Leveraging Savings Tech to Boost Small Business Sales in an Inflationary Economy

The current environment has been impacted by inflation on consumers and their limited budgets and increased research related to their purchases. Due to rising business costs, the change in consumer behaviour has made it more difficult for small businesses to grow and adapt to their market. However, there is a growing trend in savings technologies that is available to small businesses and is appearing to both meet consumer needs and have a proven track record of creating incremental sales growth.

The use of digital coupons and AI-driven deal sites has become a major business strategy for small businesses wanting to reach price-sensitive consumers and create long-term loyalty among their customers. The implications of this trend extend beyond mere short-term tactics; it is changing the way that small businesses view customer acquisition, long-term retention and overall revenue growth.

Why Savings Tech Matters in an Inflationary Economy

• Changes in inflation not only affect pricing, but also consumer behaviour. As documented by current market trends, even small price increases can have large negative impacts on discretionary spending levels of consumers. As a result of the increased strain on their personal financial resources, consumers are more selective regarding their purchase options. Thus, the ability to provide value and savings is key to success in this new market.
• In addition to this increased consumer selectivity, there are also new technologies available for small businesses, allowing them to leverage savings tools to differentiate themselves from the competition. Examples of these savings technologies include: personalised coupon offerings, cashback programmes, and deal aggregator sites (which pull together offers from thousands of retail stores) to assist consumers when they are making their final purchasing decisions.
• The positive impact of savings technologies on small business operations is evidenced by three factors: (1) an increase in conversion rates; (2) an increase in customer loyalty; and (3) an increase in the small business' market reach.

How Savings Platforms Drive Real Growth

Buyers looking for savings often turn to Savings Platforms to locate and utilize a number of resources for savings opportunities, and these platforms bring together offers–including coupons, promo codes, and brand-specific deals–for each brand. By bundling savings opportunities together into one location, Savings Platforms please the value-seeking shopper and enhance their ability to compare brands and stores.

In addition to enhancing a shopper's view of the savings available, Savings Platforms are a valuable resource because they use data-driven insights to help the consumer find relevant savings based on their specific needs for purchasing. For example, if a consumer is researching electronics, the Savings Platform will present to them savings opportunities such as coupon codes, cashback offers, or promotional deals that correspond to their history of searching for electronics, giving them a higher likelihood of converting to a paid transaction.

Case Study: Digital Coupons & E-Commerce Sales

Digital couponing is one of the most powerful technologies available today for saving money at small businesses. It provides an immediate incentive to make a purchase now rather than at a later date, and there are many different ways that digital coupons can be delivered to customers. Examples of this are email campaigns, social media and savings platforms, which provide customers with a way to easily find and access the digital coupons.

The use of coupons on saving websites demonstrates how centralising where a user can find digital coupons creates ease of saving for consumers, as well as increasing the amount of visitors doing business with a retailer.

In addition, digital couponing through extending the use of coupons to operate on an online marketplace, or through direct sales via the retailer website, will allow you to reap the following advantages: Immediate increases in sales during holidays and special events, increased likelihood of making a purchase if a coupon is available at the time of purchase, and higher value purchases (greater than average) if the minimum amount is used as a coupon to receive a discount.

Integrating Savings Tech: Best Practices for Small Businesses

Small businesses should follow these tips for optimising the effectiveness of saving technology

1) Personalise Your Deals with Data

Modern savings platforms are able to analyse user behaviour and provide highly relevant deals to customers. By making sure that a business's discount prices relate to what customers are actually interested in, businesses will have greater success with increasing both customer engagement levels and sales.

2) Deliver Your Discounts Across Multiple Channels

Coupons and discounts should not just be available on the business's website; businesses should also make them visible via Email Newsletters, Social Media, and Online Deal Aggregators.

3) Make Sure Your Discounts Do Not Harm Your Profits

While discounts can increase sales, businesses should be aware that they run the risk of decreasing their profits if they offer too many discounts. A good way to balance the benefits of Discounts is to strategically create a tiered Discount Structure i.e. When I spend $50 I will receive 15% off that purchase. This incentivises larger purchase amounts, while still protecting a business's profit margins.

4) Track Performance Metrics Related To Savings Promotions

Track conversion rates, customer acquisition costs, and repeat purchase rates tied to savings campaigns. Clear data helps refine future promotions.

The Future of Savings Tech and Small Business Success

Inflation drives changing Spending habits, and Savers Technology is going to continue to play a large role in the growth of small businesses. Originally viewed as a cost-savings tool for consumers, it is now part of a much larger, dynamic sales/marketing plan, as it builds consumer loyalty, increases consumer engagement, and increases brand awareness.

Through Savings Platforms, Digital Couponing and Personalization through Data, small businesses have the ability to grow and expand, no matter how poor the economic climate may currently be.