The economy is slowing. Everyone knows it. On Tuesday the RBA reduced interest rates by .25% as predicted and the experts say there's more to come. Various commentators are offering their thoughts about how businesses will cope during the economic correction. Now it's my turn and I invite your comments.
I read an article written by journalist Frances Stewart on Tuesday, the same day as the interest rate reduction. The article addresses the need for franchisees and franchisors need to work together to get through this adjustment. Franchisees are obtaining additional working capital and are going to the banks to obtain it. Have a read of Frances' article by clicking here.
I was particularly interested in the sustainability of the approach Fracnhisees will obviously need to increase revenue to fund this or else reduce profitability while they “ride it out”. The question is how!
I think the answer lies in making a difference. A working knowledge of the emotionality of customer service excellence will be essential for customer retention and business growth. Consumer hesitancy, (and "buyer remorse"), to purchase can be overcome if businesses understand the psychology of customer engagement.
Last week I was speaking at a franchisor award dinner. They had a clear focus on making a difference for their customers by excelling at customer service - I guess that's why I was speaking there. It was a priviledge to share with them on that occassion.
What will you be doing differently to make a competive advantage during the tougher times?
