Winning on service in an uncertain economy
Joiners June 2023
In an uncertain economy, companies must focus on delivering exceptional customer service to build customer loyalty and insulate themselves from any economic backlash. The experiences of customers play a pivotal role in their continued allegiance to a company and their likelihood of providing referrals and positive reviews.
It is crucial for companies to measure and monitor leading indicators of value change and to focus on customer experience metrics to ensure the delivery of high-quality service that drives the decision to purchase. Companies must listen and learn from customers to enhance their experience and create “switching costs” (measured in time and effort) that lessen the likelihood of defection to a competitor. By doing so, companies can position themselves well for the turnaround when it arrives and be better prepared for the next uncertain economy.
What are Customer Experience Metrics?
In general, what do customers want regarding their service experience? The process of identifying and selecting the right customer experience metrics begins with understanding all the interactions within the customer journey that occur, perhaps captured in the form of a touch map (google that). With this information in hand, a company can begin to prioritize the touchpoints that most significantly impact the customer experience in total. Choose a small metrics set that captures the company’s performance for each critical interaction. These metrics can become the basis of a customer experience scorecard, allowing the company to monitor and track progress toward delivering a superior experience.
Retain & grow talent, invest in engagement and deal with poor performance.
Now is always the best time to invest in the “right people”, to start evaluating who is “on the bus” has the company’s back and is always willing and able to do the right thing for clients and the team. If you have people who are disengaged and not performing, you may need to ask yourself if they should be on or off the bus? Listen to your gut, then get the process underway. If things are uncertain, don’t carry low performers & distractions and create a culture of average, where your best people cannot be their best.
“Customers have memories. Their service experience today, if positive, will enhance their future value to your company, a critical consideration in an uncertain economy.”
— Don Peppers, Founding Partner, Peppers & Rogers Group
Don’t Panic; we only need to retain current volumes or aim for moderate growth.
Most Joinery companies are small to medium and only need a minimal market share. To maintain or grow this a little, you must provide better value & service to your clients, get to know them, and understand what creates value for them. It’s not lower prices, don’t get caught by thinking that it is. If a client says price is the most important thing, they are likely not your best client or one you want to keep for the long term.
Do more for your customers.
- Are there other areas of the project where you could provide products?
- Is there value in your design or technical advice you can charge for?
- Can you introduce other trades or service providers and get referral fees or mutual referrals?
In summary, the uncertain economy won’t last forever, but strong customer relationships will endure. Companies can make smart decisions by recognizing customers as the best “low-cost growth” option, monitoring lifetime value change indicators, focusing on customer experience metrics, and learning from customer feedback. By acting on these principles, companies can deliver superior customer experiences and better prepare for the next uncertain economy.
“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
― Maya Angelou
Ian Featherstone is a cabinetmaker, machinist, business advisor, mentor and leadership coach, and the owner of Glass Half Full. He specialises in the construction industry, particularly the joinery & cabinetry sector. For more information or to find out how you can move your team forward, please visit www.glasshalffull.co.nz