![]() Cut costs by preempting avoidable customer inquiries.Do what you can to polish your customer experience now and give people a reason to keep coming back in the future. Take advantage of that before people start to rein in their spending. That means companies continue to have many opportunities to shape customer impressions. ![]() We're not in a recession yet, and both consumer and business spending remains strong. So how can a CEO or business owner capitalize on customer experience to shield their organization from the worst effects of the next recession? Here are three strategies to employ: But what the Watermark analysis suggests is that if cost-cutting starts to undermine the quality of a company's customer experience, then it could very well dim the organization's post-recession prospects rather than elevate them. When faced with the prospect of a recession, many business leaders' knee-jerk reaction is to cut expenses-curtail travel, freeze hiring, postpone investments, etc. That's likely a consequence of how customer behavior is shaped by great product and service experiences: Businesses offering such experiences become one of the last places people cut back (or seek less expensive alternatives), and one of the first places to which they return when their budgets become less constrained. In addition, a great customer experience helps control, if not reduce expenses, as less needs to be spent on new business acquisition (due to all those referrals and repeat business), and the cost to serve customers declines as fewer complaints put less stress on a company's operating infrastructure.īut there are additional conclusions to be drawn when looking at Watermark's CX ROI data for the Great Recession-foremost among them, that the quality of a company’s customer experience does indeed influence its ability to successfully weather an economic downturn.ĬX-leading firms appear to be cushioned from the most severe impacts of a recession, and they seem to bounce back faster when a recovery takes hold. It's been well documented through many studies (not just Watermark's) that a great customer experience fuels financial performance: It helps raise revenues, since loyal customers stick around longer, they tend to be less price sensitive, they entertain ideas for other products and services, and they refer entirely new customers to your business. Whereas the broader market and the CX-lagging companies lost significant market value during the contraction, the CX-leading ones actually notched positive shareholder returns. While CX-leading companies weren’t immune from the effects of the 2007-2009 Great Recession, they clearly fared better than other firms.
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