“Do more, with less”
That’s the message from the latest Nielsen report on consumer spending. As the recession continues to trouble consumers, they are changing their spending patterns to compensate. Nielsen reports that All-Outlet shopping hit an all-time low in February as consumers continue to hold back on spending, with most spending continuing to be in grocery stores for eating at home. Nielsen offers a few pointers for organisations looking to ride out the recession:
With less store traffic, retailers need to capitalize on consumers’ time in the store like never before. Three priorities should top the list for every retailer:
- Satisfy loyal shoppers with savings linked to shopping frequency and spending levels.
- Entice new shoppers with promotional offers such as a free reusable shopping bag or product.
- Offer value and low prices, but more important, stake a claim to at least one or two points of differentiation to maintain a competitive advantage.
The last point should be seen as rallying cry for the customer experience in economic hard times. If your customer experience drives and rewards loyalty, whilst providing a point of differentiation from competitors then consumers are more likely to return to your store. You can cut costs and provide offers all year long, but if everyone is doing this then your only point of difference is whether your experience is one worth returning for.
