Happy New Year to you all. I hope the past few weeks have given you a chance to relax and recharge, and that you return ready to make 2025 a year of growth.
Each year, the festive period reminds us of the importance of positivity in inspiring confidence and optimism. At a time when talk of economic challenges has predominated, as business leaders, we would do well to carry this positivity forward.
There’s reason to do so, too; in its latest forecast, KPMG suggests the UK economy could grow by 1.7% this year, driven by a rebound in consumer spending.
Remaining agile and in touch
That said, the road ahead has its obstacles: the impact of low investment levels, stifled productivity, and a hard-hitting budget.
As a result, many businesses are planning price increases in the first quarter – an understandable step given the climate, albeit one that risks higher and more persistent inflation.
In this environment, service-led businesses will need to remain smart, adaptable and in tune with the expectations of their customers. This means balancing price with perceived value.
When asked to spend more as consumers, we tend to expect more in return – not only in terms of product quality, but the service that underpins it. By pairing higher prices with elevated service standards, businesses can ensure customers feel they are still seeing true value for money.
Transparency is equally important. Consumers are more discerning than ever – with more access to information – and as prices rise, they will be more conscious of where their added spend is going.
Whether investing in staff, training, or technologies like AI and chatbots, businesses must spend thoughtfully to enhance their service offering and ultimately provide genuine added value to the customer in a way that enhances their overall experience.
Focusing on service excellence
Our research has consistently shown that people will pay more for excellent service – some of them significantly more. With price hikes on the horizon, the coming weeks offer a timely opportunity for businesses to offset adverse customer reactions by raising the bar when it comes to their service offering.
Those who use the end-to-end experience to differentiate will build customer trust and loyalty and provide lasting stability for the bottom line.
While doing so will undoubtedly come with challenges, as businesses continue to navigate lasting economic uncertainty and rising costs, the long-term benefits of investing in service are well documented and should be a strong incentive for companies who wish to weather this and future storms.
The Institute’s latest UK Customer Satisfaction Index, launching next week, will shed light on the state of the Service Nation and provide insight into the steps organisations can take to overcome these challenges by raising service levels.
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