Recession Proofing Your Business

During a recession, businesses often panic and resort to cutting costs. However, focusing on client experience (CX) can actually help businesses thrive. Research shows that companies that prioritize CX not only survive recessions but also thrive. CX leaders understand the importance of focusing on high-value clients and optimizing productivity. They also uncover inefficiencies and avoid reckless cost-cutting measures. CX can guide cost-cutting decisions and ensure that relationships with clients are not sacrificed. To build a recession-proof CX program, businesses should have a clear purpose, listen to their clients, and find opportunities for positive change. They should also invest in their employees. Okay, so picture this right the economy's doing that whole shaky thing everyone's talking about a recession and budgets forget about tighter than ever Right. Yeah, and I bet a lot of businesses their gut instinct is to like Slam that panic button. Yeah slash costs hunker down just hoping for the best But what if I told you there's a way to not to survive a downturn? Look, what if you could come out stronger on the other side? It's not some magical solution or anything. It's all about client experience Okay, CX. Okay, and I'm not just talking about good customer service here. Okay, this is about Really getting deep down Understanding what your client needs and weaving that into like the very fabric of your business and honestly That becomes even more critical and things get tough when the economy's like this makes sense So we did a deep dive into some research on this by CX pilots and one thing that really jumped out There's a clear pattern here the companies that really prioritize CX they don't just weather the storm of a recession They actually thrive. Yeah, like during the 2008 recession while other businesses were seeing their stock performance tank down 15% the CX leaders. They actually went up 10% Wow, that's a 25% difference It's clear that CX isn't just about good vibes. It really hits your bottom line. It's true and it's fascinating right this resilience It all comes down to two core principles. The first is CX leaders. They get it They understand how important it is to focus on the right customers those high-value clients They're the ones that drive future growth Those are the relationships that are going to keep you afloat when everything else is a bit shaky Makes you think about your own clients, isn't it? Yeah, are you nurturing the right ones especially right now? That's the question and the second reason CX is so powerful is that it makes you think about optimizing for productivity, right? Not just instinctively cutting cost right this research. We looked at there was this one company, right? They used CX analysis and they completely revamped how their contact center worked and their whole procurement process just Streamlining those systems. They made things better for their clients, obviously, but they also saved a ton of money It's all about working smarter. Not just leaner now. I know what you might be thinking That all sounds great, but easier said than done, right? When a recession hits sometimes cutting costs feels inevitable, yeah, I get it It can feel that way, but that doesn't mean it has to be reckless, you know Yeah, that's where CX becomes even more important I think a strong CX strategy it can actually guide those cost-cutting decisions Yeah, making sure you're trimming the fat not the muscle showing the fat not the muscle like that So, how does CX actually help us do that? Like how do we pinpoint those areas where we can tighten our belts but do it strategically it's a good question The research we looked at it outlined four key values of CX during a downturn. They're actually pretty insightful Okay We already talked about holding on to those high-value clients But the second one is all about using CX as a driver for productivity One thing we see over and over companies get bogged down with these really inefficient processes They're so used to doing things a certain way that they don't even realize those old procedures are costing them time and money It's like they'd say if it ain't broke don't fix it But sometimes what we don't see is that it is broken. We're just so used to the broken pieces, you know Exactly, and when you look at your operations through a CX lens suddenly you start to see those cracks like this one company in the research They started using these simple customer feedback surveys and they found a major pain point in their online ordering system They streamlined that one process complaints dropped by 20% save them countless hours of customer service time It made things easier for the customer and be more efficient for the company win-win, right? Totally, it's amazing how the solutions can be staring us right in the face and we miss them We just need that fresh perspective. That's true, which I guess brings us to that third value. Yeah uncovering those hidden inefficiencies What else are we missing? Well, sometimes it's about questioning the sacred cows, right? The things we do a certain way just because that's how we've always done it Oh, yeah, but when a recession hits that's when you gotta ask Are these legacy procedures actually helping our clients or are they just legacy, right? Could we be doing something better something smarter something that actually improves the customer experience and at the same time? streamlines our operations so Challenging those deeply ingrained assumptions daring to ask what if yes, what if we did this differently? What if we completely? Reimagined this process exactly and you know what that ties in nicely with the fourth value Which is all about avoiding those rash cost-cutting measures the ones that might seem like a good idea right now But they can do some