Navigating the Cost of Living Crisis: helping small business retailers demonstrate value to their customers

The current economic climate is a topic of considerable discussion, and it’s undeniably influencing consumer confidence. Showcasing the value your business offers is more crucial than ever. For small business retailers, this is about actively nurturing stronger customer relationships and, in turn, securing better outcomes for your business.

When we speak of value, we’re referring to the benefits and savings shoppers perceive when they choose to engage with your business. While price is a component, true value often extends further. An item might have a higher initial cost but offer greater longevity, or a purchase could include more units or an added benefit that enhances its overall worth. It’s about demonstrating a clear advantage for the discerning shopper.

For small business retailers businesses utilising our Tower Systems’ POS software, there are built-in tools that help you communicate this value effectively. Here are five practical strategies you can implement to resonate with customers navigating the pressures of increased living costs:

1. Clear Savings with Discount Vouchers: Our Retailer (yep, that’s the name of our product since 1997) software allows you to issue discount vouchers, providing a tangible saving that customers can readily understand. A specific dollar amount off is often more impactful than loyalty points, offering immediate relief. You can structure these vouchers to ensure your costs are covered while clearly showing shoppers the direct financial benefit they receive.
2. Community Support and Customer Savings: Consider partnering with local charities, community groups, or clubs. You could offer their members a special discount, for example, 5% off their purchases. Simultaneously, a percentage of their spend, perhaps another 5%, could be donated to the organisation. This initiative not only drives new foot traffic from a supportive community base but also positions your business as one that gives back, offering indirect value to customers who appreciate social responsibility.
3. Rewarding Loyalty on Regular Purchases: For frequently bought items such as coffee, pet food, greeting cards, magazines, or garden supplies, implementing a ‘coffee card’ style discount can foster customer loyalty. An offer like “buy nine, get the tenth free” provides a clear path to savings on habitual purchases, encouraging repeat business and making essential or regular buys more affordable over time.
4. Unique Value Through Product Bundling: Create exclusive product bundles that offer a combined value proposition shoppers won’t find elsewhere. By curating complementary items into a single, attractively priced package, you can highlight savings compared to purchasing each item individually, providing a unique and compelling reason to choose your store.
5. Savings Through Volume Pricing: Implement volume pricing strategies where the unit cost of an item decreases as the quantity purchased increases. This directly addresses the desire for savings, allowing customers to economise by buying in larger amounts while simultaneously encouraging increased sales for your business.

These five strategies represent just a starting point. The Tower Systems POS software for small business retailers provides a comprehensive suite of tools to help you systemise your approach to pitching value. Consistency in these efforts is paramount to their success, reassuring customers that your business is mindful of their financial pressures.

Tower Systems is committed to offering more than just technical POS software support. We provide business management advice, like these insights, to all our customers. Our aim is to extend our help desk experience beyond the software itself and onto your shop floor, empowering local small business retailers to maximise the value they gain from our systems, especially during challenging economic periods.