Customer First: Meeting Customer Needs in a Volatile Economy

In today's ever-changing business environment, the future is bright for those ready to embrace change and to accept that there will be pressures and they will become more intense, more layered, and more sustained.

While it is not necessary for businesses to change every time a new trend takes hold, burying one's head in the sand is not a solution either.

Customers on their end will face difficulties when pressures arise, pressures that can undermine business stability. One of the major threats faced by businesses isn't slow customer drift or weak branding; it's the violent unpredictability of retail behavior caused by sudden economic shock. Businesses are now operating in an environment where customer spending can collapse without warning, and most are unprepared.

Business practices need to be aligned with values to prepare the groundwork against multiple potential challenges. This need has been proven when retail data across African SMEs was collected, showing one month of strong sales can be followed by a sharp drop due to inflation, currency swings, debt burdens, tariffs, or extreme weather. 

The journey through these challenges underscores the indispensable role of strategic thinking to come up with solutions as customers are responding faster to these pressures than ever before. From shrinking basket sizes to delaying purchases, abandoning brands, and retreating into essentials, it isn't preference; it's pressure. What will businesses do when the customer base disappears, when they tighten their wallet or shift buying overnight?

Reports from The National Bureau of Statistics revealed the inflation situation in Nigeria and why weak consumer spending will likely persist in 2025. With some states still experiencing a heightened impact of pressures than others due to inflation, overall inflation remains elevated. High core inflation, currently at 22.28%, combined with a tight monetary policy at a 27.5% interest rate, continues to constrain discretionary spending. Moreover, oil price volatility at $68/barrel and infrastructural deficits estimated at $100 billion annually by the African Development Bank (AfDB) remain a major obstacle to sustainable development, and similar things are at play in other neighboring countries.

Similarly, another by the Africa Development Bank Group, Africa Economic Outlook, reported global tariff hikes in April 2025, revealing the increase in imported goods. 

Businesses have had to suffer due to surging import costs driven by currency depreciation. The situation has worsened with the U.S. announcing a 25% tariff on vehicle imports, especially affecting South Africa and Nigeria. This policy, while aimed at vehicles entering the U.S., could significantly impact Nigeria's auto market, which heavily relies on American used car exports. The price of vehicles in Nigeria has already increased nearly 400% over the past two years, making car ownership increasingly unaffordable while local production remains limited. Now you know why the vehicle purchase is now more expensive than before.

Higher prices for vehicles and appliances strain customer budgets, reducing the demand for small retailers reliant on imported inventory. When this happens, customers face higher prices for durable goods, delaying purchases or opting for secondhand alternatives, which hurts small businesses sales.

Additionally, a recent report by the World Meteorological Organization, State of the Climate in Africa, revealed the escalating threat, highlighting Africa as the most vulnerable to climate change.

The continent's exposure to extreme weather and climate events is exacerbated by a rapidly growing population, under-resourced infrastructure, and limited adaptive capacity. 

Furthermore, weather and climate information and services have not fully utilized effective decision-making for national adaptation strategies, disaster management, and planning. The result? This has caused over 4.7 million victims, with over 600,000 displaced in Nigeria and 700,000 impacted in East Africa, disrupting transportation and access to markets and services. This has given a heavy blow to losing up to 5% GDP because of climate extremes, with adaptation costs rising to $30 billion to $50 billion.

These reports clearly reveal that no market is immune to disruption; businesses need to prioritize making contingency plans and disaster preparedness plans.

You won't know what might bring about disruption to your supply chain. It might occur due to trade tensions, a global pandemic, economic downturns, regulatory changes, or a natural disaster; having a plan in place to deal with it appropriately will help when such a time arrives. 

While adapting to expectations plays a major role in sustainability, adapting to disruption and keeping your finances liquid, lean, and shock ready cannot be overemphasized. When these challenges arise, be ready to:

1. Implement and optimize.

Focus on the improvement that the market will demand and experiment with pricing and new marketing strategies.

- Build trust with promotion

- Offer finance options

- Partnership that will aid accessibility and visibility

2. Embrace Flexibility.

3. Practice candid communication. 

Helps to build trust when external factors like regulations or supply chain issues arise, promoting strong customer relationships, which is good for business.

4. Develop worst case scenarios. 

5. Invest in human capital. 

6. Scenario planning. 

7. Establish a risk management plan.

8. Lean into company culture and core values. 

Don't lose sight of what makes your business unique and strong trying to pivot to meeting the needs of the customers, then double down on it. It shows you are not short-changing your core values by providing consistency during difficult times.

Some people feel the rain, others get wet, a shift that causes interference can catch you unawares. Instead, build a system that thrives in uncertainty, use data to stay responsive, stock like the future is uncertain, and prepare not just to sell but to serve when the world becomes unpredictable. Until then you are ready to navigate the complexities of unpredictability with confidence and insight.