It is not uncommon knowledge that Supply Chain issues are rife across the globe and have been for a couple of years now. These supply chain issues have been a result of a combination of different reasons. The obvious one: a slow return to pre-pandemic production levels and a backlog of materials due to problems further down the chain. There have also been staff shortages, extreme weather and pressures to be sustainable even when it comes at an added cost during already challenging times. In addition, there are global tensions at play driven by the Ukraine and Russia conflict, causing blockages and a need for supply chain managers to look to on/nearshoring. The list is endless.
Whilst those organizations that are nearest the end of a supply chain and those working directly with customers are most affected, it has a ripple effect down the whole supply chain. The reputation of the organization at the end of the supply chain can also have a knock-on effect on those organizations they work with to deliver their products/services. If the bottom line of the B2C companies is impacted, it will only hit other organizations further down the chain. These supply chain issues are relevant to all companies, in every industry sector across the world.
A recent research study by RSM1 reports that there has been a decline in customer satisfaction directly attributed to these problems in the supply chain. Furthermore, over 25% of organizations they surveyed said they lost at least one important customer in the past year as a direct result. Customer churn is therefore a problem and we can foresee this only getting worse as these challenges continue.
From a recent research study of ours, we reported similar findings around the many failings of B2B customer experience. Currently, a quarter of B2B organizations believe that their customers would give them a score of five or below out of 10 when rating their customer experience. To say that’s poor would be an understatement and this isn’t just down to supply chain issues, so what we have is a perfect storm!
There are many ways in which you could improve customer satisfaction, but of course this is all unique to every single organization. To name a few, it might be to look at how sustainable your operations are, understand whether your brand has embraced digital transformation and is therefore operating effectively (especially because of staff shortages), or perhaps you need to improve on customer engagement and communication during longer turnaround times.
It really is a minefield and remember everyone is feeling the pressure. So, is this a recipe for disaster or a golden opportunity to differentiate your brand by providing the best customer service possible during these increasingly challenging times?
At B2B International we have always believed in embracing opportunities from multi-dimensional challenges. The global business landscape is complex. We combine unique global experience, advanced research techniques and a truly forward-thinking attitude to understand the dynamics of change that are happening all around us. We synthesize the data we collect for clients in order to build a clear story and simplify the landscape so they can make decisions with confidence.
The time is now to understand your supply chain better, how it is impacting the end customer and where the opportunities to improve lie. The time is now to improve your customer experience overall, reaching CX leader status and being part of the solution as opposed to the problem. The time is now to look internally so you can optimize systems making it easier both for employers and customers alike, whilst also ensuring all stakeholders are satisfied on a wider scale.
Embrace the opportunity.
References
1 https://www.thetimes.co.uk/article/reputations-suffer-in-supply-crisis-dtf0w3780
