Whether your business is developing emerging technologies or solving a social challenge the basic tenets of commercial success still apply. Customer empathy and partnership in turbulent times are cornerstones of a great business. The COVID-19 pandemic’s duration is unknown, but decisions on how we treat our customers today will have enduring impact.
One Positive Surprise Last Week
Customers vividly remember who does and who does not take care of them when they are struggling. Last week, several days prior to New York Governor, Andrew Cuomo’s order to close Broadway theaters, I postponed a New York holiday because of uncertainty over which theaters and museums will be operating. I had fifth-row seats for “Hamilton” at the Richard Rodgers Theater, operated by the Nederlander Organization.
“Hamilton” is astounding and ticket prices reflect the show’s acclaim. Purchase terms are abundantly clear: all sales are final, unless the show is cancelled (Again, this scenario transpired several days before the mandated cancelation). I emailed Nederlander’s customer service team asking for consideration.
Within two hours a professional and understanding response arrived: a full refund, and “We hope that you will come to one of our shows when you next visit New York.” Yes, I absolutely will. Nederlander has been in business since 1912: I’m not surprised.
Cooperation During Turbulence
In 2007-2008 I was on the other side, a product supplier, with markedly higher stakes. The Great Recession was hammering consumer electronics sales. Our company, Trident Microsystems, had the highest market share for video processing chips for high-definition TVs. These are sophisticated, high-value hardware+software sub-systems. Trident had multiple nine-figure supply contracts with leading world-wide brands.
We had frank discussions with customers. “We’re in this recession together, how might we help each other?” The short-term results included investor pain. Dire market projections battered our stock, and Wall Street analysts discounted our assertion that price cuts and term extensions reinforced our long-term relationships.
In that recession we closed one of our largest agreement renewals ever. The organization and product relationship continued for another ten years and I consult for that customer today.
Customers Will Remember
Customers and partners certainly do have long memories. I graduated from college during a recession. Several of my friends studied chemical engineering. In the Fall prior to graduation they had accepted job offers from prestigious global oil giant. In March, with the recession deepening, those offers were rescinded. My friends, who had declined all other job offers, were left dangling late in the new-college-hire recruiting cycle.
Fortunately a new industry was surging: biotechnology. They went on to amazing careers. The cost for that oil giant’s meeting short-term overhead goals was not only losing profound talent, but also creating distasteful memories that remain decades later.
Have Empathy
Have empathy for your customers during the COVID-19 pandemic and bear market. Act in partnership. Don’t dispatch attorneys to quibble over contract terms. If your business is based on emerging technologies remember that correctly timing a new technology is highly challenging. You need customer-partners who will stick with you as schedules evolve. Plan for where you want to be ten years from now. Consider how each key partner will be part of your spectacular journey. Treat them accordingly. The right ones, the best, will remember.
photo credit: kenteegardin <ahref=”http://www.flickr.com/photos/26373139@N08/6147270119″>Putting The Puzzle Together</a> via <a href=”http://photopin.com”>photopin</a> <a href=”https://creativecommons.org/licenses/by-sa/2.0/”>(license)</a>