How To Improve CX in the Supply Chain Crisis Era
While brands can’t control the ramifications of the supply chain crisis, they can control how they react to those ramifications and, most importantly, how they respond to their customers.
Supply chain disruptions have forced brands to make changes that result in a poor customer experience (CX). In this article, Eran Gilad, Fuel Cycle’s president and CEO, shares market research methods that can improve CX amid the supply chain crisis.
With employees working in both in-person and remote environments and events, like conferences being held in venues and over Zoom, the world has essentially entered the hybrid era. Even businesses today can’t escape the hybrid world, having one foot in the physical (brick-and-mortar stores) and the other in digital (e-commerce).
This omnichannel approach to selling has enabled consumers to have options for how they prefer to shop. If an item isn’t available in-store, consumers can hop online, where they may have more success finding and purchasing it. But while this hybrid approach has made the buying experience easier for shoppers, the ongoing supply chain crisis threatens to make things more difficult.
See More: Supply Chain Evolution: From Containerization to Computerization
The Impact of the Ongoing Supply Chain Crisis
While brands can’t control the ramifications of the supply chain crisis, they can control how they react to those ramifications and, most importantly, how they respond to their customers — a critical need since customer experience (CX) is declining.
Since 2020, the supply chain has been plagued by disruptions, like labor shutdowns, high consumer demand and product shortages, creating problems on a global scale. For instance, supply chain challenges have caused some restaurants to discontinue certain menu items and even charge an extra fee for sauces — changes that weren’t popular with customers.
The microchip shortage has similarly wreaked havoc on both automotive and technology. With few microprocessors to power more vehicles and next-generation gaming systems like PS5s, manufacturing of these items was brought to a standstill, resulting in low inventory, skyrocketing prices and unhappy consumers. And with the chip shortage expected to last into 2024, these issues show no sign of slowing down.
The Declining Quality of Customer Experience
A good CX – how users interact with a business’s touchpoints – can be a key differentiating factor between a brand and its competitors. Simply put, if customers enjoy an experience they get from a brand, such as excellent customer service, easy-to-navigate websites and consistent quality, they’ll choose that brand over the competition. But the supply chain crisis has put CX in jeopardy for brands everywhere.
According to research from Forrester’s US 2022 Customer Experience Index, CX quality fell for 19% of brands. Additionally, the score for brands rated “good” decreased from 25% to 22%, while the scores for “poor” and “OK” ratings increased. Due to the current macroeconomic climate, some companies haven’t been able to maintain the quality of their CX, hindering their relationship with key audiences.
To repair CX, successful brands recenter the customer by understanding who they are and what they desire in an experience. Market research methods like agile research, innovation testing and competitor tracking can help brands exceed customer expectations and improve CX.
Agile Research
Understanding what customers want at any given moment in their buying funnel is the only way for brands to provide products, communications and services that resonate with them. This is especially important in today’s fast-changing digital world, where trends and consumer behavior are ever-evolving. Brands need to be able to keep up with these changes in real-time to ensure they remain competitive. To do this, brands require agile research.
With agile research, companies can collect data from customers and lookalike audiences based on their needs and wants, adjusting their products and services according to that data. As a result, brands can quickly make decisions that will lead to long-term success because business decisions are formed around the customer. Implementing agile research leads to new products being launched quickly, changes to existing products being made swiftly and new ideas being vetted more efficiently.
Agile research also takes the guesswork out of what a customer wants by providing continuous feedback. For instance, if a streaming platform discovered that its users couldn’t easily find new shows, it could conduct agile research to determine exactly what users want. With that actionable insight in hand, the streaming platform can incorporate that data to create a better experience for its users. This could mean revamping the home screen to cut down on search time and increase awareness of new shows, improving its CX.
Innovation Testing
Innovation is crucial for all companies to remain competitive and relevant. Failing to do so can cost a company its market share and customer favor. However, innovations shouldn’t be made blindly, which could lead to products/services customers don’t want. Brands should deploy innovation testing to see how their target consumers will receive any changes.
With innovation testing, brands can test new business ideas, services, campaigns and offerings before launching to the public. This enables more data-driven strategies and decision-making that align with customer preferences, needs and wants as they evolve.
See More: Supply Chain Evolution: From Containerization to Computerization
Competitor Tracking
Staying on top of trends is essential for ensuring brands don’t become outdated. One source of inspiration can be a competitor. Being plugged into what competitors are doing can inform ways a brand’s product or service can be improved. Competitor tracking makes this possible.
With competitor tracking, companies can understand key industry players, their customers’ likes and dislikes about a competitor’s products, shifting customer expectations and even their marketing strategies. This wealth of information can help brands know the adjustments they should or shouldn’t make to their products, keeping their offerings fresh and appealing to customers.
The supply chain crisis has created a domino effect in industries everywhere, which has resulted in the decline of CX. To win back customers, brands need to understand their wants and needs through agile research, innovation testing and competitor tracking. By doing so, brands can get their CX back on track and give their customers a product or service that hits the mark with them.
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