In the face of economic challenges, how would your business prioritize customer retention amidst global inflation? What strategies will you implement to ensure loyalty from your existing customer base?
In 2022, Southeast Asia experienced a noteworthy economic rebound, registering a substantial 8.7% recovery after the pandemic-induced disruptions. Nevertheless, the growth hype simmered as the economy progressed into the second quarter of 2023.
Source: McKinsey & Company
Hold on tight, SME! You don’t need to hit the panic button just yet! In fact, this is the perfect time to re-evaluate your value proposition to enhance customer satisfaction.
#1 Operate with Trust and Transparency
Have you ever noticed that customers are surprisingly open to subtle changes in pricing when they believe they are getting a fair value?
In Singapore, small food operators such as cai fan (economy mixed rice) stores nail it by being transparent about the costs of each dish. Besides, it is common for sellers in hawker centers to display notices communicating upcoming price adjustments and their effective dates.
Similarly in Malaysia, restaurants are not only displaying notices in-store but on their social media pages as well. For instance, Siampot Buffet Steamboat & Grill, a hidden gem next to KLCC announced their updated menu prices on both channels. In addition to pricing updates, they have also displayed notices on additional charges for any food wastage.
Source: Siampot Buffet Steamboat & Grill
Meanwhile, in the Philippines, the government entity Department of Trade and Industry (DTI) protects Filipino consumers from sudden or unjust price increases by publishing price guides for daily necessities and seasonal items. This move urges consumers to compare prices and empowers them with the right to choose. Having a price guide also enables business owners to be more transparent about their pricing, thus helping promote consumer trust.
These direct approaches empower customers to make well-informed, budget-friendly decisions, thus avoiding surprises during payment. Most importantly, they foster customers’ sense of trust in your products or services, thus becoming more receptive to embracing new prices – a critical factor in successful customer retention.
#2 Encourage Returning Customers with Loyalty Reward Programs
Let’s discuss another game-changer that keeps your customers in the loop through loyalty reward incentives.
Here’s the scoop! Seattle-based coffee giant, Starbucks offers a loyalty rewards program in which every purchase grants customers accumulated stars (points), freebies, and exclusive perks. In the Philippines, Starbucks provides consumers with multiple ways to earn stars which include in-store purchases and online orders via Grab and Lazada. Starbucks Philippines’ comprehensive loyalty program creates a special and rewarding experience for every customer, encouraging them to buy more, earn more stars, and receive more rewards.
Ultimately, implementing loyalty reward programs is a cornerstone for a strong customer retention strategy. It ensures your business remains at the forefront of customers’ choices and strengthens your engagements with them.
#3 Customers Opt For Value Over Price
Customers often prioritize value over price when deciding what to buy. As such, the F&B industry often emphasizes unique selling propositions and benefits to justify their pricing strategies.
One interesting F&B sector we can look at is the hotpot business, which has been increasingly popular across Southeast Asia over the past decade. Among them, Haidilao Hot Pot stands out, renowned for its exceptional customer service. Their distinctive selling points include impressive services such as noodle-pulling performances, face-changing performances, providing BYOB (bring your own beverages), and ziplock bags, setting them apart consistently.
Customers waiting for a table are also lavishly attended to, enjoying an array of complimentary services such as free snacks, board games, shoe shines, hand massages, and manicures. These services are aimed at transforming customers’ waiting time into an integral part of the overall experience, ensuring they are thoroughly pampered.
Looking at Haidilao Hot Pot’s business model, we can see that these strategies are targeted at customers who prioritize perceived value over price.
#4 Elevate Business with Exceptional Customer Service
Exceptional customer service is the core ingredient for business growth!
Every customer interaction is an opportunity to foster positive relationships, which can ultimately translate into increased sales and revenue for your business. In retail, cultivating ‘empathy’ for customers is highlighted as the essence of tangible and meaningful experiences.
In addition, fulfilling customer needs and introducing new products that align with their preferences are also key to keeping customers satisfied. These efforts are more than just about running your business as usual. By cultivating customer interest and affection, you are paving the way toward sustained customer retention.
#5 Embrace Innovations and Efficiency for Sustainable Customer Retention
Do you know that enhancing your business’ operational efficiency can be a strategic response to inflation-driven cost fluctuations?
Automation via technologies serves as your time and money-saving champion. Besides handling manual and repetitive tasks, these technologies are designed to boost productivity and accuracy as well.
Optimizing efficiency for your business is achievable with Qashier’s cloud-based POS system. It is a super smart sidekick that streamlines your operations, be it inventory management, sales tracking, or promotions. Additionally, Qashier offers automated features that manage e-invoices and purchase orders – an efficient tool that helps your business save time and costs!
Qashier guarantees a hassle-free installation in under 10 minutes, eliminating the need for technical expertise. It features a user-friendly interface designed for easy learning and use by anyone. Additionally, our local team provides responsive technical support seven days a week.
Affordability is a key aspect of Qashier. Our cost-efficient, comprehensive package includes hardware, software, setup, training, and ongoing local support throughout the week.
Contact us to explore how Qashier’s Smart POS can align with your business needs.
More about Qashier
Qashier offers multiple digital solutions, including QR code table ordering, table management (F&B), employee management, customer relationship management (loyalty programs), inventory management, data analytics, and track payments, in an all-in-one device.
Qashier promises a seamless setup within 10 minutes, without the need for technical expertise. It boasts a user-friendly interface that is simple for anyone to learn and use. If you require assistance, you’ll find 7 days-a-week responsive technical support from your local team.
Try the Qashier app for free on your own Android device! Speak to us to see if Qashier’s Smart POS can meet your business needs. Schedule a meeting with us here, or contact us at +63 917 QASHIER (7274437) (Whatsapp and Viber) or email at [email protected].