Ceramic Industry

How Can Your Company Survive a Recession?

September 15, 2008

Times are tough for companies across the country in a broad range of industries. One way to make sure your company survives the economic downturn is to keep focusing on your customers. “In a down economy people focus their spending on companies they trust,” says Tom DeCotiis, Ph.D., cofounder of consulting company CorVirtus (www.corvirtus.com) and author of Make it Glow. “As consumers get choosy, mediocre choices fall by the wayside for one reason: These companies have not earned enough customer loyalty to survive a challenging economy.”

DeCotiis has five essential tips to propel companies through this recession and prepare for even more success:
  • Focus Your Employees on Creating Positive Customer Transactions. Insist that your employees provide a great experience every time and teach them how to do it. Train every employee in proper customer service procedures and ensure they clearly understand the importance of the customer to the company’s, and their own, survival. In difficult times, companies do not get a second chance to make a good impression on their customers.
  • Ensure Your Customer Feels Valued. Customers need to valued, not just for their money, but for who they are. In order to do this, make sure that your company is addressing your customers’ need for a strong sense of belonging and significance. For example, make sure that your staff is positive and proactive with complaints rather than negative and reactive.
  • Set Your Customer Expectations. It is not a matter of exceeding customer expectations, but guaranteeing that your customers are never disappointed. Use your company’s unique selling point (USP) to shape your customers’ expectations.
  • Ensure that Your Employees Understand Your Company’s Values. People are drawn to integrity whether it comes from another person or a company they buy from. If your employees understand what your company stands for and is trying to accomplish, then they will accomplish it. This is important to remember as owners train managers who train employees and so on. The result of this communication chain is a lack of consistency and alignment with the original values of the company. Spot check different locations of your business with “secret shoppers,” people posing as customers who will report to you their experiences. This will tell you exactly how your company’s values are being adhered to.
  • Evaluate How Cutting Costs Will Affect Your Customer. There is a big difference between cutting and managing costs. What you never want to do is cut quality. A company lives or dies by its reputation, and quality is at least one-third of its reputation.
“Focus on keeping your company worthy of your customers’ loyalty,” says DeCotiis. “If you do, then you will propel your business through this downturn and create a solid foundation from which to grow in the future.”