Warnings this week that some organisations intend to cut plans for growth, especially around headcount and hiring, are both concerning and hard to ignore. The Government has come under increasing pressure from businesses post-budget, but is so far standing firm.
For business, rising operational costs and renewed inflationary pressures won’t have been on any Christmas lists, I’m sure. As business leaders look to deliver results and build investor value amid such uncertainty, caution is understandable.
That said, moments like these demand futureproofed solutions rather than short-term quick fixes – and there will be future consequences for inaction or retreat. If we can reframe the current business environment as an opportunity to re-evaluate our business strategies and invest in areas that will form the foundations for long-term success, it can be used to gain a competitive advantage.
Service as a key differentiator in uncertain times
In challenging economic environments, businesses will inevitably look at cost-cutting. All too often, this can impact elements that are core to the service proposition.
The reality is, however, that investment in service yields significant returns. It’s a key differentiator and driver of customer satisfaction, trust, and loyalty to the brand. This all ultimately drives consumer spending and investors to invest – driving the much-needed growth we all need.
As our research shows, a third of UK consumers will spend more with a business if they receive excellent service, and customers will also reduce their spend in the face of poor service.
However, to maintain the quality of service required to protect the bottom line, thoughtful investment in service is crucial – on all fronts.
People should remain a priority in every organisation. Investing in hiring processes to seek out top talent is essential. Perhaps even more critical is then providing training and upskilling, which improves retention and empowers staff to deliver an efficient and effective service offering.
To complement well-trained staff, organisations must strike the right balance with technology. By leveraging AI, automation and data capabilities, businesses can streamline processes, reduce human error, and enhance personalisation. Thoughtfully designed and well-integrated technology can hugely enhance the service workforce, but it’s essential not to view it as an out-and-out replacement.
Investing for the future
While the current economic conditions undoubtedly present challenges to businesses, we can no longer afford to kick the Service Agenda down the road.
Poor service already costs the UK economy £6.8 billion every month.
Making these thoughtful investments in people and technology is imperative if we are to reverse this cycle – allowing businesses to boost the productivity and efficiency of their service offering today in a way that is sustainable in the long run.
The bitter pill of greater investment costs should, I hope, be sweetened by the potential long-term returns of excellent customer service –with higher customer satisfaction comes increased customer spend, higher margins and increased retention.
It is this forward-looking mindset that will provide businesses with the confidence to recognise that investing in service is a route not just to increased returns, but a more stable and prosperous economy.
Related Posts
