Four Tips to Recession-Proof Your Business in 2023

Furniture World News Desk on 9/28/2022

The National Bureau of Economic Research defines a recession as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.” Only a year ago, after the shutdowns and supply chain disruptions of the pandemic, retailers and manufacturers were scrambling to build capacity and stockpile inventory. Talk of slowing consumer demand seemed to be focused on a vague and distant future. Now, only a year later, it has become a reality.

Are we currently in a recession? Is one coming soon? Experts disagree, but they all share one opinion: businesses must be prepared and proactive if they are to survive an economic downturn. Here are four tips that will help retailers weather a possible economic storm, no matter their size or sector:

Provide an Omnichannel Experience

According to Aberdeen Group, companies that provide consistent service quality across multiple channels retain 89% of their customers, whereas companies that don’t are only able to retain 33%. Combine this with an understanding that the cost of attracting a new customer is anywhere from 5X to 25X that of retaining a customer and the value of a quality omnichannel experience – one that delights customers online, via email, on social media, by app, and in-store – becomes clear. Omnichannel CX allows you to serve your customers in a variety of ways that are not only convenient and effective, but also boost your brand’s image and credibility.

Invest in Customer Experience

In recent years, CX has surpassed product and price to become the number one brand differentiator. Research has demonstrated that 86% of shoppers are willing to pay more for a better customer experience. Not only that, but one recent PWC study determined that, the more expensive the item (furniture, for example), the more they are willing to pay.

If you are still focusing only on customer service, your CX plan is obsolete. Today’s cutting-edge strategies look at every aspect of the customer experience and transform what was once a strictly transactional connection into a multi-dimensional, experiential relationship. The most successful vendors contemplate and curate each interaction on the consumer journey from initial contact through first sale and on to loyal customer.

Make the Most of Your Sales Team

That same PWC report goes on to point out that more than 70% of shoppers deem friendly service “important.” 60% of shoppers would stop doing business with a brand if they felt service was “unfriendly.” To derive a competitive advantage, you’ll need to equip your staff with the skills and knowledge they need to deliver top-notch in-store experience, even as you up your omnichannel game.

Professional development is critical. Offer frequent, small group training sessions to keep staff up to date on new products and services. Keep in mind that behind every great external customer experience is a great internal customer experience. Every one of your employees is customer-impacting, even those who are not customer-facing. Show office staff that they are critical to company success by including them in your employee education program. Create brand standards for employees and teach managers to monitor compliance and offer feedback.

Reward Customer Loyalty

If you don’t yet have a loyalty program in place, now is the time to research options and invest in one. Loyalty programs work! Just look at the stats:

• 5-20% of new prospects convert to a sale on an initial encounter; 60-70% of returning customers make a purchase on a subsequent visit.
• 76% of customers see a loyalty program as part of their relationship with a brand.
• 83% of customers agree that loyalty programs will make them more likely to continue doing business with certain companies.
• 75% of businesses with loyalty programs see a return on their investment.

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