As the back-to-school season kicks off, many parents are already shopping for their children, but this year feels different. Inflation is squeezing budgets, forcing parents to prioritize essentials over brand loyalty. Average spending per child is around $586, with middle and low-income families making tough choices to stretch their dollars.
Lupine Skelly, retail research leader at Deloitte, provides valuable insights into these shifts. Lupine emphasizes that price sensitivity is paramount in this climate. With shoppers prioritizing essentials, retailers need to offer competitive pricing and tangible value propositions. This doesn’t mean slashing prices indiscriminately. Instead, it’s about strategically focusing on customer experience to differentiate and build lasting relationships.
With price driving purchasing decisions, brand loyalty is fading. Six out of ten consumers are willing to switch to cheaper retailers, and nearly half are choosing private label products. To combat this, retailers must focus on delivering an outstanding customer experience that goes beyond just offering low prices.
The pandemic has accelerated the shift to online shopping, but in-store experiences remain vital, especially for items like clothing. A seamless omni-channel experience is crucial, where online and in-store shopping complement each other. Retailers need to invest in digital tools and in-store enhancements to meet customer expectations.
Retailers that streamline processes, like returns, build trust and encourage repeat business. Loyalty programs that offer tiered rewards or partnerships with other brands can also create more value for shoppers.
Rebuilding trust is essential. Many consumers feel that retailers exploited inflation by raising prices unnecessarily. Transparency and fair pricing can help regain that trust. Consistency across all touchpoints, from online shopping to returns, strengthens customer relationships.
As the season unfolds, retailers who focus on value through customer experience, omni-channel strategies, and trust-building will stand out. Success lies in creating lasting relationships, one positive experience at a time.
Blake Morgan was called “The Queen of CX” by Meta. She is a customer experience futurist and author of three books on customer experience. Don’t miss her new book, “The Eight Laws of Customer-Focused Leadership.” To learn more visit www.8CXLaws.com.
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