The valuable personal relationships that emerge from prioritizing customer engagement can mean the difference between success and failure. CRM is vital for all brands and industries, but it is especially important for the smaller businesses that are still struggling to find stability after 2008’s near unprecedented market crash.
The after effects of the Great Recession continue to echo in the minds of many, and for a majority of small business owners, a full recovery has yet to be achieved. Admittedly, the challenges they face are legion. But even in spite of the numerous difficulties, these small business owners are still very optimistic and confident about the future. As a result, most are willingly embracing and prioritizing self-sacrifice, employee satisfaction, and the customer experience as strategic mechanisms for success.
These were the results and impressions gleamed from Bank of America’s 2015 spring Small Business Owner Report. After surveying 1,000 entrepreneurs, it found that nearly seven years after the Great Recession, 64% have not yet fully recovered. However, these findings also came married to a high degree of hopeful tidings as 63% believed profits would increase in the next year and 66% believed growth would occur within five years.
This optimism speaks to the high level of importance these small businesses are placing on the value of the customer experience and in building personal customer relationships. Over half (57%) perceived an increase in repeat businesses after strengthening the relationships that attract and retain consumers. In this respect, appreciation was seen as a primary driver of customer loyalty.
Overall, this customer appreciation was key, but the ways in which it was manifested varied. Monetary incentives and exclusive event offerings were found to be the most common form of customer rewards. 29% relied on these mechanisms. Free products and services were a close second at 28%. Bank of America’s report found that small businesses also relied on social media promotions, rewards for referrals, personalized gifts, and an array of loyalty programs to attract and retain customers.
Additional attempts to overcome the protracted effects of the Great Recession showed a redoubling of efforts to reward and appreciate employees as well. This tactic was almost universal as 94% currently have some form of employee appreciation program including instant bonuses, efforts to recognize office excellence, extra time off, and additional raises and promotions.
What’s more, 67% of small business owners looked to self-sacrifice to help drive growth. The report found that most have postponed their own compensation in order to instead reinvest in and focus on rewarding customers and employees. This included regularly putting in extended overtime hours without any additional pay raise. And, in some cases, they have even willingly taken a pay cut.
“Small business owners are optimistic about the future and are working extremely hard to achieve success,” said Robb Hilson, Bank of America Small Business executive. “As they have focused on recovery, many business owners have embraced a mindset of self-sacrifice. They are prioritizing their employees and customers above all else and it is often at the expense of their own personal or financial well-being.”