Weekly Business Tip #4 from Snap Finance: 3 Tips to Reduce COVID-19’s Impact on Your Business
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After weeks of stay-at-home restrictions, consumers are moving into a new phase: boredom. People are looking for creative ways to work, cook, exercise, and learn while at home. Is your business prepared to satisfy their needs?
The better you are at identifying and meeting your customer’s needs, the better chance your business will have of surviving COVID-19. Follow these 3 essential steps to help your business succeed.
- Identify Consumer Needs
People need a comfortable environment at home to cope with uncertainty and monotony. That’s why activities like bread baking, home improvement, and even pet adoptions have increased in popularity.
Worried about the impact COVID-19 will have on their finances, consumers are more vigilant about their expenses and looking for ways to save. In a survey by Global Web Index (GWI), 8 in 10 respondents said they’re delaying big purchases while 4 out of 10 are looking to cut day-to-day costs.[i] Offering a broad spectrum of financial alternatives will help ease these concerns.
Customers are also nervous about their safety while shopping. In that same GWI survey, 46% of respondents declared an intention to continue shopping online more than in-store.[ii] An online presence, as well as offering curbside pick-up and free delivery, is vital in attracting virtual customers. And for those who still prefer to visit your store, encouraging employees to wear face masks, installing sanitation stations, and touchless payment systems is indispensable.
- Offer Custom Solutions
People need solutions to their problems. This broader perspective will help you develop a personalized offer for your customers and differentiate you from your competitors.
Help people find furniture to work comfortably from home and be productive. Incorporating exercise equipment in your product catalog may help sports enthusiasts stay active at home. To make your offer more attractive to these customers, include free delivery and present financing options for them to choose. Helping each customer find the best solution to their specific needs will add a personal touch - something that a big online retailer can’t easily replicate.
Sometimes credit issues are the real problem to customers, especially when it comes to big-ticket items or services. In the same GWI survey, more than 45% of consumers approve of companies offering flexible payment plans. This is true among customers of all ages and income levels.[iii]
- Reward Loyal Customers
According to a study by Frederick Reichheld from Harvard Business School, getting new customers is somewhere between 5 and 25 times more expensive than retaining happy customers. [iv] Developing a loyalty program can produce long-term results, and it could be as simple as giving punch cards. Don’t forget that the purpose is to keep customers coming back by rewarding them, so make it easy!
When asked about how they feel about loyalty perks offered during COVID-19, over 80% of customers in the GWI survey said they highly appreciate them.[v] If you dedicate time and effort to taking care of your customers, they’ll keep coming back, generating a steady income for your business. Happy customers will also help spread the word about your excellent service. Reward them!
COVID-19 has pushed businesses around the world to work in creative ways that are safe and relevant to customers. The virus may remain for longer than expected, and consumers are growing tired of bad news. Offering a personal touch and imaginative solutions to their problems will generate long-term benefits for all.
[i] Global Web Index coronavirus findings May 2020 - Multi-Market Research (Page 7)
[ii] Global Web Index coronavirus findings May 2020 – Multi-Market Research (Page 8)
[iii] Global Web Index coronavirus findings May 2020 – Multi-Market Research (Page 53)
[v] Global Web Index coronavirus findings May 2020 – Multi-Market Research (Page 55)
About The Author: Monica Tucker is Sr. Marketing Content Writer at Snap Finance.
About Snap: Specially designed for the furniture industry, Snap Finance helps credit-challenged customers get what they need with fast, flexible, lease-to-own financing. Through our free EDGE program, we boost your secondary financing business by up to 30%. Contact us at 866-871-0311 or visit snapfinance.com/partner to learn how Snap can help your business.
Weekly Business Tips from Snap Finance
Articles in Weekly Business Tips from Snap Finance