As we move forward into the next phase of the “virus economy,” we’re seeing instability and uncertainty in many markets. In those markets, customer needs are changing dramatically – sometimes leading the customer to exit the market entirely – and businesses are struggling to adapt to meet the changing needs. However, it’s not all bad news out there.
Markets still exist.
For existing customers, some are growing their spend, some are shrinking their spend, some are switching suppliers. It’s critical to know how they’re changing and why.
For example, one LRC client saw steady numbers in January and February. However, March brought a loss of 38% of their revenue from B2B customers, primarily in the Restaurant segment. Several factors are becoming more important to the remaining customers, including how to reduce the total cost of using the product/service without cutting into the core value provided. If our client does not figure this out quickly, one of their competitors will.
Opportunities still exist and new ones are emerging in the market.
Questions you should be asking yourself: Who are the customers that are looking for a new solution? How do we fit with those needs?
Another LRC client is expanding into new geographies with an innovative product/service mix. Even though they have a vastly superior offer for many customers, their resources have been reduced and they want to be more deliberate about allocation. They need to be more efficient than before and are looking to target new customers to focus their efforts. Which of the prospects are the best targets?
As we seek to examine the new needs in the market, one tool to add to your arsenal is our proprietary Loyalty Payoff Table. It’s a great visual to examine your customer base, prospect base, and segments therein.
If you need help examining your own changing market, reach out. We can help.
President & CEO
Loyalty Research Center