Aussie small businesses are facing a convergence of confronting economic news from rising interest rates to hikes in petrol and electricity costs as well as supply chain challenges.
The knock-on effect is that many small businesses are being forced to raise prices at the exact time their customers too are facing a cost-of-living crunch.
The Australian Bureau of Statistics recorded the largest rise in retail prices since the introduction of the GST in 2000, including a 1.8 per cent lift in March and 1.7 per cent rise in June.
While the forecast for trading conditions in the coming months continue to be challenging, here are some ways to help keep your customers loyal even while you may have to raise prices.
Be honest
While no one likes a price hike, there’s a broad awareness that everyone’s hip pocket is taking a hit in the current environment, so being honest about your circumstances can be an important first place to start.
If you are forced to make a noticeable price hike, updating your website with a note to customers or putting up a post on social media can help to spread the word and help to avoid confusion or consternation at the checkout.
Build additional value into your offering
There are cost-effective ways to remind your customers of your business’ value even if your prices are rising, like offering a sample or gift with purchase, free gift wrapping or a free greeting card.
You may want to consider partnering with another small business to swap discount codes and reward your customers while helping to build another business’ potential customer base.
Offering useful and unique content after purchase can also help build additional value for your customers. For example, you could follow up with an email featuring installation, styling instructions or maintenance tips. Perhaps you could consider using your industry expertise to offer content with added-value such as tips for styling the latest summer trends or for growing a veggie patch.
This has the added benefit of inspiring your customers to return for a new purchase they had not previously considered.
Make a personal connection
Having a personal touch in your customer interactions is one way that small businesses can emphasise their unique value over big box competitors.
Often customers will appreciate hearing directly from the business owners rather than an automated bot and this can help build a rapport and, ultimately, loyalty.
Another way to help boost your personal connection with your customers is to ask for a review or testimonial, and then respond to the feedback on social or Google review channels. This shows you’re listening to your customers and value their feedback.
Similarly, if you receive negative feedback or reviews, consider responding briefly and then take the discussion offline to see if it can be resolved.
Keep your website up to date
Ensuring your website remains up to date is another tool to help keep customers coming back and encourage new business activity.
Making sure you update your products and services is one way to keep customers checking in and regularly adding fresh content can help new customers come back.
You should also consider a recurring website review to make sure your information is current and the tone and style still suit your vision as your business evolves. That can include checks to see if your contact details are correct, your stock levels show as accurate and that your social channels are properly linked to your website.
Whether you’re raising costs to keep up with economic trading conditions or simply refreshing the pricing strategy for your business, following these tactics of honest communication, demonstrating value, making a personal connection and updating your website regularly, can help to keep your customers loyal to your business.