real damage long term because those quick fixes They often create bigger problems down the road, right, especially when it comes to client relationships, which are so important during a downturn 100% it reminds me of this company I worked with they were panicking trying to cut costs and they decided to outsource their customer service To a third party call center. Oh, no Yeah, they thought they were saving money, but it was a disaster for their relationships with their clients customers were complaining about long wait times Unhelpful representatives just a general lack of personalized service. Ouch I bet that ended up costing them more in the long run You already know customer retention plummeted their brand reputation took a huge hit took them years to recover That's why that fourth value that idea of CX as a safeguard is so important It's about having that long-term vision even when things are tough It's about understanding that While cost-cutting might be necessary. You shouldn't sacrifice those relationships that are going to carry your business through So, how do we find that balance? How do we make smart decisions when we're under pressure? Well, luckily CX pilots gives us a roadmap They outline these ten principles for building a recession proof CX program and it's surprisingly practical to a roadmap Huh? Okay. I like that. So let's break it down ten principles. Where do we even start? Well, they really do cover a lot but the core idea it's that CX shouldn't be some afterthought, right? It can't be something you just tack on when times get tough. It needs to be a part of your company's DNA, you know, it's right in exactly and one of the first principles I think it's one of the most important is having a really clear why like why are you even in business in the first place? What value are you bringing to your clients? It might seem obvious but you'd be surprised how many companies kind of lose sight of that core purpose Especially when they're just trying to survive especially when it's crunch time, right? Yeah, it's easy to get lost in the weeds exactly But if you don't even know why you're doing what you're doing, how can you expect your clients to get it? So true and that sense of purpose That's what's going to guide every decision you make how you treat your employees how you talk to your clients It all flows from that like your North Star. Yeah, that's a good way to put it Keeps you aligned even when the going gets tough. Love it. Okay, so strong why what else we got in this CX toolkit? All right. Let's see. This next one really hit home for me. You've got to get closer to your clients Okay, that seems pretty straightforward It does but it's surprising how many businesses they make decisions based on assumptions instead of actually listening to their clients It's easy to do though. We think we know what our clients want, right? But if we're not actively looking for feedback actively listening We're just guessing a hundred percent and this is even more important during a recession because your clients needs they're changing They're probably facing new challenges anxieties Things they weren't worried about before for sure. Your job is to figure out what those things are and then adapt, you know So get closer to your clients check got it. What's next? Okay, this one might sound a little weird at first but stick with me find the unrealized opportunity Wait, what opportunity? Yeah in the middle of a recession. I know right when you're in survival mode Opportunity is probably the last thing on your mind Probably but here's the thing a downturn it can actually be a really powerful opportunity for positive change interesting So instead of just hunkering down waiting for the storm to pass. Mm-hmm. You're saying we should be looking for ways to actually improve Yes innovate come out stronger on the other side use this as a chance to really connect with your clients in ways you never even thought Of before shifting your mindset exactly going from scarcity to abundance Even if it feels counterintuitive and this ties into another principle that I think it's overlooked a lot You've got to focus on your talent your employees, right? They are your biggest asset, especially in a downturn They're the ones interacting with your clients keeping everything running but so often when companies feel that squeeze What do they do they cut back on employee benefits? Training they even start letting people go. It's so short-sighted though. It really is because when you invest in your employees You're investing in your clients a hundred percent and it doesn't even have to cost a fortune, right? There was this one example in the research this company instead of laying off their entire marketing team They moved them over to their customer success department It saved them money and it let them give even better support to their clients at a time when those clients really needed it Wow, that's really smart. So focus on talent Finding unrealized opportunity get closer to your clients. It feels like all these principles are really about shifting our perspective, you know Changing how we think you got it. CX isn't just about tactics. It's about changing your whole mindset It's about making your clients the heart of everything you do so building a business It's not just recession proof, but actually comes out stronger on the other side exactly a business That's truly client centric where your clients are the North Star that guides you. I Love that. Well on that note, I think it's time to wrap up this deep dive and for everyone listening I hope this conversation has sparked some new ideas for you We've covered a lot of ground today, but if you take away just one thing let it be this Your clients they're the lifeblood of your business if you take care of them, they'll take care of you recession or not