Small Business Tip of the Month
Matching your services and products to consumer psyche
In a recession consumers tend to look for ‘basic’ packages. Now is the time for businesses of all shape and sizes to be ‘stripping back’ their product and service offerings to provide ‘basic’ solutions. Unbundle, unclutter and provide the simple product/service – no frills style.
Of course, small businesses tend to be far more nimble that their larger contemporaries and therefore, have significant advantage in how responsive they can be to reacting to the all important ‘consumer psyche’.
Whilst the majority of consumers may still have a similar amount of money to spend – the scaremongering in the news and press certainly assists with the ‘only spending on the essentials’ mentality. Loyalty to brands goes out the window – as the emphasis focuses on costs and the bottom line – and everyone is looking to grasp a ‘bargain’.
We’ve seen the downturn in many large businesses that can’t react quickly enough to changing consumer psyche. Yet for small businesses – the fall of larger businesses present gaps – and great opportunity for small business to nip ‘under the fence’ and take advantage.
So perhaps for small businesses now is the time to really push ahead:
• Assess your products and services – the ‘basics’ ranges (think supermarkets for one example) are doing incredibly well at the moment. If the mentality is buy the minimum – then if they want a phone, simply sell a phone – (not all the additional add ons and value added) always make those accessible to the customer – but not necessary! Ask yourself - do you have the ability to ‘strip back’ and create a low cost ‘basic’ product – attractive and highly competitive?
• Are you in the fixing, mending, repairing business? These businesses again are doing very well – as the ‘psyche’ is fix rather than buy new. Is there a way you can build a ‘let us service / fix for you – rather than ‘start again and buy new’?
• Holidays – the emphasis has changed from luxury to camping and caravanning (a massive 70% increase this year!) – as that’s what consumers think is the ‘right thing to do’ in a recession. Is this your market – are you pushing and promoting yourself as best you can. There’s a huge market out there now – so be sure to consider the ‘psyche’ of these consumers when marketing.
Made Simple Group Ltd
Registered Office address: 145 - 157 St John St, EC1V 4PW, London
Company Number: 05104525 Vat Number: GB820956327