In these uncertain times for SMEs, insights from Camille Flores-Kilfoyle, Head of Marketing, EMEA, Reputation, offer invaluable guidance amidst the current volatility
It’s no surprise that there are mixed feelings in the SME community about the prospects of 2024. Research from Slack last month revealed that 40% of small business owners see 2024 as a ‘make or break’ year – and 38% even said they were more worried about their business as they entered 2024 than they were at the same point last year. Even with some of the changes announced in the Spring Budget, such as the increase in the threshold for VAT 
registrations, and changes to personal finance, SMEs are still dealing with an environment where consumer confidence is fluctuating and the year ahead feels volatile. In such trying moments, SMEs need to readdress their customer strategies, and it doesn’t have to be complicated.
The pivotal role of customer sentiment for SMEs
According to recent statistics, a staggering 90% of consumers will not make a purchasing decision without looking at online reviews first. So, for SMEs with smaller and often more attentive customer bases, the repercussions of a negative review or bad experience are particularly significant and cannot just be swept under the carpet. In this context, strategic planning becomes paramount, and it is vital to understand your businesses strengths and weaknesses to mitigate the adverse effects of subpar customer experiences.
Listen to your customers
When it comes to understanding and listening to your customers, there is such a vast amount of data available. Everything from social media to online reviews to surveys and business listings can offer insights into how your customers feel about your business and how they perceive it. Listening to and digesting this data can lead to valuable actionable insights.
Take a local car dealership for instance, an analysis of all these customer touchpoints could reveal an area in which a dealership is struggling to meet customer expectations. Be that salesperson interaction or delivery times. By harnessing all the data available from multiple customer touchpoints, the business can set internal benchmarks for performance, from identifying areas of excellence to those in need of improvement. It can also help to guide marketing investment to the areas that will have the most impact, such as addressing online presence, altering communication themes, or meeting customers where they are interacting with your business.
While large organisations might have dedicated customer experience teams whose entire role is focused on harnessing this data, SMEs don’t often have this luxury. So, the key for SMEs is not to overcomplicate it. Focus on the basics, listening to feedback and taking real-time action are the key drivers for success.
Prioritise employee feedback
In today’s hybrid and often digital-first world, customer sentiment and employee satisfaction are one. In fact, 73% of consumers will switch to a competitor after bad customer service interactions. Leaders, especially in SMEs facing talent retention challenges play an essential role in employee engagement. And again, it doesn’t have to be complicated.
To start, just as it is important to act quickly on customer feedback, the same principle should be applied for employee feedback. Regular surveys offer invaluable insights for fostering a positive culture and creating a supportive work environment. They can also easily help businesses to address areas in which training is required. Employees with the right skillset will be best positioned to understand and act upon the vast amount of customer data out there.
Brands committed to nurturing and empowering their workforce lay the groundwork for future success in delivering unparalleled service in a world where customer and employee experience are one.
A 360 approach
In summary, the challenges faced by SMEs in 2024 emphasise the critical role of customer experience as a key determinant of success. Taking a strategic and comprehensive approach to this is now table stakes. Employing technology, such as advanced data-driven metrics, empowers SMEs to effectively grasp and address both customer feedback. In navigating the digital age, a holistic CX strategy, embracing both customer and employee perspectives, establishes the foundation for enduring success and brand loyalty. It equips SMEs to navigate the intricate business landscape with resilience and adaptability.