Customer Experience During an Economic Downturn
The most successful businesses have ensured that customer experience be at the forefront of everything they do. There have been many great articles written by CMA Bloggers about the importance of the user experience, and how that can translate into customer loyalty and the recommendation of that product or service to others. Apple is a great example of a company that not only ensures the product is very user friendly, but that the support in their stores and support centres put the customer first. SouthWest Airlines posted another year of profits in 2008 while their competitors have lost money.
Unfortunately the reaction of many companies in an economic downturn is to reduce spending in areas where there is not an immediate payback. Marketing and customer support dollars are cut to boost the bottom line in very difficult times.
Customer experience is more critical in these economic times for two reasons:
One, customers still have money but are are more careful where they spend it. They are going to chose to spend their money on products and services that they feel loyal enough to recommend to others. Getting the share of a smaller purse/wallet means standing out from the rest. A great customer experience will help ensure your business is the first a customer chooses when they are ready to spend their hard earned dollars. You may be going out to restaurants less these days, but you are still going. Instead of going out to 4 restaurants this month you may only chose one. You are going to, therefore, chose the one that provides the best experience and value. That one restaurant will not feel the economic pinch as much as the other three.
Two, the economy will bounce back. Loyalty is gained through great customer experience. Growth is realized when your business is recommended by others. Continuing to provide a great experience during the economic downturn will help ensure that you see exponential growth (compared to competitors) when money is, again, spent more freely.
Air Canada is realizing that customer experience is a priority and have plans in place to improve all aspects of their service. Air Canada has won a service award based on data collected between between August 2006 and June 2007. Many would say they have some work to do to be the best Canadian airline when it comes to customer experience.
A focus on customer experience is critical to the success of a business. Perhaps it is even more critical now than ever to ensure the long term survival and success of your product or service.
