Inflation is going to kill my Customer Experience, what do I do?

The gas pump is probably where it hurts the most right now. Standing there, watching the total spin by, climbing higher than you ever have seen it before brings home the acute pain of today’s inflation rate. Never mind that housing and health care have much higher cost increases over the past decades…that gas price per gallon is hard to take. 

Inflation has been rising steadily across the board for the past few months. So much so, that experts, who were not concerned in the beginning are starting to worry. While there is reason to believe it will peak soon, no one knows if pricing will go back down. 

Stephanie wrote to us about her Business Pickle that inflation is going to kill her CX. Chances are, you are facing some difficult pricing and cost concerns yourself and wondering what it is going to mean to your experience, too. 

This episode focuses on how you can manage the current economic environment without destroying your Customer Experience. Will our new, post-pandemic normal have a high price tag associated with it? And what does that mean for your customer experience?

Key Ideas to Improve Your Customer Experience

Believe it or not, from an economic perspective, all inflation is not bad. To the contrary, inflation serves the broader economy. It might surprise you to learn that the Federal Reserve Bank (the Fed), the U.S. governmental institution that manages the economy, wants inflation. However, the Fed wants a steady rate of around two percent. That slow but steady rate encourages consumer spending and investing rather than hoarding of resources (I’m looking at you, Bitcoin.). However, the inflationary rate is climbing faster than that, which is where some financial experts have concerns. So, to summarize the governmental policy on inflation: a little bit is okay, too much is concerning.

Here are a few other key moments in the discussion:

• 03:56  We share Stephanie’s pickle about how to respond to rising costs but maintain a customer-centric experience.
• 05:32  Ryan explains how a little inflation plays in maintaining a strong economy, and how too much of it can destroy it. 
• 09:21  Colin shares a personal experience with inflation regarding a garage roof project he got a quote for nine months ago, which now is significantly more.
• 12:56  Ryan explains how inflation can affect the customer relationship and erode trust if it’s not handled properly.
• 16:34  We share some of the things you shouldn’t do in this situation, because they contribute to the erosion of trust and the degradation of your experience outcome. 
• 21:33  We both have suggestions for how Stephanie can handle this with her customers to the best possible outcome.   

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Customer Experience Information & Resources

LinkedIn recognizes Colin Shaw as one of the 'World's Top 150 Business Influencers.' As a result, he has 289,000 followers of his work. Shaw is Founder and CEO of Beyond Philosophy LLC, which helps organizations unlock growth by discovering customers' hidden, unmet needs that drive value ($). The Financial Times selected Beyond Philosophy LLC as one of the best management consultancies for the last two years. Follow Colin on LinkedIn and Twitter.

Click here to learn more about Professor Ryan Hamilton of Emory University.