Want to Survive the Next Recession? 4 Things NOT to Do
With the stock markets in free fall, and the likelihood of a double-dip recession increasing by the hour, it's worth reflecting on the one thing that could save your business.
That's right, folks. Say it with me: Service!
A recent survey from American Express illustrates my point. The latest Global Customer Service Barometer suggests good service could make the difference between profit and loss.
Or, during a recession, between solvency and oblivion.
About 7 in 10 respondents to the Amex survey said they were willing to spend an average of 13 percent more with companies they believe provide excellent customer service. That's up substantially from 2010, when 58 percent said they would spend an average of 9 percent more with companies that deliver great service.
(Irony alert: American Express isn't the first company that comes to mind when you think of great customer service. I've mediated more than my share of complaints against the company. But give it credit for trying.)
If, as the research concludes, customers are inclined to pay more for service, then how important is service to your company's survival?
Well, consider what happened during the first recession, when companies from Blockbuster to General Motors cratered. Sure, there were a number of factors that caused their bankruptcy, but no one can deny that they also had problems â€" often severe problems â€" with meeting customer expectations.
Make no mistake, good service could save a company. At the same time, if you're a consumer, you can demand better service during a recession â€" and get it.
But how? Here are a few things you should never ever do.
Stop taking your customers for granted. One in five respondents to the Amex survey believe companies take their customers for granted. And who wants to do business with a company like that? Making customer feel special doesn't necessarily mean coddling them or slashing prices. It can be as simple as reminding your employees to say "thank you" after a transaction.
Stop being evil. If you're selling a shoddy product or service, now is the time to quit. Poor service upsets customers, the Amex survey found. No surprise there. The customers with the most spending power (ages 30 to 49) were the most frequently angered â€" an astounding 60 percent. Ticking off your best customers? Not good.
Stop annoying your customers. And make no mistake, they are annoyed when you place them on "hold" and force them to listen to a patronizing message that says, "Your call is important to us. Please continue to hold." (The survey says 26 percent of customers found that annoying.) There are no reliable statistics on the behavior of annoyed customers, but I think it's reasonable to assume that when you're upset, you're far less likely to spend money.
Stop resting on your laurels. Two in five respondents to the survey said that while companies are helpful, they don't do anything extra to keep their business. That means going the extra mile when none of your competitors are. It can be something as small as helping carry the groceries out to the car or something as elaborate as offering a loaner car when yours is in the shop. Make no mistake â€" customers reciprocate by giving you their business.
A final note to consumers who are watching the stock market fluctuations and who are bracing for another recession: You're in the driver's seat. Your money will speak louder than ever during an economic downturn.
Make every dollar count.
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Christopher Elliott is a consumer advocate, syndicated columnist and curator of the On Your Side wiki. He's the author of the upcoming book Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals, which critics have called it "eye-opening" and "inspiring." You can follow Elliott on Twitter, Facebook or his personal blog, Elliott.org or email him directly.Photo: alanclarkdesign/Flickr