Business Environment Overview
The Pandemic Economy has created an environment that has tested businesses to either adapt or perish. The atmosphere has become a quest for the survival of the fittest. On the brighter side, organizations have stepped up and adapted to the crisis in a way that they have worked faster and better than ever before.
During this crisis, companies have been strategic in understanding their focus areas and where to concentrate on the most. From a high-level perspective, we can see that businesses have focused on recovering the sources of their revenues, rebuilding operations, restructuring the organization, and accelerating their digital transformation initiatives. In a way, the pandemic has forced companies to optimize their strategies and harness their core competencies in a hyper-competitive and survival environment.
Need for Customer Focused Strategies
A pivotal and integral strategy to maintain and sustain growth is for businesses to avoid the churn of their existing customers and ensure the quality of delivery can build their trust for future collaborations and referrals. Many organizations, including GAVS, have understood that Customer Experience and Customer Success is consequential for customer retention and brand affinity.
Businesses should realign themselves in the way they look at sales funnels. A large portion of the annual budget is usually allocated towards the top of the funnel activities to acquire more customers. But companies with customer success engraved in their souls, believe in the ideology that the bottom of the funnel feeds the top of the funnel. This strategy results in a self-sustaining and recurring revenue model for the business.
An independent survey conducted by the Customer Service Managers and Professionals Journal has found that companies pay 6x times more to acquire new customers than to keep an existing one. In this pandemic economy, the costs for customer acquisition will be much higher than before as organizations must be very frivolous in their spending. The best step forward is to make sure the companies strive for excellence in their customer experience and deliver measurable value to them. A study conducted by Bain and Company titled “Prescription for Cutting Costs” talks about how increasing customer retention by 5% increases profits from 25%-95%.
The path to a sustainable and high growth business is to adopt customer-centric strategies that yield more value and growth for its customers. Enhancing customer experience should be prime and proper governance must be in place to monitor and gauge strategies. Governance in the world of the customer experience must revolve around identifying and managing resources needed to drive sustained actions, establishing robust procedures to organize processes, and ensuring a framework for stellar delivery.
Scaling to ever-changing customer needs
A research body called Walker Information conducted an independent research on B2B companies focusing on key initiatives that drive customer experiences and future growth. The study included various customer experience leaders, senior executives, and influencers representing a diverse set of business models in the industry. They published the report titled “Customer 2020: A Progress Report” and the following are strategies that best meet the changing needs of customers in the B2B landscape.
Over 45% of the leaders highlighted the importance of developing a customer-centric culture that simplifies products and processes for the business. Now the question that we need to ask ourselves is, how do we as an organization scale up to these demands of the market? I strongly believe that each of us, in the different roles we play in the organization, has an impact.
The Executive Team can support more customer experience strategies, formulate success metrics, measure the impact of customer success initiatives, and ensure alignment with respect to the corporate strategy.
The Client Partners can ensure that they represent the voice of the customer, plot a feasible customer experience roadmap, be on point with customer intelligence data, and ensure transparency and communication with the teams and the customers.
The cross-functional team managers and members can own and execute process improvements, personalize and customize customer journeys, and monitor key delivery metrics.
When all these members work in unison, the target goal of delivery excellence coupled with customer success is always achievable.
Going Above and Beyond
Organizations should aim for customers who can be retained for life. The retention depends upon how much a business is willing to go the extra mile to add measurable value to its customers. Business contracts should evolve into partnerships that collaborate on their competitive advantages that bring solutions to real-world business problems.
As customer success champions, we should reevaluate the possibilities in which we can make a difference for our customers. By focusing on our core competencies and using the latest tools in the market, we can look for avenues that can bring effort savings, productivity enhancements, process improvements, workflow optimizations, and business transformations that change the way our customers do business.
After all, We are GAVS. We aim to galvanize a sense of measurable success through our committed teams and innovative solutions. We should always stride towards delivery excellence and strive for customer success in everything we do.
About the Author –
Ashish Joseph is a Lead Consultant at GAVS working for a healthcare client in the Product Management space. His areas of expertise lie in branding and outbound product management.
He runs a series called #BizPective on LinkedIn and Instagram focusing on contemporary business trends from a different perspective. Outside work, he is very passionate about basketball, music, and food.