How to know when enough customer service is enough
Throughout the economic downtown, business managers heard virtually every cost-cutting measure, from furlough days to reducing IT investment. As we see shoots of recovery, we are reminded that no company can cost-cut its way to excellence; without some focus on the customer, eventually service starts to dwindle, products are shoddy and the company is no longer competitive. Those that persevere through both economic booms and busts incorporate a long-term view of quality and cost measures into their strategic business functions.
As we move toward the post-recession economy, the new consumer norm is frugality. When the economy gets going again, people are expected to continue their more moderate spending habits. One study by AlixPartners concluded Americans will spend at about 86% of their pre-downturn levels. What's important to consumers today is spending wisely, shopping for high-quality products and services, and resisting temptations to splurge at the check-out line.
This frugal mindset extends beyond consumers and into business markets. Corporations are examining their strategic investments and weighing them against the bottom-line benefit of making additional cuts. Return on investment (ROI) must be more than an uncertain proposition discussed in a PowerPoint, but instead a tangible deliverable; otherwise, it's unlikely most companies will fund the new endeavor.
