In the face of economic adversity, private businesses are leveraging innovative strategies to turn challenges into opportunities, prioritising customer retention as a key driver of growth.
Agriculture is a cornerstone of Nigeria’s economy – providing employment to more than a third of the labour force – up to 80 percent in rural areas. Nigeria, West Africa’s most populous and largest economy – has the potential to play an outsize role in stabilising the region and helping to ensure economic growth.
However, the private sector is one of the key contributors to developing extensive supply chains, including production, processing, manufacturing and distributions, which are critical economic drivers.
But, the prolonged humanitarian crisis – worsened by an economic slowdown, high inflation, and rising food prices, means over 3.6 million people across the northeastern and northwestern states have been forcibly displaced by conflict and are unable to access their farmlands or engage in other economic activities.
Meanwhile, malnutrition is rising, with 9 million children at risk of acute malnutrition in the country. According to a recent report by the World Food Program (WFP), the number of children admitted for severe and moderate acute malnutrition has risen by 40 and 70 percent compared to 2023.
Read also: WFP calls for PPP initiative to build peace, tackle root causes of hunger in Nigeria
The WFP would need an estimated $228 million to stave off tragedy in the northeastern part of Nigeria alone to meet the food and nutrition needs of about 1.6 million people over the next six months.
While the scale of the current economic crisis calls for a response that goes beyond badly-needed humanitarian interventions, with sustainable food security and nutrition for millions of households, provided the country receives the attention commensurate with its strategic importance.
Hence, as the economy navigates fluctuations, forward-thinking companies are adapting to shifting consumer behaviours, fostering loyalty, and emerging stronger. This is even more needed now that consumers and customers alike are cutting down on purchases on the back of the recent hike in prices.
For an average consumer, the cost-of-living crisis has taken a toll on their finances and this has been exacerbated by the recent hike in the prices of commodities across the country. From fuel, to cooking gas, to household commodities; consumers have been paying the price of the government’s economic reforms.
However, private businesses are recognising that these obstacles also offer opportunities for innovation and growth. This is so because customer retention is a key strategy that businesses leverage in times of economic uncertainty, to deepen their reach and grow bottom-line.
For many businesses, acquiring new customers can be costly, with some estimates suggesting it’s 5-7 times more expensive than retaining existing ones. However, by focusing on customer retention, businesses can maintain their revenue streams, build brand loyalty by encouraging positive word-of-mouth that help in gathering valuable feedback.
While Nigerians await the dividends of the current economic reforms, which the federal government said is aimed at repositioning the country on the path of economic growth; private businesses are deploying innovative strategies to keep their businesses going amid decreasing purchasing power of the consumers.
Private businesses are implementing creative solutions to retain customers from producing personalised products and services to loyalty programs that target individual consumers. By tailoring products and services to meet individual needs, businesses are communicating their brand essence in a way that directly speaks to the consumer.
Similarly, private businesses are creating loyalty programs to reward customers for repeat business patronage. Businesses are also providing seamless experiences across their online and offline platforms through the omnichannel engagement with their customers and consumers alike.
On the back of the omnichannel are the value-added services that offer complementary products or services, which are backed by employee empowerment through staff training to deliver exceptional customer experiences.
Closely related to the omnichannel is the data-driven insight that businesses are leveraging with analytics to understand customer behaviour, which in turn help in creating online forums or social media groups in building their digital community for customer engagement.
“I know the economy is not smiling at the moment; however, I think we have to recognise organisations and businesses that relate with their customers on the basis of that understanding,” Modupe Oni, a Lagos resident shared her experience with BusinessDay SUNDAY.
She told BusinessDay that her internet service provider (ISP) recently surprised her with a special package when she went to renew her internet service. “I walked into a Spectranet shop somewhere in Festac Town to renew my monthly package; but surprisingly, I was told that I have a loyalty reward (Jara points) that covers for my subscription,” Oni said.
Luckily for her, another business within the mall was also gifting customers on the same day. “While at the Spectranet shop, the attendant also disclosed to me that the shop next door has been gifting everybody that walks into their office something since morning. That is how I walk into the Wakanow shop to make enquiries and win some gift items for myself,” she said.
Onyinyechi Agwu, a content creator @ O.R.A Vlogs who recently received a surprise package from a grocery store told BusinessDay that she rarely gets gifts from businesses for her patronage. “However, a small grocery shop gifted me snacks as an appreciation for patronising them frequently.”
However, Elizabeth Ekanem, head of customer experience, Kuda, while speaking on how the business is adapting its customer experience strategies to help customers navigate the current challenges. According to her, Kuda has a culture of proactive communication to keep customers updated about possible service disruptions or changes.
She said further that the brand leverages empathy, patience, and flexibility to manage its customers’ base, especially whenever there is a service disruption. “At Kuda, our goal is to always go above and beyond for our customers. To save them time and give them the power to sort out minor issues easily on their own.”
Badru Saleh, a public commentator, told BusinessDay that private businesses who understand the benefits of regular rewards systems in relation with customers tend to perform well in the long run. According to him, private businesses are successfully navigating economic uncertainty by prioritising customer retention.
He said further that as the economy continues to evolve, forward-thinking businesses will emerge stronger, with customer retention at the forefront of their growth strategies. According to him, private businesses can enhance brand reputation and increase revenue through repeat business by prioritising customer retention.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
