No doubt, Covid-19 has shaken the economy. The World Economic Outlook of the International Monetary Fund (IMF) estimates the cumulative loss in world GDP from 2020 to 2021 will reach around US $ 9 trillion.
Greater than the combined value of the German and Japanese economies. The crisis not only disrupts global markets, but also influences people’s lives, needs, priorities and spending behavior.
Under harsh economic conditions, consumers are becoming more sensitive to where and how they spend their money – for business, this creates a new set of challenges.
Consumer centricity, is a term that has been used since the 1960s, but has never been more relevant than in today’s business landscape.
In such an extreme environment, customers want more than just the best offer or the lowest price; they are looking for a reliable business, confidence, and trust in the brand they choose to do business with.
The ultimate goal for businesses that focus on consumers is customer loyalty.
So how can a business predict or adjust to growing customer expectations? It starts by understanding how your company operates and what you need to change to keep your loyal customer base as close as possible.
Here are three ways businesses can adapt by changing post-pandemic customer relationships as reported by Entrepreneurs :
1. Prioritize customer loyalty targets
If growing your customer base is a priority for your current business, take a moment to reflect on the long-term costs of growth, both in terms of reputation and financially, to determine whether it is a sustainable path.
If your business has not considered the immediate or long-term economic impact of the pandemic and how it can affect your business, you should start doing it now.
Research by Forrester shows that new customers can spend five times more to convert than existing customers, showing that it is easier to expand and build on existing loyalty than using a new client base, especially during difficult times.
Don’t be afraid of missing opportunities to grow; instead, think of this crisis as an opportunity to strengthen the fundamental processes and market share that make your business measurable.
2. Focus on operational excellence, but stay customer-centered
Operational excellence is important, but running a business 10 percent better than the previous year is meaningless if you miss the target with your customer base.
Recently, businesses have begun to enter a different mindset that sees customer experience translated through end-to-end processes. For businesses that are truly customer-centered, every decision and ambition has a customer-focused outcome, be it increased experience or long-term sentiment.
3. For precision, use data
In the post-pandemic era, digital marketing and social communication channels are the main key to business, and when used properly, can offer more specific insights about your customer’s behavior.
Utilizing customer data can be as easy as surveying an existing customer base to get actionable input. The more data you have, the more accurate the calculation will be.
Data will allow you to adjust business direction and maintain customer satisfaction, even in a rapidly changing environment, and increase loyalty and retention rates.
By using this adaptation, businesses can get out of crisis with the right fundamentals instead of referring to the old ways that can actually damage the business in the long run.