Companies typically respond to inflation by raising prices, accepting lower margins, or lowering product costs (and often quality). Better decision making based on prior business data, on the other hand, now allows businesses to consider more sophisticated strategic responses to inflation.

From a curiosity to a necessity - Digital Transformation

The use of advanced technology by businesses to improve their business capabilities, operational efficiencies, and, ultimately, customer experiences is referred to as "digital transformation." If your businesses embrace digital transformation in a systematic and timely manner, you will gain benefits that will give them a competitive advantage and help their customers identify the source of their problems during a recession.

For the first time in at least a decade, inflation has become an urgent short-term consideration for almost businesses of all sizes around the world.

Inflation in 2022 is a different story. Business Owners now enjoy a level of market visibility and agility that their predecessors could have hardly imagined even one generation ago

ARTICULATE DIGITAL PORTAL

It’s an ideal time for them to treat inflation as a strategic opportunity rather than a tactical challenge, and to choose from a better set of options. Instead of worrying about how much more to charge their customers, they should devote their resources to figuring out how and why they should be charging them.

Ways To Deal With Inflation

1. Revisit financial goals and current investment portfolio

Innovation is a positive step forward. To innovate your business, you can bundle or unbundle existing products to create new value propositions or expose customers to lower price points for the disaggregated goods and services you wish to purchase. You can use behavioural insights to close price gaps and steer customers toward more profitable offerings. Depending on what you have in their R&D pipelines or how flexible your manufacturing capacity is, you can also introduce less expensive alternatives or, counterintuitively, higher-end products that make the existing product line appear more affordable.

2. Reposition the Brand

Most offerings (Products & Services) are either overpriced or underpriced — in some cases significantly — relative to the value they deliver at any given time. A wave of inflation provides an opportunity for business owners to correct these misalignments in their product positioning and price structure.

3. Replace the Price model

Many companies have already considered adopting new pricing models using Digital Commercial Solutions, drawn by the success of subscriptions and "my-product-as-a-service" models. The immediate need to respond to inflation provides them with a compelling reason to put these plans in place now and avoid making uncertain decisions.