With the current slowdown in GDP growth, many CMOs, CCOs and CFOs are struggling to identify opportunities and invest in a cost-efficient manner that achieve sustainable growth. We have identified 5 key customer-facing opportunities and 2 critical enablers that can help organizations stay competitive during and after this time of uncertainty.
Economic downturn provides a prime opportunity to invest capital for long-term sustainable growth. However, with current global fluctuations in GDP, accelerated inflation, and geopolitical instability, the collective mindset is understandably cautious. Consequently, for many CCOs CMOs, and CFOs, adopting a growth mindset has become more difficult, and they instead opt for temporary contingency plans to stay afloat in rough waters.
While this approach seems pragmatic on the surface, the most instructive success stories from periods of market turmoil can actually be found in companies that confronted strategic challenges head-on and leveraged them as pivotal opportunities to build a foundation for future growth and innovation.
To achieve sustainable growth, it is important to adjust your strategy and avoid decisions solely based on short-term market fluctuations. We have identified 5 key customer-facing opportunities that help organizations stay competitive, and 2 enablers that are critical to develop innovative solutions.
Opportunity 1: Don’t leave money on the table
Pricing and Revenue Management
Did you know that for every €100 million in sales revenue, there is big chunk lost to margin leakage or untapped growth potential? We have identified value leakages and growth drivers based on industry benchmarks and what can help companies to recover anywhere between 1%-1.5% of total revenue within months.
Opportunity 2: When change is the only constant, innovation is the winning formula
Innovation Excellence
Previous recessions demonstrated that companies that balance their strategy well with both improving operational efficiency and investing in new business opportunities, R&D, marketing or assets showed the highest profitability among others. How can organizations build their internal innovation muscle?
Opportunity 3: Unlock growth from the core and beyond
Growth Strategy
Did you know that ~9% of companies, not only coped during times of economic shock but flourished? Their secret? They did not rely only on defensive strategies, like cutting costs but also focused on understanding the occurring changes in consumer behavior that prepare them to thrive after the crisis.
Opportunity 4: Shake things up and stay ahead of the game
Venturing and Proposition Design
When economics appear to be uncertain, what can companies do to ensure resilience in the long run? Companies can benefit from committing themselves to create long-term competitive advantages by reinventing their business models and value propositions.
Opportunity 5: Engaged customers are loyal customers
Service Strategy and Design
Did you also start perceiving customer service as an attitude? When customer service is done right, leveraging the technology for organizations to gain better insights can further improve Customer Success Management and customer satisfaction.
Enabler 1: Capitalize on data-driven insights
Customer Intelligence
How can companies balance the need to target specific customer segments with the potential risk of alienating other segments? How can organizations leverage customer data to better tailor their products and services? A study found that those who do so have seen a 10% annual growth rate increase, compared to those that do not.
Enabler 2: The philosophy of human-centric design
Experience Design
How can companies create a frictionless, end-to-end process for their customers and employees? Embedding the philosophy of human-centric design into an end-to-end, frictionless process can enable organizations to have higher revenues and deliver outcomes 2x faster to the market than others.
To learn more about each opportunity and enabler with real-case examples, please download the full report here.
Co-written by Husam Demir and Margo Hsu.
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Get in touch
Chris Vialle
Chris is a Partner in the Monitor Deloitte practice, based out of Amsterdam. Chris is focused on Strategy and Strategic transformation within Banking, Payments and Fintech in the Netherlands and across Europe. He is part of the global Commercial Banking leadership team and leads the Customer Strategy and Design offering (100+ FTE) in the Netherlands. Before (re)joining the Amsterdam office he was part of the New York and Copenhagen offices serving clients in EMEA, North America and Asia.
Bram Lentz
I am proud to be a partner at Deloitte. Embracing Strategy Consulting as my calling, I've ceaselessly pursued the art of driving growth. I am leading the Transportation, Hospitality & Services in the Netherlands, next to serving with my favorite clients in the Consumer Product and Med-Tech sector. My journey thrives on fueling customer centric growth, mastering commercial excellence, and orchestrating digital innovation and transformations. As an avid field hockey player, I am pleased to support the Hockey Foundation, an initiative of the KNHB to offer kids from low income areas the opportunity to play field hockey.