Inflation’s Pressure on Marketers Felt as Prices Keep Rising

Consumers have much to complain about as prices for essential goods continue an upwards rise in price. Many economies recovering from the covid-19 contractions are struggling to make supply meet new demand.

Fractured supply lines aside from lockdown days, the continued conflict in Ukraine has had a great impact on prices of staple food items like wheat and sunflower oil to name a few. The UN Food Price index shows that prices are at their highest ever since records began 60 years ago.

Marketers need to face up to this challenging landscape where dollars and cents need to make sense to consumers, brands have to be especially aware of how price rises can affect customer perceptions and understand their behaviour in order to mitigate the risks of them going to a slightly cheaper competitor.

At Insightzclub we are constantly monitoring consumer behaviours, here are some of the things that we believe marketers need to do to boost their campaigns.

Offer New Payment Options

Flexible payment options isn’t a new feature, but it’s can be an attractive feature to offering at times when customer disposable income and confidence is low. Many consumers have bought into “Pay Later” schemes offered by Grab, Shopee and Lazada. By providing flexible payment options a brand can gain access to new customers who may have felt the price was out of their budget.

Leveraging on Loyalty Programs

With more consumers seeking membership privileges, brands can invest more into these programs that act as a core defensive strategy against inflation. Not only do loyalty programs offer added value to customers they also serve to dissuade the competition from eroding your brands market share.

Bundles and Value Packs may sell better

As consumers continue to cut away non-essential items from their limited budgets, brands must be able to communicate their value proposition to benefit customers.

Bundling items into a combination that offers the most utility to customers will offer compelling savings and may even convert loyal customers into brand advocates.

On the flipside, it’s also important to revaluate any existing bundles which can be offered individually so that the certain goods can be more accessible for price-sensitive customers.

To learn more about consumer behavior and how to elevate your brand feel free to reach out to us.

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