Customer Experience in Challenging Times

Challenging economic times require challenging the status quo.  Even when times are tough there are many low-cost opportunities to build, and nurture positive customer relationships that can help an organization accelerate through, and uphold the brand’s reputation.

When faced with an economic downturn many organizations resort to panic and reactive strategies.  Taking a reactive approach can cause a management team to frame action through a negative lens, and place focus on what’s wrong, instead of what’s right.

The goal becomes survival at any cost — as long as it doesn’t cost any money. Many organizations stray from logic by reducing headcount, cutting back on services, and eliminating customer perks. In an attempt to drive costs down, they drive customers to the competition.

These types of actions exacerbate the issue, and create a vicious circle of compounding problems.  Service quality drops, and customer satisfaction takes a dive.  As customer complaints increase, the cost and resources to handle the complaints increase as well.  Negative word-of-mouth advertising impacts sales, and that leads to additional costs in marketing, and customer retention.

Challenging times impact the employee experience as well.  Organizational changes affect employee morale, productivity, and confidence in the organization that in turn affects the customers’ experience.  Frustration can lead to employee attrition that drive up costs associated with hiring and training replacements.

In the preface of his book The Loyalty Effect author Frederick F. Reichheld states, “the fact across a wide range of industries is that a 5 percent improvement in customer retention rates will yield a 25 to 100 percent increase in profits.”  The key word being retention!  It costs less to retain customers, than to replace them.

In challenging times, think simple, but simple with an impact.  You don’t have to drive up costs to WOW a customer; in fact, it’s just the opposite.  Most customers understand the challenges that organizations face, but they still want value for their money, and to feel appreciated.

The goal is to let customers know that you appreciate and value their business.  A sincere “thank you” from a customer service representative, an employee that goes that “extra mile” to provide outstanding service, a small token of appreciation in the form of a note, an email, phone call, or text message. Many times it’s the smallest gestures that make the greatest impact, and help to enhance customer loyalty.

Imagine receiving a note, email, or text message from your mortgage, credit card, or telephone provider company saying something like:  “We want to take this opportunity to thank you for your continued support,” or “We know that these are challenging times, and we want to thank you for paying your bills on time.”  For a minimal investment, you would get a maximum return on customer perception and good will.  That’s advertising you can’t buy!

The good new is better days are ahead, so go ahead and challenge the status quo! Take a challenge as an opportunity to differentiate yourself by surprising your customers, and building your brand.   Not only will it help you get through the leaner times, it will help you build a brighter future.