MIND YOUR BUSINESS
they're at the checkout counter (meaning they are buying less or trading down for less expensive items, like those ramen noodles).
Where's the money flowing?
Roughly 40% of all incremental spending in the first quarter went toward experiences rather than goods. For example, people are spending on dining out and lodging away from home, plus fun activities like sporting events, traveling for spring break or holidays - or to watch the solar eclipse. In fact, compared to 2023, 28% of every incremental dollar that consumers are pouring into the small business ecosystem is going to restaurants.
How data can spur growth
Small businesses that have access to actionable insights are in a position to make better business decisions. As inflation impacts the economy, the Fiserv Small Business Index reveals how consumer spending across small businesses is changing in response.
Armed with that information, savvy business owners can make strategic decisions regarding how and what they're selling, allowing them to better serve customers and capture a bigger share of wallet. Here are some examples of those
kinds of decisions:
Offer multiple payment methods
Different age groups prefer to pay in different ways. Make it easy for all your customers to buy by allowing them to pay the way they prefer, whether that's via credit card, debit card, mobile wallet, cash, check, bank or even gift card. Popular point-of-sale platforms like Clover from Fiserv make it easy for small businesses to provide customers with a range of payment options and a seamless shopping experience.
Promote more budget-friendly options
Although consumer spending is resilient, what consumers are buying is changing. As inflation pushes the cost of goods higher, consumers seek to get more bang for their buck. Businesses looking to combat inflationary impacts on consumers should consider how to drive their own sales through budget-friendly offers: discounts, bonuses and other promotions - or by selling less expensive alternatives to high-priced goods.
Create appealing experiences
Businesses that sell experiences, notably in the restaurant, travel and leisure spaces, are reaping the rewards of shoppers who are increasingly buying things to do instead of physical goods. Small businesses can capitalize on this trend by creating engaging experiences that make sense for their particular business. For example, an art gallery can host pottery classes, an Italian deli can offer pasta-making lessons, or your business could provide a membership program letting customers tap into special events.
Consider local expansion
As a business grows, opening a new
"Roughly 40% of all incremental spending in the first quarter went toward experiences rather than goods."