Introduction The Peak-End Rule (PER) is a concept in behavioural psychology that suggests people...
As a retailer, you may be facing numerous challenges due to the current cost-of-living crisis. This economic shift has caused a ripple effect that is affecting customer experience in many ways. Let’s explore some of the CX issues that these circumstances have exacerbated and provide practical solutions to deal with them.
Issue 1: Decreasing Customer Loyalty
The financial constraints caused by the crisis have made it difficult for consumers to remain loyal to a particular retailer. To overcome this, it is recommended that you redefine your loyalty programmes to offer immediate benefits. Provide instant cashback, in-app offers, and loyalty points that can be redeemed on the same day. The sooner the reward, the more likely you are to retain customers.
Issue 2: Complaints and Negative Feedback
Increased prices and reduced service levels have caused a surge in customer complaints. To tackle this, it is essential to address complaints quickly and decisively. Implement an automated complaint-handling system that prioritises issues based on severity and immediacy, leaving skilled human personnel to handle more complex cases.
Issue 3: Recruiting Quality Talent
The cost-of-living crisis has made it challenging to attract quality talent. Instead of broadening your recruitment net, focus on individuals who align with your brand values. You may be able to offer slightly higher salaries if you save on training and integration costs in the long run.
Issue 4: Engaging Colleagues in the Customer Experience
Motivating colleagues to deliver excellent customer service can be challenging, especially during tough economic times. To overcome this, capitalise on intrinsic motivation. Leverage team-building activities that centre around customer service scenarios and create an "Employee of the Month" style recognition system based on real-time customer feedback.
Issue 5: Attracting New Customers
Acquiring new customers has become increasingly difficult due to the current crisis. To overcome this, focus on targeted social media campaigns highlighting customer testimonials and stories. Showcase your brand's value proposition in an era where value is becoming increasingly important.
In conclusion, the cost-of-living crisis may have created obstacles in your retail business, but it also presents an opportunity for innovation. You can turn today's challenges into tomorrow's stepping stones by implementing the outlined game plans.
