Inflation Shouldn't Mean Cutting Back on the Customer Experience

Many large organizations in response to inflation have been cutting back on customer experience hoping to offset rising costs. Although this might seem like a prudent measure, a short-term reduction of customer experience might ultimately affect long-term revenue.
Examples of cuts to customer experience include longer wait times when seeking customer service, more self-service options instead of human support, or the fact many hotel chains no longer offer daily cleaning.
3 Reasons Businesses Shouldn’t Cut Back on Customer Experience
There are always possibilities when considering how to respond to inflation.
1. The Reputation of Your Brand Is Worth More Than Short-term Savings
When businesses cut back on customer service, they do so at the expense of their reputation and long-term revenue. Data suggests that consumers who have a positive experience with a company spend 140% more than those who don’t. 
2. In the Era of Social Media, Customer Service Is Just As Visible As Price
One reason people believe cutting back on customer experience instead of raising prices during inflation is a good measure, is that it affects the customer in a less obvious way. Wrong.
In the era of social media when customer satisfaction rules all, data shows that 86% of customers will reconsider buying from a company that has negative online reviews.
2. If You Do Raise Prices, Clearly Explain Why
Research shows that the two things people think about after a price increase are the size of the increase and is it fair. During the pandemic, people are experiencing widespread shortages, the prospect of inflation, and rising input costs.
On the whole, when people hear that a brand’s price is increasing, it simply confirms their expectations. However, it wouldn’t hurt to write an honest and to-the-point explanation for why prices are being raised.