Business leaders are driving their teams to either grow, cutting costs, and in most cases, both are the priority. Cutting costs can often mean cutting headcount, renegotiating contracts and partnerships, trimming product lines or that aren't selling as well, centralising operations to cheaper resources, and more.
At The Customer Agency, we think a more cost-effective way to cut costs should start with a 360 perspective of your customer strategy. B2B companies will often view customers as "revenue-generating" and not stop to identify what customers see as "customer value" from their customer's perspective. It's essential to understand the drivers and value your customers enjoy and help them to be successful in their businesses. These are the components that need to be doubled down with investment and focus.
Other areas that the customers perceive as low value, such as a lengthy and costly feature/function update to a rarely used product. The lesson here is to focus on the product or service with the most customer value and cut the rest.
When we ask clients what their customer value most from them, often they’ll refer to an annual survey or an out-of-date report. You want to ensure your strategy for cost savings and growth you get right, with real-time customer insights informing your decisions. Often, we'll run Customer Insights projects to go and talk to the customers of our client and probe in an unbiased way "What does value mean to you?" Having a conversation with someone independent will often open up what value really means to them now and in the future, along with their goals and aspirations.
Focusing on the most critical drivers will show your customers that you understand their wants, needs, and desires. You know their most significant problems and are laser-focused on providing them with impactful value.
This customer-focused approach will not only help them get through the uncertainly of today's pandemically induced climate; it will serve for a sustainable and long-term customer strategy.