How Your Business Can Benefit From Increased Consumer Confidence

Recent stock market gains have improved consumer confidence. Here are some ways your business can take advantage of this upswing. MARCH 30, 2017 Business owners know that consumer confidence can have a profound effect on the demand for your products and services. While concerns for the economy can cause even the best customers to avoid spending, increased consumer confidence as reported this week in response to U.S. stock indexes rising can be good for business. “Increased consumer confidence not only makes it easier to make sales, it provides business owners with the ideal opportunity to build their businesses,” says Regina Morrill, a realtor with Penman Realty. “How confident consumers feel is at the heart of whether they’ll buy and how much. When there’s enthusiasm about the economy, that’s the time to concentrate all of your efforts on making as many sales as possible.” High consumer confidence can mean a boost to business, agrees Ted Mayeda, co-owner of the Orange, California-based gardening center Fairy Garden Expert. “When customers feel optimistic about the economy, we find it a lot easier to encourage them to buy something extra or invest in items that they hadn’t felt they could afford to purchase before.” Rather than waiting for customers to buy more products and services, consider making a concerted effort to take advantage of the upswing in consumer confidence. Here are some tips for monetizing increased consumer confidence while also creating more confidence in your business.

1. Build Customer Loyalty

Now that you have their full attention, you can use this time to encourage loyalty among your clientele. Loyal customers generally spend more money and visit more often. They can also be your best marketers. “’Super fans’ of your business do a better job than you could ever do of telling others about your products and services,” says Mayeda. “You create such loyal customers by offering them exclusive opportunities.” Consider giving your best customers special savings and opportunities to try out new premium products or services at substantial discounts. You could further encourage their loyalty by asking their opinions of those products and services. If you make adjustments to those products and services because of customer opinions, consider acknowledging them in some way.

2. Encourage Additional Purchases

A great time to consider offering additional sales is when customers are feeling flush. If each loyal customer buys one more item than usual, that can increase sales over time and may boost your bottom line. Even better, this can help train your customers to buy more in the future.

3. Take the Opportunity to Up-Sell

With consumer confidence at a high, you may want to suggest that customers consider buying more expensive, higher quality options from you. You can tell them about the benefits of improved products. Concentrate on positives, such as product longevity and durability, if applicable. Offering good reasons and alluring benefits may encourage customers to buy more expensive products.

4. Hold a Consumer Confidence Sale

Mention the uptick in stocks as the reason for your sale. “Letting customers and clients know that there are favorable economic conditions and that you’re celebrating by offering discounts increases excitement about buying and in particular builds confidence in your business,” says Morrill. “Giving the impression of profiting from the market doing well and sharing that with your clients will instill in them increased confidence in you and your business.”

5. Increase Prices

If you’ve been thinking about raising your fees and prices, now may be a good time to do so, since consumer confidence is high. When customers feel confident about their finances, they may be more likely to understand if you explain that you must raise prices in order to stay relevant and competitive. They may be more apt to accept the price increases without questioning since they may feel more confident about their financial situation and the financial climate in general. If you’re unsure how customers will react to higher prices, try increasing them gradually, or only raise prices of certain items.

6. Reposition Your Products and Services

Consider taking the opportunity to upmarket your products and services at this time. Rebranding and repackaging may help your company and services appeal to a higher level, more sophisticated and affluent buyer. This can be a good opportunity to restructure your business so that it appeals to the type of clientele you desire. Read more articles on getting customers.

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