Evolving Through The Next Normal – Focus on Customer Value
As business leaders reacted and adapted quickly from the shock of COVID-19, we now move into the next phase as companies return to work. Businesses need to pro-actively build upon their new foundations to ensure success for the next year ahead and beyond, and emerge through future uncertainties even stronger.
We outline three key areas that many businesses will now focus on during the next normal.
- Eliminate the cost of inefficient systems
Review non-value adding activity such as sub-optimal processes, inefficient systems in place, and the role of automation in standardised activities to ensure that you are not wasting time, and, by extension, money on all the things that don’t need to be done.
- Increase customer base
Many companies will be aggressively targeting new customers both by adding additional value to existing products and services, and increasing their sales and marketing activity. This works within existing markets and diversifying across new ones.
- Retain customers and maximise customer lifetime value
The acquisition costs for each new customer is far higher than those in retaining existing customers. Delivering excellent products and services to delight your existing customer base establishes stronger connection, loyalty and trust. This makes it harder for competitors to lure them away.
Providing additional complementary products and services to your portfolio will also increase the lifetime value of the customer to you. Collaboration with other companies to meet the entire start-to-finish customer journey is a valuable strategy to prevent your customers being attracted to your competitors.
Our Service Redesign package will review these three areas, with improvements being identified and implemented throughout a typically three to six month project.
- We determine what value-added products and services will meet the change in customers’ behaviour and requirements
- We identify processes to best deliver services and the most efficient staff structure which underpins this.
- We build additional capability and flexibility in your workforce, strengthening your organisation to react to future shocks or respond to future opportunities.
Our collaboration partners specialise in the Sales and Marketing to provide a one-stop shop review and transformation
A recent client we worked with during lockdown focused their services and delivery to such an extent that they had 30% more capacity, with no additional staff required.
The increasing capability and flexibility of their workforce meant they could redeploy their staff to deliver the products and services most in demand without needing any additional changes. In total they increased their client base by 20% and increased their lifetime value per customer by an additional 10%. They are currently operating at 95% capacity and utilising the spare time for innovating new products and services to trial with their existing customers.
Emma Shenton is Director and Business Change Ninja at Oakwood Management Consulting, supporting businesses navigating the current situation and delivering a reorganisation that delivers successful, sustainable business change.
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