Cost constraints may lead some companies to prioritize downsizing measures over investing in customer experience (CX). However, controlling costs are just one factor influencing business decisions about resource allocation.
Companies that prioritize customer experience may find that it pays off in increased customer loyalty and satisfaction. On the other hand, companies that focus solely on cost-cutting measures may discover that it produces the opposite result.
Ultimately, the balance between cost constraints and investing in customer experience will depend on the company’s specific circumstances and its goals and priorities.
Reasons Businesses Should Prioritize
Providing a positive customer experience can lead to increased customer loyalty. That is especially important during difficult economic times when customers may be more cautious about spending. Gen Zers, for example, will abandon a brand at the first instance of poor customer experiences.
For example, there is a great deal of conversation over Frontier Airlines’ decision to close its call centers, pushing customers to digital self-service channels.
While the effect of that shift may be negligible to younger generations, the move has angered customers who lack access to devices or feel less comfortable with non-voice communication, says CX consultant Peter Ryan, CEO of Ryan Strategic Advisory. He predicts that in 2023, consumers will push enterprises to offer a credible voice-based service option. “Sometimes a customer just needs to speak to someone,” he says.
(Improving customer loyalty is also one reason a Dutch supermarket chain created a “chat checkout lane” for lonely senior adults who want to chat.)
A positive customer experience can also help businesses retain customers, which can be especially important in a challenging economic environment when attracting new customers may be difficult.
Providing a high level of customer service can help businesses build a positive reputation, benefitting new customer acquisition efforts.
Investing in customer experience can also lead to cost savings in the long run, as satisfied customers are less likely to switch to competitors and may be more willing to pay higher prices and offer opportunities for companies to up- and cross-sell goods and services.
Satisfied customers are also more likely to repeat purchases and recommend the business to others, resulting in revenue growth.
Choose CX for Long-term Success
Investing in customer experience can be a valuable strategy for businesses, even in tough economic times. Companies can build a strong foundation for long-term success by prioritizing customer satisfaction, loyalty, and lifetime value (CLTV).
Our latest ebook provides valuable insights into how investing in customer experience can boost customer satisfaction, improve brand reputation, and ultimately increase revenue. Download here.