Low-income consumers face the challenge of meeting day-to-day expenses on a limited budget. The luxury of choice and quality brands is not always an option, and value for money is the main motivator when making a purchase. The same strategy employed for high-income earners -- namely, building and maintaining the right relationships -- is the best way to capture and maintain customer loyalty.
Retailers can offer two-for-one deals on private and generic brands that appeal to the shopper looking for value. The more bargains offered, the more likely value shoppers are to frequent a business and make a purchase. Other successful strategies include loyalty cards that offer rewards and double-coupon savings days. Low-income consumers who are paid by the day often shop on a daily basis; reducing packaging size on products can lower the cost per unit for these consumer while still giving the impression of quality and value for money.
Developing a relationship with low-income consumers and seeking feedback from them via customer surveys can deliver the message that you understand their need for value and are committed to meeting their needs. Communication through online monthly newsletters advertising upcoming sales and discounts, online and mailed coupons, and local media advertising can boost sales among the low-income consumer. Involvement in local community activities can draw attention to your products, and teaming up with other businesses can allow joint promotions that benefit both parties.
Partnering with government and non-governmental organizations can open up avenues and markets that are difficult to reach otherwise. Government agencies and local welfare organization can incorporate your products into their programs and make them visible to the low-income consumer. Financial investment from government-sponsored groups may help a company develop local contacts for resources and raw materials, helping to keep operating costs low and prices down.
According to Rosalind Davidson of the Yale-New Haven Teachers Institute, low-income consumers tend to use neighborhood stores rather than large supermarkets and department stores; some lack communication skills and experience anxiety in talking to sales people. Staying small and hiring local staff that connect well with consumers is appealing, as low-income people tend to prefer to buy from relatives or friends that they know; word-of-mouth recommendations are heavily relied upon, especially in making major purchases. Getting out into the community and meeting people one-on-one personalizes the business-to-customer relationship and provides information as to how best to meet customer's needs.
