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Economic downturns do not last forever . With a long enough time horizon , you should be able to benefit from the market recovery . Having a robust customer experience strategy is one of the most effective ways to survive an economic recession .
The global economy has weathered many recessions . History clearly shows the value of investing in customer experience during an economic downturn . For example , in the last economic recession , companies that prioritised customer experience saw three times the shareholder returns compared to the companies that did not .
Q . WITH CUSTOMERS MORE PRICE-SENSITIVE AND SELECTIVE IN THEIR PURCHASING OPTIONS , HOW CAN COMPANIES RETAIN THEM IN THESE UNCERTAIN TIMES ?
» As customers feel the pressure of rising inflation , they become more price-sensitive and more selective in their purchasing decision . They weigh more strictly on what ’ s essential and what ’ s not . They are more willing to try new companies that might offer them a more cost-effective option .
To keep these customers , you have to show them the value that only you can provide with your products and services . Organisations that make decisions based on what matters most to their customers consistently outperform competitors who put their focus elsewhere .
Steve Jobs recognised this back in 1997 . When confronted during an Apple developer conference , he said : " You ’ ve got to start with the customer experience and work backward for the technology ”. Fast forward 25 years and Apple is the most valuable company in the world .
Across every industry , digitalisation , globalisation , and the pandemic have increased today ’ s customers ' expectations . Before you know it , customers start leaving without even complaining .
Just like the expectations of our customers , a company ’ s strategy should also adjust to meet the demands of the Experience Economy .
Q . COULD YOU SHARE A FEW TIPS AND IDEAS WITH US FOR COMPANIES THAT ARE INTERESTED IN IMPLEMENTING A CX PROGRAM ?
» CX can help companies in many ways :
• For companies to not just survive but thrive in the recession , they must invest in truly understanding the customer ’ s behaviour and anticipate their needs . This will provide the knowledge they need to design a CX architecture to deliver the most impact with maximum efficiency , rapidly accelerating them out of the downturn .
24 November 2022