4 Reasons Companies Are Turning to CX to Create Stability in Economic Downturn
In times of economic downturn, companies face significant challenges in maintaining stable revenue streams and retaining customers. To mitigate these challenges, many businesses are turning to customer experience (CX) as a means of creating stability.
While there is no way of avoiding economic downturns, one way you can get in front of the storm and make sure your business stands strong is by focusing on customer experience (CX). Now, more than ever is the time to listen and act on your customers’ needs.
Below are just a few of the top reasons why companies are turning to CX in economic downturns:
1. Increase Customer Retention Rates
In tough economic times, customers become more selective about where they spend their money. In fact, companies that provide best-in-class customer experiences are 80% more likely to retain customers over the long haul.
Cutting back on customer service resources will likely impact quality and lead to customers leaving your brand. You can save the cost of getting them back or replacing them by continuing to invest in strong customer service. When you invest in UI tools that make it easier for customers to navigate your website independently, you’ll receive fewer calls and emails, which will enable representatives to spend more time serving the people who need further assistance. Companies that provide a superior CX are more likely to retain their existing customers, even when times are tough.
2. Create Market Differentiation
With the differences between products and services narrowing on a daily basis, customer service and customer experience is becoming the main way for companies to fuel growth sustainably and stand out from the competition. Providing exceptional CX can help companies differentiate themselves from their competitors and increase customer satisfaction, which can lead to repeat business and positive word-of-mouth referrals. This can be particularly important during an economic downturn when customers are more likely to be price-sensitive.
3. Prioritize Customer Satisfaction
In tough economic times, customers are more cautious with their spending and more likely to shop around for better deals, and research backs that. According to a recent report published by SugarCRM, 73% of customers agree that the customer experience helps drive their buying decision, and 86% say they will pay more if it means getting a better experience.
But the importance of customer satisfaction stretches beyond just dollars and cents, it’s also about improving and evolving as a business in general. Understanding how your customers feel about their interactions with your brand is the best way to identify weaknesses and areas for improvement. The feedback of your customers is extremely valuable, and if satisfaction levels are low, you’ll know you need to take action ASAP.
4. Cut Back on Costs
In downturns, cost reductions become necessary for organizations in nearly every industry. However, the companies that not only survive the downturn but also emerge stronger will be those that can get leaner and more agile while simultaneously forging deeper customer loyalty and capturing market share.
For example, acquiring new customers costs a lot of resources, money, and time. A business might assume that once they’ve made a sale, their relationship with the customer becomes irrelevant – but it’s easier and cheaper to aim for more sales from an existing customer than it is aiming for brand new customers altogether. You should still aim for new customers, but that should never mean neglecting the customers you do have. Keeping your existing customers happy should always be a priority, and it’s a priority that will pay off in the long run.
CRM and CX: Better Together
Overall, investing in CX during tough economic times can be a smart move for businesses looking to weather the storm and come out on top. CX provides a way for companies to create stability during economic downturns by retaining existing customers, attracting new customers, differentiating themselves from their competitors, and saving costs.
Customer Relationship Management (CRM) has emerged as a top solution for companies looking to make a customer-first transformation. And the best way to weather your storm is by relying on an intelligent CRM platform to help you streamline and automate the workload your people, processes, and data carries for your organization.
Want to learn more about how your CRM is the secret key to unlocking improved CX? Take our 10-minute assessment to evaluate your company’s current state of customer experience and reveal what areas you should focus on along with prescriptive next steps!
