Inflation’s Impact on Customers and Brands

Inflation’s Impact on Customers and Brands

Inflated expectations present a conundrum for brands considering whether to pass costs on to customers or absorb the impact on their margins. Furthermore, the war in Ukraine will almost definitely raise costs much further.

As inflation rises, businesses can expect an increase in demand for excellent customer service and value for money. Customers are nearly twice as sympathetic to small businesses raising their prices as they are to large corporations.

Customers are more willing to pay more and accept inflation if they have a positive customer experience. Reducing investments in experience and service to offset rising prices is a sure way to alienate both current and new customers.