Prices and interest rates are rising, and many experts predict a grim outlook for the nation’s economy over the next few years. This affects you not only as a consumer but also because you own a business. Although you will never be impervious to the effects of the potential downturn to come, you can take steps to make your company recession-proof.
1. Embrace the subscription model.
They’re not just for gyms, meal kits, and daycare centers anymore. Virtually any product can be sold on a subscription basis. Once you discuss it with your merchant service provider and configure your point of sale system properly, you can set up recurring billing and ongoing monitoring of accounts with ease. Shoppers will get products with predictable billing and delivery; you’ll have cash flow you can count on and customers motivated to stay with you for the long haul.
2. Offer free shipping.
Don’t discontinue this tried-and-true customer favorite. At the very least, limit your free shipping to purchases over a certain amount. By holding onto this popular bonus, people will feel like they are getting a good deal. They might even add more to their shopping cart just to get the cost-free delivery. That means more money in your pocket.
3. Jettison paid ads and other expensive marketing strategies.
We’re not saying you shouldn’t advertise; just do so in more economical ways. Case in point: Let your customers be your top ambassadors. Incentivize social media reviews and product testimonials with gifts and discounts. Also don’t forget to reward shoppers for referrals that result in purchases. With this strategy, the word still gets out about your store, but you don’t need to foot the advertising bill.
4. Manage your inventory more effectively.
Each piece of merchandise represents money you have spent that you don’t recover until someone buys it. Use your POS analytics and reporting tools to learn which items are top sellers and which are languishing. Be sure to reorder in plenty of time to ensure that you always have the former on hand, and brainstorm ways to off-load your less popular goods onto businesses in other markets whose customers might be more receptive.
5. Solidify your brand identity.
People will continue doing business with companies they know and feel good about. To that end, take steps to ensure that your store’s look and feel are consistent across all channels. Clarify your identity and mission to your core customers, and they will help you to make the most of your resources during difficult times.
6. Enhance your product content.
Your website and social media pages are places where you can let your merchandise speak for itself. Feature 360-degree images for prime viewing, and write thorough, expressive content descriptions. Showcase customer reviews and questions so that potential buyers can gain confidence in your products based on the experience of others. This will also help to reduce product returns, which are often made by people who misunderstood what they were buying.
7. Post customer videos.
Sure, you can make your own visual content, but some of your best testimonials will actually come from satisfied buyers who also have a flair for media production. These brief clips do more than give information about merchandise; they provide social proof that inspires other people to make a purchase on your ecommerce payment gateway.
All things come to an end, and that’s even true of recessions. But until the economic doldrums lift, putting these ideas into practice will help to shield your operations from the worst of the financial tempest.
