5 Retail Value Strategies to Attract Price-Conscious Consumers

At a time when many consumers are cutting back on retail spending, retailers have good reason to resort to heavy discounting to appease bargain hunters. But price reductions aren’t the only answer. Lowering prices is an effective tactic for drawing in customers, but it doesn’t necessarily give customers a reason to keep coming back; and it ignores the ongoing necessity to meet customers’ expectations for what your brand represents and deliver on what most matters to them—to say nothing of what differentiates your store from your competitors.

Now more than ever, what matters to customers is value. Value means more than just a good deal; it refers to a customer’s sense of satisfaction that their purchase provides a host of benefits that transcends the purchase price. Those benefits can range from those shoppers derive from the use of the product, to their experience in the store, to their engagement with the brand’s reputation, to the post-purchase interactions with the retailer, and support they receive from the brand.

Retailers should keep their sights on delivering higher value to customers. There’s always a trade-off between cost and benefit, but the trade-off becomes less significant when a purchase brings satisfaction grounded in an incontrovertibly high level of perceived value—accompanied by a heightened willingness to pay more.

In a recent New York Times article, David Silverman, a retail analyst at Fitch Ratings, said that retailers – whether they sell lunch bowls, sandals, or garden tools– must be attuned to customers’ underlying desires. “These companies don’t have to race to being the lowest-price provider, because they have other things that they’re offering that the consumer wants.”

What are those “other things?” And, aside from meeting consumers’ basic expectations such as assuring product quality, what can retail brands do to create value for retail shoppers?

5 Ways to Heighten Value for Your Customers

1. Strengthen Loyalty Programs

According to Deloitte’s 2024 U.S. Retail Industry Outlook report, as reported on chainstoreage.com, nearly two-thirds of consumers belong to between one and five loyalty programs, but membership usage is sparse. To convert members to regular users, explore innovative efforts to enhance your image and reputation through co-branding and data monetization.

Personalizing offers is a very effective way to keep customers engaged with your brand. In a recent MyTotalRetail blog, the author suggests brands roll out “identity-based offers” for specific segments of customers. Rather than resorting to store-wide discounts, retailers and brands can create an aura of exclusivity by creating special promotions for these customers.

2. Enhance In-Store Experiences

In Deloitte’s 2024 Retail Industry Outlook report, 75% of customers surveyed said they are more loyal to stores that show consistent customer service and experiences. From the moment they walk in the door, opportunities abound to delight retail brick-and-mortar shoppers. Do your customers feel cared for as they browse? Are brand-knowledgeable staff on hand? Is product information readily available through virtual brand experts, self-service kiosks or scannable product shelf tags? Do customers find your return and exchange processes easy and fast? Do in-store customers find the experience special, memorable, or unique? These questions provide food for thought in developing a successful customer experience strategy.

Start by analyzing sales data, assessing customer desires, and consistently responding to them so every visit to their store leaves them not just satisfied but excited to come back again.

5. Create a Sense of Community

The customer experience doesn’t end when shoppers leave the store. It’s just the beginning. Customer retention and brand loyalty depend on developing long-term relationships—ones that can be nourished by creating a sense of community. Increasingly, and perhaps partly as a rebellion against the pandemic’s forced isolation, people are seeking closer connections with family, friends, and like-minded people. Consider creating a user-friendly, welcoming, online social forum where shoppers can share their personal observations of and experiences with a brand, ask questions about products, and learn more from others in the community. The forum invites an ongoing conversation between customers and brands and gives retailers the opportunity to capture important insights about their target customers. You may be surprised at how many positive changes can be made based on the ideas and suggestions shared in such a community.

Create Moments of Goodness

Whether your customer leaves the store with one item or multiple bags of a plethora of purchases, do what you can to improve their level of satisfaction. They will be more likely to share their happy experience with their friends and family—and return to shop with you again.

In a 2024 blog, Amber Murayi, The Hershey Company’s Vice President, Strategy, wrote, “While we can’t ease all the stresses our consumers might face, we hope that candy and snack lovers around the world are able to enjoy more moments of goodness regardless of how or where they shop.” If Hershey’s success is any indication, creating moments of goodness goes a long way to delivering the kind of value shoppers are looking for.

Read about how The Hershey Company relies on MarketSource to deliver consistent moments of goodness.