Consider the current economic environment in the United States: gasoline $5 a gallon, inflation approaching 9%, huge price escalation in all consumer purchase categories, supply chain stockouts, the stock market in bear territory, a total lack of political leadership, and a recession imminent in the U.S. (This is not to say that things are great worldwide, as well). This market reality follows two-plus years of Covid lockdowns and restrictions. SMEs as well as giant corporations are facing unprecedented challenges in finding/keeping good employees and coping with large cost increases. Companies that survived fought back Covid and financial challenges by adapting to the new and difficult market issues and by being customer-obsessed.
According to Forrester Research, a customer-obsessed enterprise “focuses its strategy, operations, and budget to enhance its knowledge of and engagement with customers.” They add that customer obsessed organizations are customer-led, insights-driven, fast, and connected. For further insights on customer obsession and Covid-19 responses, read articles 2 & 24 from the Customer Value in the Now Economy blog.
Chauvet Lighting manufactures lights and special effects equipment for venues such as concert arenas, nightclubs, theatres, and megachurches. Given the Covid-19 pandemic, like many businesses, Chauvet was forced to pursue new market opportunities such as drive-thru events such as concerts, comedy shows, and haunted houses. Other new ventures have included the production of social media content and educational videos targeting out-of-work lighting designers and repurposing video walls.
The global pandemic forced companies to rethink all business and marketing strategies to survive. This is particularly evident in the services sector which accounts for about 75% of the Gross Domestic Product in industrialized countries. Airlines, hotels, restaurants, retailers, small businesses, and universities are some of the industry sectors that had to quickly pivot to compete effectively in a new world slowly emerging from lockdowns and characterized by social distancing, contactless transactions, customers wearing face coverings, and virtual meetings.
Companies that were able to make this transition seamlessly in the Covid economy succeeded because they refused to fail and are truly obsessed about their business and customer base. They are willing to do whatever it takes even if it means struggling in the near-term to prosper over the long-term. Innovative universities offered blended learning which includes reduced capacities in the classrooms (20-33%), Zoom lectures, video recordings, and increased online instruction.
Restaurants provide an excellent case in point. Many “mom-and-pop” restaurants are micro-enterprises with twenty or fewer employees. They already are challenged by high costs (food, rent, equipment, etc.), labor concerns, local and federal regulations, and direct and indirect competition. Traditionally, they have one of the highest business failure rates in normal and good economies. In the Covid era, great food, superior service, and fair prices are no longer enough in determining winners from losers. A customer-obsessed mindset calls for adaptive and innovative business practices. Successful restaurants quickly embraced reduced indoor seating, outdoor dining options, curbside pick-up, delivery service, and contact-free credit card payments. In addition, they realized the importance of retaining existing customers and treating them as a special friend or family member, emulating Japanese style customer service. Other marketing tactics include new menu offerings such as family packs and comfort foods. Promotional strategies have to be more creative and often emphasize social media, price incentives such as BOGOs (buy one meal, get one meal free), and Covid-friendly giveaways such as branded face masks or trial-size hand sanitizers. One enterprising pizzeria even gave their customers a free roll of toilet paper with every pie ordered!
☑ Questions to think about
1. Is your company customer naïve, customer aware, customer-committed, or
customer-obsessed?
2.
Explain specific ways that your marketing strategy is customer-obsessed?
3.
How can your company become even more customer-obsessed to create exceptional
value and compete successfully in the
Now Economy?
* Art Weinstein, Ph.D., is the blogmaster and a Professor of Marketing at Nova Southeastern University. He may be contacted at art@nova.edu
This article was very eye-opening since it highlighted how crucial it is to adapt a business’s marketing strategy as a result of changes such as COVID-19. While this article focused on how businesses struggled to survive during a pandemic, I feel that these strategies should be consistently implemented in all businesses to improve their success. Also, it would be interesting to analyze successful marketing strategies that have been used in the past during inflationary economies.
ReplyDeleteThis blog post is an incredible reminder to businesses and a good lesson for up and coming entrepreneurs. The COVID pandemic brought to light, that in order to succeed in business, you need more than just a good product or service. The businesses that survived and/or thrived during these difficult times are the ones that acted fast, connected with their customers, and found ways to put them first, even if it means short-term pain for long-term gain.
ReplyDeleteThis article really does emphasize that adaptation and a customer based mindset is extremely beneficial to the survival of businesses, new forms of treating customers and understanding their wants and needs plus providing a family like environment thats always happy to see them does genuinely keep people coming back for form and at the end of the day thats exactly what we want.
ReplyDeleteThis article goes in depth about combating the economic and financial problems that some companies faced due to covid. Companies that survived these challenges by adapting to the new and difficult market issues and by being customer-obsessed. Understanding what customers wanted and needed was the game changer that allowed some businesses to stay afloat while the others vanished.
