With Consumer confidence on the increase (recorded at it’s highest for 18 months) with the British Retail Consortium (BRC) showing an overall increase of 10 points to 75 – in comparison to an all-time low of 65 in April 2009.
However, with more and more people (66% according to the BRC’s figures) trying to save money on utilities such as gas and electricity and more cutting down on takeaways and other luxuries this suggests that the climb out of the recession is still likely to be long and slow.
Many business-analysts are suggesting that it is down to the consumer to spend more in order to help the country emerge from the economic recession. However, I am of the opinion, with the current unemployment levels still on the increase (predicted to be 2.75 million by November 2010) this is a relatively unhelpful statement, no matter how true!
So what can small businesses do to aid this revelation in becoming a reality?
Damn good question, let’s do a little ‘analysis’ ourselves shall we:
- Cut prices where possible.
- Offer incentives to customers to encourage them to buy more.
- An interesting theory is not to encourage your customers to ‘buy more’ but ‘buy better.’ Let me to take a minute to explain this theory to you – if we take the example of someone looking to upgrade to a new car. Instead of the quick sell why not try and sell the car with better safety features and low emissions – this way growth will come from higher profits, not quicker, frequent sales. To read more on this then check out Cool Rules Pronto‘s blog for more information.
- What are your competitors doing? Take a walk around their stores one day and really take a close look at how they’re operating and why they remain so succesfull in a recession.
- What is the customer experience like and how can you enhance it to interest and encourage customers.
These are only a few suggestions and there are many more examples that can be found on the internet,
why not check out: