How Businesses Can Overcome Inflation Barriers in 2022?

business inflation

For the first time in business decades, consumers are facing an inflationary cycle, making an already difficult economic climate even worse. During the last 2 years, there have been numerous disruptions to the status quo, including the Coronavirus pandemic to the invasion of Ukraine by Russia. 

In light of inflation posing a barrier to consumer purchasing, we have curated the top three things businesses can do digitally to combat current challenges. 

Read on to know how your brand can build consumer confidence during these challenging times, and you grow your business.

Understand The Current Environment 

Despite economic hardship, such as the recession caused by the 2007 financial crisis and the pandemic, many generations have not experienced inflation. The most recent instance was between the late 1960s and early 1980s. 

During the past few months, the Consumer Price Index for All Urban Consumers (CPI-U) rose 7.5 percent. Since February 1982, this is the largest 12-month increase since the 12-month period ended in February. In the last few decades, economic shocks have primarily been associated with unemployment rather than inflation, which influences how consumers react to economic pressure.

Value-based methods should be incorporated into an inflation-reduction strategy in order to cope with inflation’s loss of comfort, confidence, security, and certainty, according to the Kantar report.

“Think about how you can add value back to your brands so that people will prioritize your brand or category above all others,” Kantar’s Chief Knowledge Officer Walker-Smith says. 

1. Create Consumer Value 

During times of disruption, some brands may be able to contribute value to the marketplace rather than taking it away. By offering loyalty programs, free virtual webinars and events, price transparency online, and much more, you can create value for consumers digitally. 

In a study by 3 Tier Logic, 62% more consumers with paid loyalty programs spend more on the brand, and 59% choose the brand over competitors. Engage with your audience and provide the extra value that will keep them returning even as inflation prices rise.

Also, brand recognition plays a big part here. When consumers decide where to cut back on spending, the brands that can stay at the top of their minds will take precedence financially over other brands.

2. Modify Your Messaging 

Whatever their size, brands must continue to adjust their messaging to appeal to consumers whose plans for a return to normal have been disrupted by inflation, war, and pandemic concerns. 

Many brands have managed this challenge with clever messaging. Hyundai, for instance, introduced their ‘Assurance Program’ in 2009, allowing consumers who could not afford their car or lease payments due to job loss to get out of them. Hyundai was able to grow its business during the next few years as a result of this messaging and program pivot, while the industry as a whole declined. 

Invest time to tailor your brand messaging according to the current situations.

3. Deliver Stability + Guarantees

The offer of free shipping, free returns, and money-back guarantees can deliver Stability and guarantees to your customers. For instance, Nordstrom offers free shipping and returns. No minimum purchase is required. With this guarantee, consumers have peace of mind knowing they can return anything they’ve purchased for a refund. No hassles. This will increase the purchasing power of consumers during these difficult economic times. 

You may have gained some insight from these strategies to battle inflation barriers with consumers. When it comes to marketing strategy, PLYXIO understands that every business has its own goals and pain points, especially during uncertain economic times. Contact PLYXIO‘s team of experts today if you want to increase sales, leads, conversions, and brand awareness for your business in this inflationary era!

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