St. Louis · October 15, 2014

• Economy? Customer-Centered Economy?• Why is this important?• What challenges do businesses face?• How are they responding?• What is most important asset for business?• Are there opportunities for career-seekers?• How does the future look?

Our Focus Today

The network of businesses and people that make, distribute, market, sell, and buy goods and services in a local, regional, or national community. Adapted, Business Dictionary

Economy

• The Agrarian Age Farming, mining, working the land• The Industrial Age Factories and the things they made• The Transportation Age Highways, roads, distribution systems – coast to coast• The Information Age Computer technology everywhere – around the globe

Economies have changed over time

Today is the Age of the CustomerAttracting, engaging, retaining customers in a competitive market

“To be truly competitive, your company must become customer obsessed, which means you need to have deep knowledge of and engagement with your customers.”

Forrester, a global advisory firm to business

Why?

The Customer-Centered Economy

What customers spend is 70% national GDP

43% of U.S. CEOs are concerned that shifts in consumer spendingcould threaten growth of theircompany PwC

10% increase in customer retention= 30% increase in company value

Bain and Co.

Customer satisfaction impacts biz growth

Attracting, retaining customers is a challenge

• All ages, from pre-teens to seniors• Different budgets: high-end to low• Different lifestyle preferences• Different cultural, ethnic, international

backgrounds and languages• Some want ‘green’ products and services• Some are health and diet conscious • Some want things right away, others ponder

1. Customers are more diverse than ever

• Four levels of service: basic, expected, desired, and WOW.

• Customized products and services give customers what they want, ‘my way.’

• “Participatory commerce” brings customers into design, product development, marketing.

2. Customers have high expectations

• Traditional marketing techniques have been up-ended.

• Smartphone videos and photos put the message in the hands of customers.

• Twitter, Facebook, Yelp, TripAdvisor, GooglePlaces, Instagram, company websites give customers a megaphone.

• 60% consult a customer review forum prior to making a purchase.

• 70% listen to family or friends.

3. Social media gives customers power

• Customers can easily shop around.

• Two-thirds of customers surveyed took their business elsewhere because of poor service.

Accenture• It costs 5 to 10 times more to acquire a new

customer than to keep an existing one. Restaurant Business Online

• Customers want to be able to trust. One bad apple can make it harder on others.

4. A bad experience can be bad

Nine out of ten are strengthening their customer / client engagement programs. PricewaterhouseCoopers

How are companies responding?

They’re taking new products and services...

• Bricks and mortar stores, hotels, restaurants• Home delivery – just in time• Personalized service• Online advertising, reservations, shopping More use mobile devices vs desktop, laptop• Omnichannel experiences

74% of customers use more than one channel when making a purchase• Pay with mobile device instead of paper, plastic

Offering customers many shopping choices

Getting ahead with the Internet of Things

And other new technologies, like RFID

The most important business asset is people

People who are enthusiastic and knowledgeable about customer service

People who can ride the ups and downs of the customer-centered economy

• Sociable

• Confident

People who are ....

• Flexible

• Hard working

And ...

• Good listeners

• Empathetic

And ...

• Thorough

• Good communicators

And ...

• Team players

• Problem-solvers

And ...

“I look to see if the person behind the counter looks me in the eye, smiles, and says ‘good morning’ or ‘good afternoon.’”

“I would say attitude and integrity are the most important.”

“I think empathy and a drive for excellence.”

CEOS say these skills shine in the workplacefrom an interview for Forbes

“I love people who are just unwilling to stop until it’s right, whatever it is; they don’t stop until it’s right.”

“We strive to make our guests feel not just important, but genuinely welcome.”

In other words, these business leaders want to make sure that customers are at the center of what their employees do.

CEOs say...

Do St. Louis employers need such people?

• Retail salespersons, wholesale sales reps, customer service representatives, and food servers are among the top five occupations for entry-level work.

• There were nearly 3,200 openings for these occupations in the area in June – July 2014.

In the St. Louis Labor Market Region...

An entry-level customer service representative may make $20,100 per year. With experience and time on the job, that customer service rep may earn $37,400 a year.

The skills needed for entry-level customer service provide a solid foundation for many other career fields.

Are these dead-end jobs? No, these can be career-launching jobs!

• Bright • Hands-on• Tech-savvy• Dynamic• Within our reach

How does the future look?

St. Louis · October 15, 2014