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36 Managing Customers Through Economic Cycles

Are you the type of person who will put most of their energy
into figuring out how to save four cents per hour on loading
dock costs or how to use a cheaper wax on the retail floor?
Or are you the type of person who is always after finding
new innovative ways to grow the top line of the P&L?” This
mirrors the conundrum that businesses find themselves in
every economic cycle – what is the right balance? Each busi-
ness’s answer to this question is different, based on their
place in the economic cycle.

One travel company continued to encourage innovation
and new ideas for the top line while it shored up its
bottom line. Their criterion for top-line revenue initiatives
in tougher economic times was that the ideas would be
economically viable for their customers in tighter econo-
mies but more importantly positioned them for strong
revenue growth when the economy improved. One of the
ideas they came up with was a travel product that com-
bined “green” environmental activities with travel destina-
tions. So instead of their travel customers just traveling to
Africa on safari, they would schedule several days in
advance of the trip helping villagers with local food and
nutritional programs. This type of travel product fits nicely
with the customer’s psyche during tougher economic
times.

● Require minimal amount of R&D
● Help customers feel better about spending vacation

dollars
● Give travel business reason to communicate with

customers
● Further investment could create strong top-line growth

in recovering economy.

“We damaged customer experience by making bad choices
in operational cuts” Protect your customer experience in