Due to volatile economic fluctuations throughout the year, South African consumers are becoming more cautious when it comes to spending their money. While this fosters a more financially-conscious society, it does no favours for retail outlets.
From fuel to school fees, the New Year brings with it substantial percentage increases, for which many South Africans have already started budgeting. Year-end bonuses, 13th cheques, and spare income has already been allocated which means that frugal spending habits can be expected over the festive period. An effort to turn a profit, regardless of the financial climate, remains a top priority for retailers. Here’s how to win over cautious shoppers during the festive season:
Cater for all budgets
Cautious shoppers want to feel included which is why it is important to ensure that you cater to all budgets over the festive period, regardless of your product and service offering. With diversity comes a range of affordability brackets, which highlights the importance of making an effort to properly understand your customer. From large families to couples, ranging from lower to the highest income brackets, ensure that you have a special or a discount that is tailored to a certain group’s buying habits and purchasing trends. Using your POS system, you will be able to retrieve and analyse this data to meet your customer’s needs.
Aim to target the right customer
Social media is a retailer’s best friend, especially when used properly. One of the most effective means of marketing on a social media platform is targeted ads that are designed to speak to a particular customer. Targeted ads will send the right message to the customer with the highest purchasing power, ensuring a profit turnover for your outlet.
Put a break on sales pressure
A cautious shopper will most likely have done research before visiting your store, which means that any intimidating sales interaction has the potential to turn them away. A cautious shopper will already have their budget calculated, and their trajectory set; instead of coaching your staff on approaching them with the intention to sell, redirect that energy into the intention to assist the customer as quickly and as efficiently as possible. The chances are that, when treated in a more relaxed way, those customers will return again and again, ensuring loyalty and longevity.
Use your data
A POS system is not simply for stock management and sales records; it can provide decision makers with valuable data that should be used to amplify the customer’s experience. From shopping trends to marketing insights, decision makers will be able to take a closer look at what makes their customers tick, and can then align their marketing, sales, and festive season strategy to ensure that they are meeting their customer’s needs.
Winning over a cautious customer can be challenging. However, when armed with the right approach, retail outlets can convince customers to spend their money, and return, despite the tough financial climate. For more information on how we can help convert your customers, contact us.