Cutbacks on spending continue to occur as inflation & the cost-of-living crisis persist

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Cutbacks on spending continue to occur as inflation and the cost-of-living crisis persist, with February footfall 8.8% below pre-pandemic levels.

Consumers will remain selective about how they spend their money both in-store as well as online, so brands must show customers value, while ensuring strategies are sustainable in the long run. In an increasingly digital world, where instantaneous service is now a minimum expectation, brands would be wise to ensure their customer communication is consistent and streamlined. Retailers will better meet consumers’ expectations in this rocky economic climate by ensuring processes are simple and accessible, and proactively informing customers when needed.

The second a customer does not trust a brand, there is no going back. Retailers need to offer communication and understanding in times of crisis, as well as practical ways to help customers, such as loyalty programmes. After all, it only takes one bad experience to lose a customer. By managing the customer experience with the right communication strategy, retailers can safeguard their brand promise and maintain brand loyalty as they weather the storm for the months to come.