purchase high-end or expensive products without spending money upfront. This strategy can help you increase sales, improve customer loyalty and differentiate yourself from competitors.
Adjust your product mix
It's worth adjusting your product mix to appeal to recession-conscious consumers. If possible, focus on products high in demand with a low price point while also offering high-end items for less price-sensitive consumers.
Appealing to a broad audience can be beneficial, especially during a recession. You should also explore adding new products or services that are recession-proof, such as essential goods that consumers will always need. These types of items tend to be in demand regardless of the economic landscape.
Optimise pricing strategies
In a recession, price tends to be the most important factor for consumers. Therefore, you should evaluate your pricing strategy and consider lowering prices that appeal to price-sensitive consumers.
Of course, that doesn’t mean sacrificing profit margins. Instead, try and land on a dynamic pricing structure where prices change based on supply and demand. This can be an effective way to maximise revenue without losing out on profits.
What does that look like in real life? Consider promotional pricing, such as discounts for regular customers, to encourage repeat purchases.
Leverage your online presence
In the age of digital commerce, retailers need to have a strong online presence to compete. If your store operates solely online, then you're already in a healthy position. But if you have a brick-and-mortar store, it's worth investing in online strategies if you haven't already.
Optimise your website for search engines and make it easy for consumers to find and purchase products with a seamless user experience. Social media can also be a powerful tool for promoting products and building customer loyalty. Use social media platforms such as Facebook, Instagram, Twitter and TikTok to showcase your products, offer promotions and engage with customers.
Provide exceptional customer service
Every little detail helps when trying to win over customers during a recession. They're more likely to shop with brands that make them feel special, so five-star customer service is crucial to your operations.
Train your staff to provide excellent customer service and consider creating a loyalty program to help with retention. If you haven't done so, you should also implement a customer feedback system. It will help address concerns and ensure that their customers are satisfied.
Use retail finance to boost sales
Retail finance helps drive growth and increase sales during a recession. Alternative finance options, such as buy now pay later (BNPL), allow customers to buy products and pay for them over time, and with no interest in some cases.
Benefits of using retail finance
Offering retail finance has several benefits for online stores, from increasing the average order value (AOV) to selling more items. Retail finance …
- Makes it easier for customers to purchase products, increasing your sales in the process
- Payment plans and flexible financing options remove barriers to purchase entry and encourage consumers to buy more
- Improves customer loyalty by easing the burden on shoppers to purchase high-end or high-price point products
- Helps build trust with customers and differentiates retailers from competitors
Retail finance with Deko
Amid a rapidly changing economic landscape, retailers face the challenge of meeting their customers' diverse payment preferences. Deko's retail finance is the panacea for those looking to maximise shopper buying power. With seamless integration into top eCommerce platforms such as Shopify and WooCommerce, you can access different finance options.
We understand the importance of a comprehensive suite of payment methods, and with our retail finance, we offer just that. Give customers a broader range of payment choices for your products and accessories and ensure no sale is lost due to payment limitations.
Moreover, Deko offers a multi-lender solution. If one lender rejects a customer, they'll automatically be redirected to another, increasing their chances of approval. Give your customers the assurance to make purchases with ease.
Selling during a recession
You must get creative and employ various strategies to maintain sales and keep businesses afloat during a recession. Offering retail finance is a particularly effective strategy, making it easier for customers to purchase products and improving customer loyalty during a turbulent time for businesses.