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\nWe all know it\u2019s more expensive to bring on a new customer than it is to retain an existing one. This is doubly true during a recession\u2014and in case you haven\u2019t been on social media, watched the news, or purchased eggs lately, it seems we\u2019re barreling toward one right now.<\/p>\n
Customers in a recession are more hesitant than ever to take the plunge with a new product or provider, so it takes more effort and resources to convert them than during a healthy economic environment. The customers that are still in the market are under more scrutiny by their financial teams, and deal cycles are longer and more intricate than even just a quarter ago. Some\u00a0 customers drop out of the market entirely.<\/p>\n
It\u2019s clear, customer acquisition is not where our focus should be in 2023. What are businesses to do, then, to keep revenue flowing in and our numbers across the board from taking a nose-dive into the red?<\/p>\n
The answer is simple. Go big<\/em> on customer retention.<\/p>\n Now is when thoughtful customer service shines. Retaining existing customers and keeping churn to a minimum is vital to surviving rocky terrain. An environment where everyone is having a difficult time is one where excellent customer service teams can set you apart and keep your product off clients\u2019 lists of cost-cutting measures.<\/p>\n The key is making sure that customers understand how crucial your solution is to their success. Now is not the time to take things for granted. It\u2019s the time to invest in your customers\u2019 long-term success, and show up in a way that keeps you at the top of that \u201cWe can\u2019t live without it\u201d list.<\/p>\n Be proactive. Check-in and demonstrate that you understand times are tough and you\u2019re a major part of keeping them from getting tougher. Pull the numbers that show the value proposition of your product\u2014and if you don\u2019t have the ability to point to the hard data on how you help their bottom line, there\u2019s no better time than now to get those data collection and analysis tools in place. Build ROI metrics into your communications and expectations early on, don\u2019t wait until their CFO is asking.<\/p>\n Demonstrating empathy and understanding of your customers\u2019 situations is huge. Communication is essential to any strong relationship, and that\u2019s exactly what customer service is there to cultivate: relationships. Remember that your customers don\u2019t necessarily want<\/em> to end their contract\u2014but if the numbers suggest to them that it\u2019s the right thing to do, they might have to. Your goal is to demonstrate to them the value you bring to the relationship with genuine connection and empathy, backed by metrics that prove your worth when it comes time to make hard decisions.<\/p>\n Having a strong working relationship and providing excellent customer service will be worth more than a few points when they\u2019re comparing which products to drop and which to keep on. It\u2019s a good idea to proactively reach out not only to demonstrate the value you\u2019re already providing but to see what else you can do to make their path through the recession easier. This is the perfect time to learn from your customers and make meaningful changes that benefit you both.<\/p>\n For example\u2014offer them upgrades and extra features to their products for a period of time. For free. Seriously. Especially if it\u2019s just a matter of flipping on a switch that gives them more access to additional tools and won\u2019t cost you more in support or resources. This signals that you\u2019re invested in their success in this hard time and see them as more of a partner<\/em> than just a number in accounts receivable. Actions like this strengthens the relationship as well as increases the value of what they\u2019re getting from you, making the option to jump ship come with even more downside.<\/p>\n I mention doing these things proactively as opposed to reactively with good reason. Over the years I\u2019ve spoken with many companies about customers they\u2019ve lost, and very often the first time they discovered that customer was unhappy is when they reached out to cancel their contract. Keep tabs on customers\u2019 satisfaction and exceed their expectations whenever possible. Stay in constant communication and empower your customer success teams to do whatever it takes to help your customers thrive in these tough times. It\u2019s very<\/em> hard to pull a customer back when they\u2019ve left; it\u2019s a much more manageable task to keep them from taking that drastic step in the first place.<\/p>\n It can feel daunting to do more for your customers when we\u2019re all facing the same economic anxiety. You\u2019re likely trying to scale back and cut costs yourselves, but there\u2019s a reason that successful companies double down on customer service during economic downtowns. Investing in your customers keeps them around, which keeps your lights on, and when the market takes a stronger turn, you don\u2019t have to rebuild your most important asset: your customer base.<\/p>\n By leading with empathy and proactively communicating with your customers about what you can provide to ease their pains, backed with detailed ROI data, your company can actually grow through a recession and come out the other side stronger than ever.<\/p>\n
![\"Dan](\"https:\/\/www.customerservicemanager.com\/wp-content\/uploads\/2023\/02\/dan-darcy1.jpg\")
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