With rising interest rates, global conflicts, and fluctuations in currency values, today’s small and medium-sized enterprises (SMEs) are grappling with a new set of challenges.
Many businesses, especially those in the service and retail sectors, find themselves in a "wait-and-see" mode, debating where and how to invest their resources. With so many pressures, they’re pulling back on unnecessary spending - and things they deem as less necessary, like marketing.
However, this often results in neglecting one of the most important parts of long-term success: customer experience. And in turn, it could be hurting their business.
The cost of neglecting customer experience
Forrester's 2024 Customer Experience Index (CX Index) reported a drop in customer experience (CX) quality across the majority of Australian brands and agencies analysed in the study.
Another report from CPM shows Australians are losing patience with bad customer service. 37% stopped buying from a company after just one bad experience last year.
When customers don’t feel valued or engaged, they’re more likely to seek out alternatives. This is particularly true in the current market, where customer loyalty is fragile.
Customers don’t want to engage with you if you’re not finding out what their pain is or how to improve their experiences. This disconnect can lead to missed opportunities and even customer attrition as competitors step in to fill the gap.
One commonality of businesses struggling with customer retention is that they haven’t invested in automation. Without automation, SMEs may find it challenging to maintain consistent communication, manage customer data effectively, and deliver timely, relevant information.
Leveraging automation to enhance customer experience
Automation delivered through an Enterprise Resource Planning (ERP) system can enhance the customer experience by handling routine tasks and streamlining processes without requiring constant human intervention. This allows SMEs to deliver consistent, high-quality service automatically, ensuring that every customer interaction is smooth, timely, and accurate.
Without automation capabilities, businesses are limited by their human capital. Their people need to do the fundamental tasks as well as the nice-to-do tasks.
Automation alleviates this burden by handling repetitive, time-consuming jobs, allowing critical processes to run efficiently on their own. This ensures that even with less human input, the customer experience remains seamless and satisfying, with automated systems providing the personalised service that customers have come to expect.
Automation in action
Automation gives SMEs a powerful toolset to boost customer experience by making operations smoother and personalising interactions. Here are a few ways it can help:
- Automated communication: Automation can help SMEs maintain consistent communication with customers without overwhelming them. For example, letting them know when a new offer of product is becoming available. This kind of targeted communication keeps customers informed and engaged without requiring additional effort from staff.
- Efficient order management: Automating order processing and invoicing helps guarantee both accuracy and timeliness. Automated systems reduce the risk of human error and ensure that customers receive their products and services as expected.
- Customised offers: Automation allows businesses to tailor promotions and offers based on a customer’s purchasing history. When a customer buys a product, automation can suggest related products, enhancing the likelihood of repeat sales. This personalised approach makes customers feel valued and understood.
- Cross-promotion opportunities: SMEs can leverage automation to facilitate cross-promotions, even with products or services outside their own offerings. This approach adds value for customers and strengthens relationships by showing a broader commitment to meeting their needs.
However, automation is only as effective as the system that powers it.
While automation can greatly improve efficiency, it’s important to have a reliable and proven system in place. An untested system can lead to significant errors, such as sending incorrect information to customers and potentially damaging your reputation.
Improve your CX with SAP Business One and KBS
Investing in automation is a win-win for SMEs. It helps you deliver better customer experiences, keeps clients coming back, and makes room for your team to work on bigger goals. With the right tools, you’ll be in a position to thrive, even in a challenging market.
For SMEs looking to harness the power of automation, SAP Business One offers a robust, reliable solution that helps businesses streamline operations and improve customer satisfaction.
For more information about B1 and for help integrating and tailoring automation your business needs, get in touch with KBS.
