Selling is never easy, especially when the economic conditions promise to get tougher. Whether it was the COVID-19 pandemic a few years ago or the current market slump, retailers find themselves navigating challenging times every now and then.
However, these hard times also reveal several hidden opportunities for business growth. And those who are prepared to adapt and innovate have every chance of making the most of them.
In this post, we’ll present some useful tips for retailers to turn challenges into opportunities and not only close sales, but also keep the momentum going.
6 Tips for Selling in a Tough Market Environment
1. Focus on Value Rather Than Price
91% of consumers worldwide say the most important thing they consider when making a purchase is that the product/service offers good value for money.
What’s the takeaway for retailers here? Shift your focus from product pricing to offering the maximum value to your customers. Remember, selling in tough times gets difficult primarily because people become averse to spending on items that they don’t consider valuable or useful. Therefore, it makes sense to think strategically and emphasize the value your product or service offers.
This, however, doesn’t mean that you offer the cheapest products in the market just so people will buy from you. Instead, show how your offerings will help customers save money in the long term, boost efficiency, or solve their specific problem.
2. Adapt Your Offerings
We’ve mentioned that businesses must adapt to the changes in the economy. By that, we mean businesses need to be flexible and respond appropriately to market fluctuations. Adapting your offerings to meet the changing needs and budgets of customers will take your business a long way.
From introducing new pricing models and bundling services to offering customized solutions and using discount strategies, you must meet customers right where they are. Doing so will not only keep your business competitive, but also reflect your commitment to satisfying your customers’ needs, regardless of the economy.
3. Be Ready to Meet Customer Demands
No matter the economy, retailers should ensure they’re always well-stocked. Orders may be hard to come by, and when they do, you don’t want to disappoint your customers.
While having low inventory is undesirable, overestimating it can cause trouble, too. To avoid these scenarios, invest in accurate demand forecasting and predict the required inventory levels. This will ensure you’ll always meet customer demands.
It also makes sense to maintain buffer inventory in case of supply chain fluctuations and unexpected events. This will help you manage variations in demand and supply while minimizing the risk of unfulfilled orders or interrupted services.
Further, ensure smooth transportation and delivery by keeping the product details updated at all times. Don’t forget to add attributes such as product SKU, size, brand, color, type, price, and so on. This will help you track and trace your products in the distribution chain. You’ll never be caught off guard.
4. Customer Experiences Will Matter More Than Ever
Delivering exceptional customer experiences is crucial to stay relevant and ahead of your competitors, who are working equally hard to improve sales. When selling during a slump, provide existing and new customers with the support they might need.
Consider changing your sales messaging in accordance with the times. Make sure your communication evolves to reflect empathy and genuine support for customers. Make this change on all platforms, including your business’s online face: the website.
To help online customers, have clear shipping and return/exchange policies. If you offer same-day delivery, mention this on your website. Partner with professional courier services to ensure reliable and timely deliveries and pickups, which will provide real value to customers.
Other ways to be empathetic include providing accurate information about your pricing and inventory, using chatbots to provide instant customer support, and so on.
Here’s an important tip: Don’t (unpleasantly) surprise your customers with additional shipping costs during checkout. 34% of consumers worldwide say that the delivery cost is the most important consideration when shopping online. In fact, 48% of US adults will abandon their online shopping cart during checkout if they find the extra costs to be too high.
5. Upsell and Cross-Sell
Upselling and cross-selling can work wonders in improving your sales, especially among existing customers who already trust your offerings. To upsell effectively, you can recommend a higher-value, better-quality product similar to something the customer has shown interest in. This will boost the average order value, while also enabling higher customer satisfaction levels.
Cross-selling is slightly different in that you’d be recommending solutions that complement the product/service your customer is already considering buying. For instance, if they intend to buy a new phone, then recommend phone covers or chargers that complement or support it.
This results in a win-win for everyone involved: the customer gets the complete package for their needs, and the retailer can process a higher-value order.
6. Strengthen Omnichannel Strategy
Retailers must create seamless customer experiences across channels by tracking them in their customer journey, collecting vital behavioral insights, and reallocating their resources for better sales outcomes even in tough market conditions. This will enable you to engage more meaningfully with customers. After all, they always welcome consistent and coherent sales experiences across all touchpoints. But how can you get there?
Start by identifying your customer’s priority platforms. Consider the devices and channels they’re using to engage with your e-store. This could be your website, social media platforms, email, offline store, and so on. What channels are they more inclined towards and why? This information will help you leverage these channels in the most optimal manner.
Next, develop buyer personas that reflect your target audience. This will help you gain a deeper understanding of your customers’ needs and motivations. You’ll then be able to design schemes and offers that differentiate you from your competitors.
Segment your customers based on their location, browsing behavior, or level of loyalty/engagement. This will help you optimize channel selection and fine-tune your promotions to match customers’ expectations.
You can then start drafting personalized customer journey maps that consider each touchpoint your shoppers use. Last but not least, integrate all of these channels and systems into a comprehensive omnichannel framework. This will help you build supportive connections between the checkpoints that customers are using to hop from one channel to another.
Wrapping Up
In times when customers carefully consider every purchase, retailers tend to hear the word “no” more frequently. But it is important to continue to adapt and innovate in order to stay relevant as you ride out the rough patch.
Keep making those sales calls, sending out the right messages, maintaining inventory, and engaging with your customers. Implementing the above-mentioned tips will surely help you power through the sales landscape regardless of the economic environment. Remember, tough times don’t last, but tough businesses do.
