With the recent announcement that the UK is heading towards a period of deflation, the worry is that consumer confidence will dip further. The fear of businesses is that the public become even more reluctant to make non-essential purchases, especially when the costs of goods are continuing to fall.

According to the Office for National Statistics, the Consumer Price Index was 3.2 per cent in February 2009, up from 3.0 per cent in January 2009. Retail Prices Index (RPI) inflation slowed to 0.0 per cent in February, down from 0.1 per cent in January.

In an already beleaguered market it’s hard to believe that things can get any worse, as surely people have already changed their spending habits as much as they are willing to or can do? But then in a bid to learn from history we have to look at the unfortunately lengthy deflationary period Japan suffered during the 90s and brace ourselves for what could be a long period of deflated consumer confidence. Ultimately though, only time will show us how it will all pan out, so all businesses can do is optimise every selling opportunity.

The Rocket Marketing Group offers a range of reward programmes developed to help businesses drive repeat business, promote brand loyalty and improve consumer confidence, which are important elements for optimising every selling opportunity in hard times. It is completely free for businesses to be featured in one of the reward programme brochures, websites and seasonal newsletters, when they offer an exclusive discount for club members. Membership numbers for The Rocket Marketing Group’s reward programmes have soared in recent years to an ever growing total of 300,000 people, so there is a large base of customers for businesses to engage with.

With a permanent sale season on the high street and online sites such as MyVoucherCodes.co.uk and MoneySavingExpert.com, the recession has driven consumers to become sale savvy and expect a discount whenever they spend money.

MoneysSavingExpert.com had only a 1,000 recipient mailing list back in 2003 and now it receives 15 million visits per month, with a 3 million person weekly e-mail list.

www.quantcast.com reported that MyVoucherCodes.co.uk receives approx 60,000 visitors per month, which is 4% up in the last 3 months according to Alexa – www.alexa.com

As consumers hold companies to ransom, unwilling to shop without the hint of a discount, how can companies distance themselves from the permanent sale but remain on the ever successful money saving bandwagon?

From a business point of view the danger of the constant sale trend, is the possible deflation of the brand’s value, as the consumer starts to view the sale price as the norm. There is no doubt that sales help in the short-term but they can ultimately be damaging to a brand’s image.

Many businesses have come to realise that offering discounts through loyalty and membership programmes is a more long-term solution that is actually beneficial to the brand’s image; yet still wholeheartedly jumps on the money saving bandwagon. And that is why the popularity of membership and loyalty programmes has soared.

The Rocket Marketing Group has seen membership numbers of its range of loyalty and membership programmes increase dramatically to 120,000 people over the last few years. The benefits for businesses include free marketing through member websites and brochures that reach a huge customer base. All they have to do is give the consumer what they ultimately desire – a discount. By offering consumers a discount in this particular way the offer remains ‘special’, as it’s only offered to a closed group of people; the brand’s image and values remain intact and the customer gets they want.