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HOW TO PROTECT YOUR BOTTOM LINE IN TOUGH TIMES Stay alive as a business by avoiding the price trap and ensuring your customer service is exceptional. EBy Saguity CEO Darrell Hardidge. xpect the unexpected. We’ve all heard this, but in the past few months the advice has been more relevant than ever. So, what does it mean when it comes to business, and how can you plan for an unexpected event? The simple answer is always to be looking to those things you can control, and what you can influence. While so many areas are completely out of our control and, unfortunately for some sectors such as travel, events and hospitality, there’s little you can do until the crisis passes. It’s time to bunker down to survive so you can reset and go hard when normality returns. The challenges ahead For many businesses with activity continuing in their market, the challenge is how to be the business people choose to buy from. Make no mistake, for many markets supply is going to exceed market demand massively, so the predictable impact is price discounting. The real issue is that so many will discount themselves into bankruptcy and prolong the challenges for everyone else. There will be some truly stupid pricing models advertised as a desperate measure to survive. This is known as the price trap, which you must avoid. The price trap kills bottom line margin, and most businesses don’t even know they’re stuck in it, believing ‘that’s the competitive space we’re in’. However, a unique opportunity exists to define your point of difference. You must look at how can you provide the most exceptional customer service possible and how your team and business can be delightful to deal with. This doesn’t cost anything more than focus and commitment, which is where many will fail as they don’t understand the power of excellent customer experience. Be exceptional at every touchpoint This current crisis has more emotion attached to it than any other situation we’ve experienced for at least 30 years (the last recession) and with it a straightforward rule for every business that wants to survive. When we’re in a personal crisis, we always remember those who support us, those who are there, those we can trust to do the right thing, those we grow to appreciate genuinely. Business right now is the same. We’ll remember the suppliers that look out for us and do what they can to be the best they can be for us, true professionals as suppliers – those that keep in touch and make sure they’re by our side. In return, we’ll go out of our way to support them and make sure they can also count on us for their order. Be exceptional to your clients and they’ll give you back the same. When a cheaper offer knocks on the door, perhaps they’ll feel guilty in not choosing you. While in some cases the price will win, it’s a sound belief that they’ll be back. Usually, a lower price means lower trust and service. Cheap won’t make you great, but great will make you cheap Simple things you can do well to stay highly relevant amid all the drama include: • Make personal phone calls to check in with clients. Don’t make it a sales call. Make it a genuine call for support. • Find out what the impact is and see how you can help. It may be to reduce their stock, allow them to stretch delivery times, etc. Find out how you can avoid being a concern to them. • Understand their market and think about how you can be a source of referrals. If you’re a trusted supplier, then your referral will be gold for them. If you can win new business for your clients, they’ll reward you with loyalty. • Consider a supplier of yours that you may be able to refer. Perhaps you can help them receive better service, or solve a challenge. • No matter what, be in communication as best you can. It’s from conversations that we learn things about our clients. The one challenge for most of the market will not be how to thrive, but rather how to survive. Make sure every member of your team is clear and focused on the need to be the greatest in customer service. Now more than ever, their jobs depend on it. A company with a highly focused and engaged team will collectively keep the business secure and in many cases save it, while setting it up for massive growth when this crisis passes. CUSTOMER SERVICE About Darrell Hardidge Darrell is a customer experience strategy expert and CEO of customer research company Saguity, specialising in driving revenue growth from customer appreciation. Darrell is the author of The Client Revolution and The 10 Commandments of Client Appreciation. To find out more, visit www.saguity.com. JUN, 2020 RETAIL WORLD 51