Editorial
The Gist
- Business challenges. AR as key in tackling stubborn 2023 issues.
- Tech leverage. Automation is crucial for improving CX.
- Employee retention. A strong retention strategy boosts CX.
In 2023, business leaders are facing a host of challenges that can best be described as “stubborn.” As challenges continue for customer experience leaders, it’s time to focus on how to make the biggest impact between now and 2024.
There’s a risk that customer experience will be eyed as a “cost center” by anxious business leaders. To stay ahead and show the real value of customer experience, CX leaders need to stay well-versed and proactive about the realities of business today.
Labor shortages, supply chain disruptions and inflation are just a few of the issues that are causing headaches for CEOs and CFOs alike. These trends are impacting customers and their experiences with businesses, making it more important than ever for leaders to adapt and focus on customer needs. Savvy customer experience leaders pay attention to this type of marketplace volatility and help guide decisions that support customers and organizational goals.
Here are some ideas to stay ahead and focus on the concerns of your C-Suite for the rest of 2023.
Inflation Concerns, Labor Shortages & Supply Chain Disruptions!
Central banks around the world are focusing on taming inflation, according to this report from Chubb, which is bad news for businesses that are already grappling with supply chain disruptions and rising labor costs. While the Federal Reserve has paused its consecutive rate hikes, employment remains strong, which means businesses will need to find new ways to attract and retain talent. Customer experience starts with employee experience. CX leaders can make a case for investing in additional training, socializing winning strategies and creating feedback loops for employees AND customers. Additionally, a study by Deloitte found that companies with a strong focus on employee retention have 89% better customer satisfaction rates and four times higher revenue growth compared to those with weaker retention efforts.
Finding talent continues to be a challenge, with little understanding about when this situation will abate.
Labor shortages are a particularly stubborn issue that businesses are facing in 2023. Low and stubborn wages are making it difficult for businesses to attract and retain talent. This is impacting customer experiences as businesses struggle to keep up with demand, deliver regular service and maintain quality levels.
Supply chain disruptions are another stubborn trend that businesses are facing. The COVID-19 pandemic has caused significant disruptions to global supply chains, and businesses are still feeling the effects in 2023. There are current predictions of the employment situation, coupled with stubborn inflation numbers, suggesting that further rate hikes may not be off the table. This means that businesses will need to focus on finding new suppliers and building more resilient supply chains to ensure they can continue to provide high-quality products and services to their customers.
So, what can business leaders do to adapt to these stubborn trends and ensure they are still able to provide excellent customer experiences?
Related Article: House the Customer: Navigating CX, EX and Data Challenges
Leverage Automation & Technology
It’s time to embrace a focus on automation and technology. By automating certain tasks and implementing new technologies, businesses can reduce their reliance on labor and build more resilient supply chains. With advancements in technology, businesses can streamline their operations, reduce costs and improve delivery performance. For instance, a business that uses automated inventory management systems can reduce the risk of stockouts and improve delivery times. These improvements mean a faster, more seamless experience for the customer. Similarly, businesses can use automation to optimize their supply chain and reduce waste. This type of automation also helps the customer experience because the customer journey can be built around true estimates of shipping, delivery and cost.
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Customers are looking for personalized experiences. By leveraging technology, businesses can offer personalized experiences and improve customer satisfaction rates. For instance, businesses can use chatbots to provide quick and efficient customer service, or they can use data analytics to better understand customer needs and preferences.
Related Article: Connect Customer Service Reps With AI Automation for Contact Center Efficiency
Focus on Employee Retention
Businesses with low turnover rates tend to have higher productivity because employees are more likely to be engaged and motivated. Additionally, businesses with high retention rates can reduce recruitment costs and improve their brand reputation, as happier employees are more likely to recommend their workplace to others. Those referred candidates also tend to get hired faster and become productive in less time than candidates who aren’t referred by current employees. Customer experience leaders can assist with retention by including different teams in a cross-functional approach to the customer journey. Employees who know their daily efforts are part of a greater outcome feel more meaning in their work and are more likely to stay.
And yet, labor is costing more. By offering competitive wages and benefits packages, businesses can attract top talent. This helps to maintain quality levels and ensure they are able to meet customer demand. However, some organizations are shifting to shorter hours of operation or more temporary initiatives like pop-up stores instead of permanently investing in real estate.
Customer experience leaders can take the lead in addressing these changes based on customer feedback and operational insights.
Build Strong Supplier Relationships
Finally, customer experience leaders need to see how they can help their organization in building strong relationships with their suppliers. By working closely with their suppliers and building more resilient supply chains, businesses can ensure they are able to provide high-quality products and services to their customers, even in the face of supply chain disruptions and rising costs.
As supply chains become more complex, businesses need to work closely with their suppliers to ensure that they have access to the resources they need. This can include developing contingency plans, diversifying their supplier base and improving communication. While this might not be in the CX leaders’ direct authority, understanding these relationships can help CX leaders build realistic customer journeys and create contingency plans for disruptions.
Building strong supplier relationships can also help businesses reduce supply chain risks. By working closely with suppliers, businesses can identify potential risks and take steps to mitigate them. For example, a business that relies on a single supplier for a critical component can develop a backup plan or work with the supplier to improve its reliability.
Stubborn trends like labor shortages, supply chain disruptions and inflation are simply going to continue to cause headaches for business leaders in 2023. To adapt to these trends and ensure they are still able to provide excellent customer experiences, leaders need to focus on automation and technology, employee retention and building strong relationships with their suppliers. By doing so, businesses can weather these stubborn trends and continue to thrive in an increasingly challenging business environment.
Customer Experience Leaders Need to Get Proactive!
Customer experience leaders are sometimes in a position to just wait. Wait for customer feedback. Wait for insights and analytics. Wait for executive buy-in.
The C-suite is not waiting to hear what’s next. They are already concerned about these issues and might start looking at customer experience initiatives as “cost centers” instead of proactive approaches to overcoming these challenges.
It’s time for CX leaders to speak the same language as their C-suite and address these challenges head on.
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