Oct 8, 2024
As Canadian consumers face growing economic uncertainty, small businesses are finding it harder to attract customers. With inflation driving up the cost of goods and services, and household spending tightening, many Canadians are dining out less and reducing non-essential purchases. A recent study showed that Canadians are spending 17% less on dining out than in previous years (The Gain Blog). This shift in consumer behavior makes it crucial for small businesses, especially in retail and hospitality, to find creative ways to engage their customers and drive traffic.
The Economic Landscape in Canada
The current economic landscape has placed significant pressure on consumers and businesses alike. With the cost of living rising, more Canadians are focused on cutting discretionary spending. A 2024 survey by Deloitte revealed that 72% of Canadians have changed their purchasing habits due to inflation, favoring discounts and deals over full-priced items (The Gain Blog).
Additionally, a report from Restaurants Canada found that 49% of Canadians are opting for cheaper dining options, with many reducing the frequency of eating out altogether (AuthoredUp). This environment has created an urgent need for small businesses, particularly in the food and beverage industry, to think strategically about how to offer value and keep customers coming through the door.
Why Deals Matter More Than Ever
With customers becoming more selective about where they spend their money, businesses need to present compelling reasons for them to choose their products or services. Deals are an effective way to do this, as they address consumers' desire for savings while offering businesses a tool to boost engagement. Some key strategies for small businesses to consider include:
Offer Targeted Discounts
Creating deals that cater to specific customer segments—such as first-time customers, locals, or returning patrons—can help attract those most likely to engage. Personalizing these offers through customer data or behavioral trends increases the likelihood of conversion.Create Bundled Offers
Many consumers feel they are getting more value when purchasing bundles. For instance, a restaurant offering a set menu for a discounted price, or a retail store offering multiple products at a reduced rate, helps customers feel they are maximizing their spending.Highlight Limited-Time Promotions
In today’s economy, consumers are more likely to act on urgency. Limited-time offers and flash sales create a sense of FOMO (fear of missing out) that drives immediate action, especially if tied to local events, holidays, or community celebrations.Use Seasonal and Localized Deals
Crafting offers around Canadian holidays, like Canada Day or Thanksgiving, and tapping into local tastes and trends, creates relevance and encourages community engagement. Local consumers are more likely to respond to promotions that feel tailored to their area.
Why Small Businesses Can’t Afford to Skip Deals
Given the economic challenges, small businesses must be proactive in adapting their approach to customer engagement. Deals help businesses stand out in a crowded marketplace and foster loyalty during times when consumers are price-conscious.
According to a 2024 survey by the Bank of Canada, small businesses that offer regular discounts or special promotions have seen a 15% higher customer retention rate compared to those that do not (BrandWell). In difficult economic times, attracting even a small increase in customer visits or repeat business can make a significant difference.
How to Get Started
In this challenging economic climate, finding ways to engage customers with compelling offers is essential for business survival. One effective solution is partnering with platforms that help local businesses attract new customers through customized deals. Host, for instance, offers an easy-to-use platform where businesses can create personalized deals, track their effectiveness, and connect with local consumers looking for savings.
Host takes the guesswork out of promotions and tailor offers to their community, driving foot traffic and sales even during economic downturns. With its user-friendly interface and focus on local businesses, Host helps merchants navigate these tough times while staying connected to their customers. Join now for free, forever!
