With inflation rising, many UK companies are in for a rocky few months, with experts predicting that consumers will begin to tighten their purse strings. Field marketing agency Credico UK has investigated how brands can sustain revenue during this time.
The Bank of England is warning of a significant consumer spending squeeze, which could hit brands hard as the uncertainty of Brexit continues to disrupt business confidence.
In a recent statement, the Bank of England’s Governor Mark Carney warned that wages are unlikely to keep up with prices for the remainder of 2017, and while he was upbeat looking at the financial forecast beyond 2017, the coming seven months could be trying times for both businesses and consumers.
The governor’s statement comes after the release of the Bank of England’s Quarterly Inflation Report, which raised its forecast for inflation to 2.8%, a 0.4% increase from the previous report published in February.
The Bank of England also confirmed that the UK’s rate of economic growth is also slowing – falling from 2% to 1.9%
Leading field marketing agency Credico UK believes that both consumers and businesses have many factors to contend with which have significantly contributed to this predicted spending squeeze. With many still reeling from Brexit, the announcement of the snap election and the resulting fall the pound – which is currently trading at around $1.29, 12% lower than before last year’s referendum it’s no wonder that consumers and businesses are facing financial woes.
However, for UK brands that are already facing challenges regarding their future of trading in the EU, the news of a decrease in consumer spending while highly unwelcome, could bring with it an opportunity to change their marketing tactics. Credico UK believes that in this squeeze, consumers are going to need more support when making purchase decisions and are going to be more particular about where they spend their money. As such, the agency believes now is the ideal time for brands to ramp up their face to face marketing and offer a more engaging and immersive brand experience.
Credico UK believes that face to face marketing is a crucial source of support to consumers – offering them a platform from which to really connect with brands and learn more about how a product or service could add value to their lives. Face to face promotes individuality and offers consumers a personalised service which fully addresses their unique needs.
Credico UK is confident that in the current climate, investing in face to face marketing will help brands to secure customer loyalty and drive sales, despite the predicted spending squeeze.
With a network spanning the UK and Ireland, Credico UK is well established to provide outsourced, face to face field marketing solutions to brands looking to rapidly increase their ROI, market reach and customer acquisitions. Working with some of the UK’s biggest brands in the telecommunications, charity and financial sectors the agency has seen first-hand the difference in- person marketing can make to a brand’s bottom line.