There are few things more worrying to small businesses than a recession. But an increase in the inflation rate is a close second—especially considering where you find one, you’ll most likely find the other. So how can small businesses stay profitable while marketing with inflation on the rise? Keep reading to find out.
Analyze Spending and Profit
One of the biggest detriments to a small business is cash flow, or a lack thereof. Take an audit of your accounting to determine how much you’re making and how much you’re spending. Next, ask yourself where you can cut costs without jeopardizing the customer experience or employee morale.
A few ways to cut costs include:
- Automating processes: Time is money, and you don’t have either to waste. See if any processes can be automated or done away with entirely.
- Reduce waste: Eliminate purchases that are luxuries, knowing you can bring them back later. Go through bank statements to cut back on nonstrategic, unnecessary spending.
- Buy in bulk: If prices are projected to continue increasing, it may be worth it to buy in bulk, so you have more supplies at a lower cost.
Keep Current Customers
We all know it’s easier to keep a current customer than to get a new one, so what can you do to retain existing clientele? Consider starting a rewards program if you don’t already have one. (Who doesn’t like free stuff?) Offer a small discount for honest reviews or customer referrals. (Again, who doesn’t like saving money?) This can also be a good way to encourage excellent customer service from employees.
Increase New Customers
Just because it’s harder to gain new customers than to maintain old ones doesn’t mean you shouldn’t try! When marketing with inflation, you must have a digital marketing budget to work with to attempt to reach new customers. It doesn’t have to be anything crazy. A couple of boosted Facebook posts here and an Instagram giveaway there, and you’re already in front of fresh, new faces ready to see what you have to offer.
This tip is at the bottom of the list because it’s everyone’s least favorite. As a business owner, you don’t want to deal with existing customers complaining about the price increase. And loyal customers don’t want to feel unappreciated—having to pay more for something they’ve been buying for months or years.
The best way around this is to be honest about increasing your prices—maybe even giving a heads-up that the increase is coming so they can be prepared. Tell your customers why and when they can expect prices to increase while letting them know you appreciate their past, present, and future support.
Get Help Marketing with Inflation
Boosting your online presence and visibility is one of the best things you can do to help your business survive record inflation rates. Our SEO and Social Media marketing services do just that by putting your company in front of people looking for what you have to offer. Give us a call to see how we can help your business not only survive but thrive.