For the small business owner, this change in the consumer mindset has a direct impact on your marketing and business strategies.  It is now more important than ever to pay close attention to your customer’s needs.  Many of the issues that your customers are going to face in this recession are the same: reduced income, increased unemployment, increased expenses, more debt and solutions that don’t meet their immediate needs.

Keeping in mind that consumer demand is comprised of income level, personal preference, and purchase price, let’s take a look at what a small business owner can do for continued business growth and profits.

Other than hiring our customers, which is an unrealistic solution to the problem, as a small business owner, there’s not a whole lot we can do about the diminishing income levels of our customers.

With regard to pricing, there are a few things that small business owners can do to influence consumer demand.  However, downward pricing can create a risk to the bottom line profitability of your business, so the best way to influence consumer demand is through preference.

People may have less to spend and become more frugal, but this doesn’t necessarily mean your customers will gravitate to choosing the product or service with the cheapest price tag.  In fact, value becomes more important during a recession because people are generally looking to get the most bang for their buck as their spending habits become more economical.

In business as in life, challenges arise when immediate needs are not satisfied and solutions are not easily attainable.  If you can satisfy your customers’ immediate needs, solve their personal problems, cater to their preferences and deliver a product that will stand the test of time . . . you’re sure to gain a life long customer regardless of the current economic situation.

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So why wouldn’t you take this same concept of providing solutions to other people’s problems as a way to grow your business?

Pay attention to the feedback you get from visitors to your website, customers and prospects. Complaints are just as important as the praises and if you’re not capitalizing on your customer’s pain points, you’re missing the boat on improving your business and increasing your profits. Gaining insight from your customer’s feedback is equivalent to being handed a Hot New Indemand product or service.

To succeed in business, find out what it is your customers want, and then make it available and overdeliver. As simple as it sounds, so many overlook this natural but effective business strategy. Complaints are opportunities! So pay attention to all and any complaints and feedback you get, don’t take it personally and use it to your advantage. If you can find a way to address a complaint about something that irritates or makes your customers/prospects suffer, you have a brand new area to profit from.

If you’re looking for ways to grow your business, I suggest you encourage your customers and prospects to leave feedback and voice their complaints or concerns when and if they arise. You can do this by asking for comments on your website, giving out an email address, and being available by phone. But, however you decide to make yourself available, be sure to follow up with timely responses, even if it’s just to let them know you received their feedback. No faster way to ruin your business’ reputation then to have non-responsive customer service.

From this day forward, look at customer feedback, good or bad, as an opportunity to grow your business and increase profits.

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