3 simple strategies for challenging times
Given the present economic climate, we thought it would be useful to devote this post to 3 simple, high-return strategies companies can pursue if their overall goal is to:
♦ control costs and cashflow
♦ maintain sales growth, and
♦ stimulate morale…
…If you are pursuing these goals, then you are likely to find the following strategies will deliver the highest return…
Strategy # 1 Make customer retention your top priority
Often in times of recession, companies believe that their greatest opportunity for growth lies in attracting new customers.
Yet research from numerous sources has found this to be mostly misguided. Winning customers is important, but not nearly as important as keeping them. This is because the research shows that the replacement cost of an existing customer by a new one is between 2 and 4 times. Also, the tactics used for winning new customers (eg price offers, promotions) can actually serve to undermine existing ones and replace what Frederick Reichheld called ‘good profits’ with ‘bad profits’.
Keeping your existing customers and concentrating on their willingness to stay, say and spend is the #1 play in times of recession, as a recent Bain & Co. study has demonstrated.
Solution Enhance your customer experience – the only driver of customer stay. Talent Technologies offers this through its consulting package and also offers engaging training programmes including the popular Customer Experience Maximisation programme which help companies create a compelling customer experience and move up the value chain – for a minimal marginal investment!
Strategy # 2 Invest in your people’s performance
If you have low staff turnover and your company is planning to be around for a while, then now is the time not only to build your customers’ loyalty, but also that of your people too. In fact, both are closely correlated as research into loyalty has shown.
And, as huge research studies by both Gallup and the Corporate Leadership Council have shown, the #1 driver for people performance is…
“The opportunity to do what you do best”
…which, put simply, is discovering each individual’s talents and getting them into the roles which lets them play to them.
The snag, as Drucker observed, is that most people don’t know what their talents are. The significance of them, however, cannot be underrated. He devoted no less than two chapters of his book The Effective Executive on the subject.
Solution Talent Technologies has introduced a powerful one day programme, called Talent Factor, which helps individuals:
- discover their talents objectively
- learn how to convert these into strengths
- discover the roles which they are most likely to be effective in (natural roles)
More details can be found here
Strategy # 3 Invest in your team’s emotional intelligence
As we have seen in earlier posts, the recession is creating not only financial challenges but, perhaps more importantly, emotional ones.
The companies that will succeed during this tough time will be the ones who win the mind game first.
We’re seeing the recession creating fear, stress and insecurity among employees. And these feelings are impacting morale and the mindset needed to achieve results. It’s important to recognise that these are emotional conditions which can only be overcome emotionally.
Solution Talent Technologies has a fantastic one-day programme which has been run at some of the top companies in the world. Emotional Intelligence is ideal for the collective mindset prevalent among Asian teams and helps build emotional awareness and the skills needed to react to different emotional situations.
The downturn is an opportunity to companies who invest in the customer experience areas that build stay (loyalty) and say (advocacy) – and doing so, in challenging times, not only enhances the customer’s experience, but improves your company’s profitability and, above all, resilience in challenging times.
For a free consultation why not call our office on +662 6393550!
Talent Technologies :: Taking your Talent to a Higher Level