How to Protect Your Bottom Line in Tough Times

Expect the Unexpected

We've all heard this phrase, but its relevance is more critical now than ever before. In the business world, it means constantly evaluating what you can control and influence and ensuring you have the experience you need. While many areas may be beyond your control, such as industry-specific disruptions, there are always strategies you can implement to safeguard your company’s bottom line. The key is to focus on the aspects that matter most: your customer experience and team culture, which together add up to your market Reputation.

The Challenges Ahead

The Australian economy is currently facing significant challenges. As inflation continues to bite, and economic growth has slowed considerably. With market conditions tightening, businesses need to avoid falling into the "Price Trap"—a scenario where price discounting leads to eroded margins and potential bankruptcy. Instead, businesses have a unique opportunity to define their point of difference. By providing exceptional customer service and nurturing a positive company culture, you can stand out without sacrificing your bottom line. Different isn't always better, but better is always different.

Be Exceptional at Every Touchpoint

In tough economic times, the businesses that survive and thrive are those that build a #1Reputation through exceptional customer service. When customers face their own challenges, especially in B2B markets, they will remember the companies that supported them, were reliable, and provided genuine value. This loyalty is invaluable, as customers are likely to return even if a cheaper offer comes along. Usually, lower prices come with lower trust and service, so focusing on quality service can set you apart. Without it, the #1 decider is the price tag.

The Power of Customer Appreciation

Achieving a #1Reputation goes beyond customer satisfaction—it's about customer appreciation. Appreciation is the result of consistently going above and beyond for your customers, leading to loyalty and strong, long-term relationships. Satisfaction is merely acceptable; Appreciation is exceptional. Satisfaction is limited to a head connection; Appreciation is a heart connection. Appreciation is linked to the most powerful loyalty drivers, friendly, helpful, caring, communication, trust, understanding, all emotional connections. Satisfaction is linked to lower emotional drivers, efficiency, knowledge, reliability, availability, stock, price, and convenience. Without these, there’s little forgiveness. This distinction is crucial for building a resilient business that can withstand economic pressures.

Simple Tips for Maintaining a #1Reputation

To stay highly relevant and protect your bottom line, focus on doing the simple things exceptionally well.

Personal Engagement

Make personal phone calls to check in with your customers. These should not be sales calls but genuine efforts to show interest in them, support and concern.

Understand and Adapt

Learn about any impacts on your customers and find ways to help, whether it's adjusting delivery times or reducing stock levels. Show that you are a reliable partner and always acting in their best interests.

Be a Source of Referrals

Understand your customers' market and actively look for opportunities to refer new business to them. Being a trusted supplier means your referrals are highly valued. They would even be happy to pay extra as it no longer costs more to do business with you — it actually pays.

Leverage Your Network

Consider how you can connect your customers with other suppliers who can solve their challenges, adding further value to your relationship.

Stay in Communication

Maintain regular communication to understand your customers' business and their specific needs and challenges. This ongoing dialogue is essential for staying relevant and supportive.

Team Focus and Engagement

Ensure that every member of your team is clear and focused on delivering the best customer experience possible. In challenging times, their jobs depend on it. A highly engaged and committed team can secure the business, prevent losses, and set the stage for future growth when the crisis passes. Everyone on the team is responsible to build and protect the company’s Reputation.

Darrell Hardidge?is a strategy expert in building a #1Reputation and CEO of customer experience research company Saguity. Working with businesses on mastering customer appreciation and optimising service standards. He’s the author of The Client Revolution, the best seller The 10 Commandments of Client Appreciation, and soon to be released his new book #1Reputation.