Inflation Reaction: Stick to the essentials

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UK Inflation remained at double digits in March, and food prices have risen at their fastest rate in 45 years as the cost-of-living crisis continues to grip the UK.

The ongoing double-digit rate of inflation this month indicates that the cost-of-living crisis is not going anywhere and price hikes will continue to impact consumer spend. People’s habits are changing – buying more basics or only sticking to the essentials. Households are reining in spend across non-essential items to accommodate for higher food shop bills.

Retailers continue to try new techniques to keep consumers on side. We’re seeing price matching and price locks across the board – in addition to more discounts in areas where they’re not typically seen, and longer sales periods so retailers can create their own supply and demand matrix.

But price point isn’t necessarily the secret ingredient to brand loyalty. One bad experience and a shopper may decide not to return, regardless of whether an item is cheaper. Retailers need to win customers over and this starts with making them feel valued – for example, by providing personalised communications or tailored rewards via loyalty programmes, in addition to timely and helpful responses to queries. A loyal customer base is built from great experiences which are consistent, thoughtful, and which always keep customers front of mind.