A knee-jerk reaction of cutting costs and racing to the bottom price point won’t necessarily deliver the desired results. Today’s savvy consumers know that a ‘good deal’ doesn’t always equate to the lowest price. They seek value in a broader sense—one that includes superior customer experience and high-quality products or services.

Why businesses need to put customers, not price, first in tough times

Talk about living through a long winter of discontent. Consumer confidence is at a low ebb, and South Africans are feeling overwhelmingly uncertain about their economic wellbeing. With constant loadshedding, high inflation, a dwindling Rand, and other hurdles, it’s no wonder we’re all yearning for a glimmer of hope to melt away the frosty grip of ambiguity.

The good news for business though is that there is light at the end of the tunnel. In a recent snap poll we conducted on our social platforms, we discovered something unexpected  or not).  We asked our followers what would make them switch brands when the going gets tough? Despite the prevailing notion that price is the sole driver of purchasing decisions, it turns out that customer service and empathy play a much larger role in swaying shoppers. That’s right, folks—consumer decisions aren’t solely based on the price tag.

How does empathy help during an economic crunch?

When faced with economic uncertainty and rising prices, you might assume that customers would prioritise the lowest price possible. However, only 22% of respondents in our poll listed price as their decisive factor.  Interestingly, a whopping 56% identified ‘great customer experience’ as the most important aspect, with ‘better products/services’ also receiving 22% of the votes. What this tells us is that businesses need to shift their strategies away from simply slashing prices and focus more on fostering empathetic connections with their customers.

But price helps businesses stay competitive, right?

A knee-jerk reaction of cutting costs and racing to the bottom price point won’t necessarily deliver the desired results.

Not always.  A knee-jerk reaction of cutting costs and racing to the bottom price point won’t necessarily deliver the desired results. Today’s savvy consumers know that a ‘good deal’ doesn’t always equate to the lowest price. They seek value in a broader sense—one that includes superior customer experience and high-quality products or services.

So, what’s the bottom line here?

Well, it’s all about customer empathy. Businesses need to recognise the prevailing price-consciousness in the market while understanding that customers are no longer willing to sacrifice product quality and a positive customer experience for a lower price. In times like these, a single misstep can shatter customer loyalty, and it’s harder to regain than ever before.

Don’t just take my word for it though. A study by Salesforce, a global customer relationship management software company, found that 71% of consumers had switched brands within the last year due to changing priorities, lifestyles, or financial situations. Nearly half of those who switched did so because of poor customer service, while nearly 60% cited product quality as the driving factor. Furthermore, a staggering 90% of respondents believed that the experience a company provides is as important as its products or services.

Renowned digital anthropologist and futurist Brian Solis emphasises the significance of empathy in business, specifically ‘digital empathy’. Don’t you just love the lingo coming out of the information age! This  ‘digital empathy’ concept involves understanding customer behaviours, preferences, and aspirations through human-centred data and creating meaningful customer engagements based on those insights. While technology undoubtedly plays a role, an over-reliance on AI and bots can undermine the human touch that customers crave. It’s the antithesis of true empathy in my opinion.

How can businesses deliver excellence in customer experience and maintain client loyalty?

Allow me to me share some of my top tips that can either make or break your company’s success during these difficult times:

• Empathise: Your customers are uncertain and facing challenges. Take the time to engage with them, listen to their concerns, and find ways to adjust your plans or contracts to accommodate their financial situations.
• Communicate your intentions: Let your empathy shine through in all your communications. Show your clients that you stand with them during challenging times.
• Walk the walk: Empty slogans and hollow marketing promises won’t cut it. Make genuine commitments that you can deliver on and build trust with your customers.
• Meet your client where they are at: Communicate through the channels that work best for your customers, not just the ones that are convenient for you. Meet them on their terms.
• Don’t get too caught up in automated customer experience: Remember that your customers are vulnerable right now. Automated experiences can be easily replicated by your competitors, eroding any competitive advantage you may have.

By embracing empathy and prioritising exceptional customer experiences, your business can weather this economic storm and emerge from the chaos stronger than ever. Remember, it’s not just about the price tag; it’s about the lasting connections you forge with your customers. So, let’s spread some empathy, foster loyalty, and make a difference in these tough times.