Customer Relations Are Stronger Than Ever
The old saying goes, “It takes months to find a customer but only minutes to lose one.” What about when a crisis changes the way we communicate almost overnight? The latest business disruption saw organization replace most face-to-face interactions with Zoom, Teams and other technologies.
In this edition of Navigating Disruption, we heard what regional business leaders had to say about everything from daily conversations with customers to negotiating major deals during a global crisis.
Continuation of a growing trend
We spoke with the president of a Minnesota bank holding company who reflected on how the recent disruption propelled an already growing trend in the industry: more reliance on digital communication.
“We had already established an online presence where you can do virtually everything you need to do with our bank online … I see branch traffic and face-to-face interactions slowing down permanently.”
They went on to explain that maintaining customer trust can still be done over the phone or online:
“Our customers know who to call and they know that no matter what method of communication, whether it’s email, phone or video conference, those employees of ours are attentive to their needs, immediately. I think there’s still a way to build that personal relationship without shaking a hand and being together in the same room.”
Indeed, the idea of a growing trend toward virtual communication was echoed by the executive vice president of another Minnesota bank.
“The way we’re interacting with customers is going to change, and it already had been changing prior to all this stuff. Just generally speaking, lobby traffic and customer flow traffic into bank branches has been slowing and diminishing as technological changes and demands and efficiencies have been made. That was already well-laid, and it was very easy to see that on a chart, and I think because of all this stuff, it only escalates from here.”
The disruption, however, laid bare some areas for improving online services:
“We didn’t have full e-signature capabilities for certain types of accounts. We didn’t have an efficient way of doing larger face-to-face meetings with customers or other vendors … We knew these things had to be addressed.”
Customers welcome new technologies
The president and CEO of an insurance company with operations across the country noted that even customers who would normally be less receptive to virtual communication methods have been adopting them:
“There’s a certain demographic of people that would just as soon pick up the telephone, or just stop by the agent office and do business, right? Well, this time has forced them to take advantage of our mobile app or go online and make a change for themselves or pay their bill.
“And they said, ‘Well, that wasn’t so hard. As a matter of fact, that was pretty convenient. I’m no longer going to stop by the agent’s office and drink a cup of coffee and pay the bill. I’m just going to go online and do it.’”
Hard times. Hardier partners.
Even through the latest disruption, organizations found ways to make major deals with clients. The head of a Midwestern commodities company explained why negotiations are more difficult from a distance.
“We did a lot of our negotiations over technology, and I will tell you it makes them harder. People can’t see your face and how sincere you are about the business and pricing and why they should make a decision. It just gets really tough over technology to build a relationship.”
They mentioned both the highs and lows of the disruption – some customer relations have come out stronger while some have ended due to insolvency:
“Our customers are very happy with how we’re producing. They tell us we’re producing better and faster than other companies.”
But on the opposite end of the spectrum:
“We’ve had smaller customers go belly-up in an eight-week period.”
The financial threat of this disruption can’t be denied. The CFO of a regional manufacturer of heating ventilation and air-conditioning systems spoke about their organization’s approach to making more flexible deals with long-time clients in the health care industry.
“If we can help a partner through a tough spot, it creates more goodwill with them … For example, we do a shared savings agreement: We come in and do front-end work and we won’t charge you, but we get 50% of the savings over the next three years. So, it gives them an opportunity to reduce their spend and fund our work through their savings for cost avoidance.”
Key takeaway: work to solve your customers’ problems
If there was one consensus among leaders we spoke with, it centered on maintaining honesty and transparency with customers through crisis. Doing so, they said, means coming out on the other side with even tighter bonds.
The CEO of a Midwestern potato-growing operation summed it up nicely:
“I see opportunity. If you deliver in times of the crisis, that’s how you build … Yes, there’s the face-to-face component, but I think we live in more of a results-oriented world than sometimes we even want to admit. Our focus is more on ‘hey, how do we solve their problems?’ You do that and you’re going to make a lot of friends.”
We hope you found worthwhile insights in this article. For more, read other articles from our Navigating Disruption series.
Thanks,
PRIME46
Are you a business leader seeking to adapt, change and grow following a business environment disruption? Let’s talk about how Prime46 research and strategic advice can help.