"What happens when the experience economy meets the recession economy?"
If or when the U.S. hits a recession, the customer experience is going to be very important for any business. People are going to be tighter with their money. That means you have to step up your game when it comes to providing customer service. You have to maximize every interaction you have with people.
In the retail industry January and February are always slow times. When I was a salesperson at Nordstrom, I knew that every customer that walked through that door had to be greeted and helped. That was a must any day of the year, but during those real slow times, it was a do or don't eat situation. It was a great time to practice my people skills and spend quality time with each customer. If you want to "recession proof" your business, the only thing you must do is improve the customer experience.
Maria,
Excellent point! When the economy is down, the BEST thing you can do is work to improve the customer experience. Why?
1. History shows us that even in the worst of times, people will pay to be entertained and to have experiences that make them feel better about their circumstances. Create an experience that makes your customers feel good about themselves and they will want to come back - tight economy or not.
2. It will take less of your time and money to lavish attention on the customers you already have, rather than work to bring in new customers. Make your current customers feel like stars, and THEY will bring in your new customers.
3. NOW is the BEST time to roll out the red-carpet for your customers. They may be spending less now, but the economy will get better (it always does) and they will remember how good you were to them when times were tough...and come back to spend more!
Funny, customer service initiatives (along with employee morale strategies) are often the first to take a hit during financial hardship. The problem with this strategy is that your reputation for giving poor service (and having disengaged employees) will follow you right into better times, and your business will continue to suffer as a result. NOW is the time to spend on improving the customer experience.
Great insights, as usual, Maria!
Posted by: Donna Cutting | February 11, 2008 5:00 PM | Permalink to Comment