The World Bank projects a 3.3% growth in GDP for 2016. But the projection for high income countries is lower, with the US at 2.8% and Europe at 1.8%. When the economy softens, businesses typically respond in two ways:

  1. By cutting costs
  2. By seizing the opportunity to gain competitive market share.

The one thing businesses must not do is short-change their focus on customers. 

A 2015 study by Forrester Research shows that companies that deliver excellent customer experience have a high correlation with likelihood to recommend and consider the company for another purchase. They also have a much lower likelihood of switching—key when competitors lower their prices or introduce new offers to lure customers away. What’s really interesting in Forrester’s research is that many companies are putting a renewed focus on customer experience with various indices and ratings skewing higher. Most importantly, Forrester cites research demonstrating the strong relationship between share holder value and actual revenue. 

    Market Force’s research confirms that emphasizing the customer experience impacts loyalty and revenue. Across dozens of statistical models we have built for clients in the restaurant, retail, grocery, wireless, and petro-convenience spaces, we’ve found that high satisfaction rates result in 2x to 12x higher recommendation ratings. In addition, we’ve found that a focus on operational excellence and customer experience has a positive and significant impact on revenue results like YoY same store sales (restaurant), conversion rates (retail), household spend (grocery) and volume of fuel sold (petro-convenience). 

    The strong relationship between CX and financials makes a compelling argument for continuing your investment in customer experience. Continue measuring so you understand how every function and every location delivers to customers. Increase the visibility of those measures, and make sure every employee understands his or her impact on the customer experience and is committed to excellence. Demand action with commitment from managers to addressing issues and improving scores. Model the relationship between CX and financials to show ROI and build the business case for keeping your program intact. Your investment will help your business thrive in a slowing economy. 

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