Reasons to Prioritize CX in an Economic Downturn


    The quality of a company’s CX does indeed influence its ability to successfully weather an economic downturn.

    With a recession looming, companies make drastic moves to sustain themselves by laying off employees, restructuring, and removing products. Many studies revealed that

    great customer experience drives better financial performance, since existing loyal customers who stick around longer are tend to less price sensitive and advocate the brand credibility to the new customers for the company.

    Additionally, a great customer experience (CX) helps control, if not reduce expenses, as less needs to be spent on new business acquisitions and the cost to serve customers reduces as fewer complaints put less stress on a company’s operating infrastructure.

    In the long term, great customer service is less expensive

    Earlier, customer service was considered the essential cost of doing business rather than a revenue opportunity that is always open for deduction whenever economic downturns happens . Maintaining good customer service as it influences the repeated customer rate. Therefore, cutting back on customer service resources impacts quality, leading customers to leave the brand. By continuing business with better customer service, the cost that is expected to be spent on retaining the lost customers can be saved or could be invested in strong customer service.

    Also Read: Coronavirus and Economic Downturn – Consumer Sentiment Is Softening for Local Businesses

    Customer service doesn’t only refer to customer calls. A report on Customers: opinion on self-service portal usage by brands U.S.& worldwide 2018 by Statista confirmed that 88% of buyers expect enterprises to offer an online self-service portal. By investing in UI tools make it easy for the customer to redirect to the company’s website independently which will result in fewer calls and emails enabling business representatives to serve customers with more time who needs further assistance.

    Right investments, stronger image

    At the time of recession, the obvious step that companies take is cost cutting instinctively even in the customer experience. But to survive in the recession only doing cost cutting is not a solution. Strategically assessing the processes where investment could be beneficial for the long term, will create a better image of the company. Even in economic downturns, investing right in customer experience is worth it.

     Balancing between the customer and business expenses

    At a time of recession, people are less likely to spend money, The survey As inflation bites and America’s mood darkens, higher-income consumers are cutting back, too by CNBC and Momentive, Americans across income brackets started cutting back their spending, particularly the luxuries expense. One of the ways to mitigate this pullback, enterprises can keep the balance between the business and customer expenses by ensuring the buying process is smooth as possible. A strong customer experience navigating them expediently from browsing to confirmed buying demonstrates that the buying journey was not exhausting.

    Also Read: Optimizing Brand Safety in Today’s Ever-Evolving Landscape

    Earn and keep loyal customers

    Gaining new customers during a recession is harder than retaining the existing customers as customers would buy from the brand they trust and have used their products or services instead of risking their spending on some new brands. Additionally, new customers acquire more costs than retaining the existing customers. Therefore, keeping existing customers happy and loyal during an economic downturn would work best for the business. In the future, these customers’ loyalty would sustain the business and would become the advocates of business loyalty and credibility.

    Positive CX encourages referrals

    Loyal consumers can help in the acquisition of new clients in addition to generating recurrent revenue. Customer recommendations are far more likely to be believed by consumers than any other form of advertising. They might recognize that person directly or via online reviews. Therefore, these recommendations could be driven by delivering great customer experiences.

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    Nisha Sharma
    Nisha Sharma- Keeping eyes on facts Tech Journalist at OnDot Media, Nisha Sharma, helps businesses with her content expertise in business marketing to enable their business with Smarter marketing decisions to enhance brand awareness. With 3+ years of experience and expertise in content writing, content management, intranets, marketing technologies, and customer experience, Nisha has put her hands on content strategy and social media marketing. She has also worked for the News industry. She has worked for an Art-tech company and explored the B2B industry. Her writings include customer engagement, Marketing Automation, Analytics, and measurement are her areas of interest. Nisha understands the value of customers in the business; thus, she always writes and adds every possible fact and marketing strategy to help readers in Customer journey mapping, personalization, and targeting and increase Marketing ROI. With her background crossing technology, emergent business trends, and internal and external communications, Nisha focuses on working with OnDot on its publication to bridge leadership, business process, and technology acquisition and adoption. Nisha has done post-graduation in journalism and possesses a sharp eye for journalistic precision as well as strong conversational skills. In order to give her readers the most current and insightful content possible, she incorporates her in-depth industry expertise into every article she writes.