ReplyDeleteThis article shows how it is important for businesses to adapt to the environment. One of the biggest cases is the powerful effects of the COVID-19 pandemic, where business owners needed to acquire a customer-obsessed mindset. This mindset let business owners lead a successful business in a difficult time. The businesses that made these adaptations made their customers feel welcomed and safe.
ReplyDeleteThe article talks about the past economic environment in the United States and how it was challenging due to high gas prices, inflation, supply chain issues, and even lack of political leadership. Many businesses were struggling to find and keep employees while having to deal with rising costs. With no other choice, companies had to adapt to the new market conditions and become customer-obsessed, focusing on enhancing their knowledge of engagement with customers. The pandemic forced companies to rethink and remodel their business and marketing strategies, particularly in the service department, which accounts for about 75% of the GDP in industrialized countries. The companies who seemed the most success were willing to do whatever it takes to see success over the long-term, including embracing reduced seating, outdoor dining, contactless transactions, and creative marketing tactics such as BOGOs and giveaways live seen in the article.
ReplyDeleteThis article provides an overview on financial and economic situations which have happened to the companies on how Covid-19 was affecting them. Therefore a lot of business had to change their approaches and mindsets in order to be successful in their areas and not loose customers. Additionally, they had to change their approaches and become more open minded in order to now get destroyed by Covid-19. As well as promotional strategies had to be changed for the businesses.
ReplyDeleteThis article talks about how COVID-19 had an affect on business and how business had to readapt themselves in order to be able to work. Specifically talking about the economic and financial problems that some companies had to figure out, therefore during COVID-19 companies had to be more open minded. Businesses had to reevaluate all of their marketing and business plans in order to survive. This is particularly evident in the services sector, which accounts for about 75% of the GDP in industrialized countries. Some of the businesses failed, but those that managed to adapt to the Covid economy successfully did so because they wouldn't give up and were genuinely fixated on their customers. The companies that responded quickly, stayed in touch with their clients, and discovered ways to put their interests first, even if doing so meant sacrificing short-term comfort for long-term gain, are the ones that have endured and/or thrived during these trying times.
ReplyDeleteThis article discusses how companies that were customer-obsessed were able to succeed during the COVID-19 pandemic. The author discusses how companies have had to leave traditional marketing tactics and adapt to the new and changing economic environment. The author argues that companies that focus their attention on customers are more likely to succeed in this new economic environment.
ReplyDeleteThis article was very interesting to read because it did a great job of explaining how businesses had to fight the struggles of the COVID-19 pandemic in order to keep their business alive. Many businesses had to adapt and change to a customer-based mindset in order to succeed. This allows them to focus more on the customer in order to make them feel safe in the world. This meant struggling in the short-term in order to stay afloat in the long-term. Some examples meant reduced capacity, which in the short term means less business. However, when customers felt safe and welcomed, they would go back to the same business. Many businesses that did not learn to adapt unfortunately are no longer around.
ReplyDeleteThe study addresses the difficulties businesses face in the US's post-Covid inflationary environment and how those businesses that overcame these difficulties by becoming customer-obsessed have found success. In order to meet evolving consumer demands, businesses have modified their business plans and marketing methods. Examples given in the article include restaurants that offer decreased seating, outdoor dining alternatives, and contact-free payments. The post focuses on how crucial it is to win in the present market by being customer-led, insights-driven, quick, and connected.
ReplyDeleteThe main takeaway from this article is that companies need to prioritize their consumers in trying times, like the Covid-19 pandemic. They should be willing to adapt and innovate to meet changing customer needs. Whether it's Chauvet Lighting exploring new markets or restaurants offering outdoor dining and contactless payments, successful businesses focus on keeping their customers happy and go the extra mile to do so. In a rapidly changing world, being customer-obsessed can be the key to long-term success.
ReplyDeleteThe main takeaway from this article is that companies need to prioritize their consumers in trying times, like the Covid-19 pandemic. They should be willing to adapt and innovate to meet changing customer needs. Whether it's Chauvet Lighting exploring new markets or restaurants offering outdoor dining and contactless payments, successful businesses focus on keeping their customers happy and go the extra mile to do so. In a rapidly changing world, being customer-obsessed can be the key to long-term success.
ReplyDeleteCovid-19 was unexpected and had a big affect on business. This article explains the 360 business had to make to adapt with Covid-19 being around. Their main focus was innovating to meet their customers needs and willing to make these changes to adapt. Zoom meetings, curbside pick-up, and drive through events are a few great ideas created to keep consumers satisfied and adjust to the new pandemic life.
ReplyDelete