While inflation and dicey economic conditions are a major concern, 61% of small business owners surveyed by the US Chamber of commerce have a positive outlook on business for 2024. Even with the rosy outlook, more owners reported a decline in profitability versus growth at 39% and 31% respectively. Customer driven businesses could be facing a reduction in traffic and possibly a decrease in potential spending, but owners can definitely count on increasing costs which can easily erode profitability in a cascade of negative inputs. For 2024. owners and managers are looking at three major operational areas to drive sales, control costs and increase profitability during uncertain economic times.
Focusing on the Customer
In reality, all customers are important, but when there are limited customers, they become that much more important. Every customer interaction should be regarded as a valuable asset and maximized to its full potential. Looking at the customer experience in detail can reveal opportunities for increasing that particular transaction. Researching online reviews and opinions can also offer clues to the customer experience. 2 questions every owner or manager must ask when working with the business’ customer service culture:
- Are the businesses’ customer service procedures and policies customer friendly?
- Does the frontline team have the resources and training they need to deliver exceptional customer service?
Each customer interaction, either via contact center or in person visit, should be considered a sales opportunity and positive customer experiences will help maximize each interaction.
Get More From the Team
Slower times or declining business can also take its toll on team morale and motivation. Investing time and attention to frontline staff can keep them engaged and productive while increasing productivity and efficiency. After looking at the customer service experience, are there skills that frontline and contact center staff could use to improve that interaction? Mini training and huddles are a perfect way to deliver new and simple techniques to drive sales from each customer interaction. Managers may also consider teaching employees new skills that are outside their usual job duties. Key players may be hungry to learn other aspects of the business. Staff development will always be a major contributing factor to employee job satisfaction, increased motivation and high morale. Owners and managers will certainly highlight human assets in 2024 as operational efficiency becomes a major priority.
Marketing Outside the Lines
Social media can invoke certain feelings in many different people but from a business perspective, it is essentially free marketing. Like it or not, social media platforms are here for good and many people use these sites frequently throughout the day as a means of ‘staying connected’. This gives small and medium sized businesses a way to market their brand with very little or no cost at all. Time and effort (and a smartphone with a really good camera) are the only investments needed to create a short and entertaining marketing message for social media outlets. Apps like TikTok and media such as Instagram Reels are proving to be an economical way to build brand momentum as well as provide customer engagement outside the location.
The Bottom Line
Small and medium sized businesses have a distinct advantage over their larger counterparts, the ability to identify opportunities quickly and pivot just as fast. With potential economic challenges ahead, owners and managers are considering all aspects of the business and are looking for ways to improve line items. Creating positive and unique customer experiences would increase individual spending and provide priceless word of mouth marketing. Businesses will always see benefits when frontline staff such as contact center and retail representatives have upgraded skills training. Non-traditional marketing will also continue to grow through 2024, giving small and medium sized organizations another avenue to build market presence.