Brand loyalty is at risk, and small businesses have the potential to win as the current economic meltdown changes old buying habits.
Brand loyalty can be defined as a customer’s commitment to buying a product or service repeatedly from a specific brand or store. Online retail does not fall under this category, as big brands are still the dominant. Smaller retailers may be able to find new opportunities to grow brand awareness as economic conditions continue to worsen. With an online storefront, and some creativity, they might even be able to get their products to market.
Mintel International, a survey house, reported last September that 40% of primary household shoppers started to buy store-brand paper products as they were less expensive than national brands.
It’s easy to create a gap between brands and customers online. Discounts and coupons are making a huge impact on buyers’ buying behaviour. A study in January from microtrends researchers Penn, Schoen & Berland Associates, Inc. (PSB) identified a new demographic segment it labeled “recession shoppers.”According to PSB research, 64 per cent of “recession shoppers”A coupon or discount allowed them to purchase something online that they would not have otherwise.
How can small e-commerce companies let bargain hunters know where they can find them? Experts in the industry agree that affiliate marketing is one of the most cost-effective ways to market your products.
LinkShare.com is an affiliate network provider that can help small businesses reach a wide audience and offer smart business advice. LinkShare.com provided sales tips to merchants before the holiday shopping season. They saw a 27 per cent increase in year-over year sales at the same store, which is well above what the national average.
Even a small number could make or break small e-retailers in this current economic climate. Recent research has shown that there are a few key keys to success. These include establishing an online presence, attracting buyers with coupons or free shipping, and expanding one’s reach to as wide a range of potential shoppers as possible.
