UCLA’s Anderson School of Management recently hosted a seminar for executives with an unusual message: A crisis is a terrible thing to waste. With consumer spending at 1997 levels, many companies are struggling to find easy ways to cut costs and boost productivity. Yet the speakers at UCLA’s conference urged executives to take advantage of the economic crisis as an opportunity to improve performance as well. In addition to strengthening balance sheets, executives at the seminar were advised to hold onto key employees, let go of unprofitable business lines, and grab up new investment opportunities– in other words, work smarter, not harder. As finance professor Antonio Bernado said, “If you invest now when your peers and competitors are waiting on the sidelines, you can be a leader in your industry when the recovery does come.”
Here are three more areas to consider if you’re looking for ways to work smarter in today’s volatile business climate.
Reward Your Most Engaged Customers For Bringing In New Business.
Looking for a treasure trove of hidden value in your company’s current assets? Look no further than your own customer list. PeopleMetrics has found that highly Engaged Customers will passionately advocate for your brand. Can you offer an additional incentive to motivate your best customers to bring in their colleagues, family and friends? Before you roll your eyes at the idea of spending more money in sales, consider how much you spend in-house to bring in new customers. If you can pass that job on to your customers, there’s a good chance you can save money– and attract more Engaged Customers. Customers attained through positive word-of-mouth recommendations are more likely to be engaged and more prone to forgive your organization for any services failures if they do occur.
Present a Passionate, Friendly Face.
Even if you can’t cut your customers’ costs, you can keep them coming back with exceptional customer service. When Engaged Employees smile, sympathize, anticipate customers’ needs, and move quickly to solve problems, customers are more likely to feel an emotional connection to a company– and PeopleMetrics has found that emotional connections attract Engaged Customers who will stick around for the long haul. If you’re not sure how to motivate your employees to provide stellar service, consider implementing an employee feedback program. (PeopleMetrics can help– check out our section on Employee Engagement.) As a bonus, keeping your employees emotionally connected to your company will also reduce recruiting costs, thanks to lower turnover rates.
Strive to Maintain Marketing Budgets
In lackluster economies, it’s tempting to trim marketing budgets. Why market a brand when consumer demand is so low? Because some day, consumers will have expendable income, and marketing during the recession will influence what they’ll buy. Coke’s worldwide dominance in the beverage industry can be traced to crucial advertising during a historic financial slump: World War II. Despite the fact that both Pepsi and Coca-Cola had limited distribution and demand, Coca-Cola advertisements continued to appear. Pepsi slashed advertising budgets during the war and could not maintain a steady presence. Once the war ended, Coca-Cola’s consistency was rewarded: Coke dominated the market.
During economic downturns it is more important than ever to keep your customers front and center. Gathering and listening to their feedback is essential – doing so will allow your company to spot new opportunities for growth and innovation.
Source for UCLA seminar: The Los Angeles Business Journal.
Tags: budgeting, cutting costs, recession business, rewarding customers, satisfying employees, trade shows
I wanted to thank you for this brilliant read!! I definitely loved every little bit of it. I bookmarked your site to see the new stuff you post.