With inflation and the cost of living on the rise, consumers prioritize saving their money for emergencies. Here’s how you can appeal to those who are choosier with their cash flow. 

According to Euromonitor International’s Top 10 Global Consumer Trends 2023, 47% of consumers are planning to keep their overall spending unchanged while 28% are planning to decrease it. Only 25% of consumers are planning to increase their overall spending for the year.

Why is that? The rise in inflation and cost of living have caused consumers to become wary about their spending. This is very true, especially with a certain group of consumers Euromonitor refers to as the Budgeteers. In fact, these consumers will continue to save—even if inflation and the cost of living go down at some point. 

Whenever there’s a threat to their financial stability, it is no surprise that Budgeteers will reallocate their spending or skimp on certain purchases in response to price hikes. They will also choose to pay a higher price for everyday needs, opt for more affordable alternatives, or just not buy altogether. 

As a business that is likewise going through difficulties due to high production and operational costs, how do you cater to the Budgeteers in your target market? Here are some tips to keep in mind. 

Embracing E-Commerce

The rise of e-commerce in the last few years has been very beneficial for Budgeteers, mostly because e-commerce saves consumers from having to spend on gasoline and fares just to avail of products and services in stores. E-commerce is a convenient and accessible alternative, as the goods are delivered right to their doorstep!

Having an online presence—especially if you have a retail business—will help make your business more accessible to those who are unwilling to visit stores or live far from them. Plus, the rise of digital modes of payment makes it convenient for both businesses and consumers to do business online. 

However, it should be noted that accessibility and convenience are not the only reasons why consumers choose to shop online. According to Euromonitor, many consumers prefer using e-commerce to get the price out there for goods and services.

With that being said, it is also important for your business to offer good deals and prices that will appeal to Budgeteers. Discounts and promos, after all, are a great way to get attention, as it gives them more bang for their buck.

Flexible Payment Plans 

Budgeteers are all about looking for flexible and cost-effective options, which your business should aim to provide in order to appeal to this type of consumer. While providing digital payment options like bank transfers and micropayment services like GCash help a lot, there are also flexible payment plans that companies can consider. 

An example of which is the “buy now, pay later” plan, which is defined as “a loan offered to a customer at the point of sale so they can purchase merchandise on credit but without a credit card.” However, companies should be careful with implementing flexible payment plans, as the risk of late payment or even non-payment is high. 

Rewards and Perks

It’s important to keep customers loyal, and one of the best ways to keep Budgeteers loyal is through rewards and perks. For one thing, these incentives give additional value to your products and services and give Budgeteers more reason to choose you instead of other competing brands.

An example of this is launching a rewards or loyalty program that can give consumers freebies and even discounts whenever they purchase or avail of services. Another example is introducing exclusive perks, such as members-only sales and discounts. 

Just be careful not to offer price cuts and sales too often, as it lessens the perceived (and eventually, actual) value of your product or service.

Resale and Rental Options

Resale and rental options are another way to appeal to Budgeteers, as this allows them to utilize a certain product for a fraction of its original price. 

Many consumers gravitate to secondhand or resale products in good condition because of their cheaper prices. The same is true for products that can be rented. This is because consumers can make use of the product only when they need it, return it, and then pay a smaller fee compared to actually purchasing the product. 

Providing resale and rental options can also be a viable business opportunity for those looking to start a new business. There are different niches and markets that entrepreneurs can look into, including bridal and evening gown rental and secondhand clothing or home appliances.