In the midst of a global economic slowdown, rising inflation, and the Russian war in Ukraine, firms around the world are battening down the hatches for economic resilience. The near term outlook for the economy is not good. In a recent poll by World Economic Forum, nearly two thirds of economists surveyed expect there will be an economic recession in 2023. As we watch financial firms like Silicon Valley Bank fall, organizations are taking a look at their P&L and optimizing their operations.
Many companies are making short term moves from their inflation and recession proofing playbooks. Firms across many sectors are reducing spending by cutting, postponing or decreasing their budgets. With labor being one of the largest costs to most businesses, layoffs are often the most immediate risk reduction strategy. In the first quarter of 2023, over 100,000 people have been laid off. While this can quickly reduce expenditures, there are many long term consequences like the loss of institutional knowledge and the personal impact it has on employees.
We’ve been helping a number of firms with their strategy during these times. We often get calls seeking advice and resources. Some organizations have decreased their CX budget and are looking for ways to ensure continuity for their client experience. At the most innovative companies, CX leaders have taken center stage. In order to help address their needs, we’ve collected our thoughts on the question of what role CX should play in a recession.
Among CX scholarship, it is generally accepted that better CX is correlated with revenue growth (Forrester). During a recession, a focus on CX is one of the best approaches firms can take to recession proof their business and maintain profitability. In fact, CX should be a firm’s prime method of retaining key client stakeholders. To put it succinctly, “during recessions it’s more important than ever to remember that loyal customers are the primary, enduring source of cash flow and organic growth” (Harvard Business Review). Every relationship that professional services firms have with their clients is a high value relationship. Preserving those relationships by providing the best possible custom experience is quite simply the best strategy firms can pursue to maintain profitability during a recession. In our white paper, “Recession Proofing Your Business With CX; How Customer Experience Can Keep Your Organization Profitable During a Recession,” we examine ten principles of a best practice CX program that organizations can implement to keep themselves profitable during a recession.
Listen to experts simplify this white paper.
In the midst of a global economic slowdown, rising inflation, and the Russian war in Ukraine, firms around the world are battening down the hatches for economic resilience. The near term outlook for the economy is not good. In a recent poll by World Economic Forum, nearly two thirds of economists surveyed expect there will be an economic recession in 2023. As we watch financial firms like Silicon Valley Bank fall, organizations are taking a look at their P&L and optimizing their operations.
Many companies are making short term moves from their inflation and recession proofing playbooks. Firms across many sectors are reducing spending by cutting, postponing or decreasing their budgets. With labor being one of the largest costs to most businesses, layoffs are often the most immediate risk reduction strategy. In the first quarter of 2023, over 100,000 people have been laid off. While this can quickly reduce expenditures, there are many long term consequences like the loss of institutional knowledge and the personal impact it has on employees.
We’ve been helping a number of firms with their strategy during these times. We often get calls seeking advice and resources. Some organizations have decreased their CX budget and are looking for ways to ensure continuity for their client experience. At the most innovative companies, CX leaders have taken center stage. In order to help address their needs, we’ve collected our thoughts on the question of what role CX should play in a recession.
Among CX scholarship, it is generally accepted that better CX is correlated with revenue growth (Forrester). During a recession, a focus on CX is one of the best approaches firms can take to recession proof their business and maintain profitability. In fact, CX should be a firm’s prime method of retaining key client stakeholders. To put it succinctly, “during recessions it’s more important than ever to remember that loyal customers are the primary, enduring source of cash flow and organic growth” (Harvard Business Review). Every relationship that professional services firms have with their clients is a high value relationship. Preserving those relationships by providing the best possible custom experience is quite simply the best strategy firms can pursue to maintain profitability during a recession. In our white paper, “Recession Proofing Your Business With CX; How Customer Experience Can Keep Your Organization Profitable During a Recession,” we examine ten principles of a best practice CX program that organizations can implement to keep themselves profitable during a recession.
Listen to experts simplify this white paper.
