CFOZone.com - The Network of Corporate Finance

Maybe the economy is showing some signs of life, but don't expect your customers to rush back to buying your products and or and services. They may be a bit gun shy for a while, even if they have the money to spend, it's a mind thing. They may still feel somewhat insecure about loosening their purse strings.

The Corporate Executive Board offers some insight on how to keep and grow customers in uncertain times.

Make high-order emotional connections. Even the hardest hit consumers reward favored brands with loyalty. A common purpose, passion or philosophy leads to bonds that can be hard to break.

Introduce rearguard brands or brand extensions. Consider offering less expensive extensions of your big sellers, for example.

Catch category jumpers. Some folks will quit buying certain types of products altogether. See where you can sneak in. Maybe someone decides to ditch dry cleaning but will be interested in home laundry products.

Remove purchasing obstacles. It's not an accident that some companies have created buyback guarantee programs. If someone loses their job, they won't have to worry about that car or other item they just bought.

It's time to get creative. What are you doing to ensure your organization gets and keeps customers in this environment?

A new report from Grant Thornton International brings home just how important customers are.

According to Grant Thorton, globally, 41 percent of businesses say that customers are their leading source of innovation. When U.S. businesses were asked to name the origin of the best innovation ideas, they named customers (37%) and in house R&D teams (37%).

Companies that figure out how to finesse customer relationships will surely have a competitive advantage.

The Corporate Executive Board offers this advice for marketing in this tough climate.

In a fast-changing media environment where new ways of reaching consumers seem to pop up daily, focus on three priorities: build a more agile, customer-centric approach; think strategy first, tactics second; and focus on your message for resonance. One client in our network, when facing a lack of differentiation within its product category and among its own brands, undertook a brand positioning strategy that matches each of its brands to a target consumer. They develop "Truth Points," or short articulations of product benefits using language and imagery, that target consumers can relate to and understand. Truth Points are utilized in all marketing communications, including cosponsored retailer television and print ads.

A recent management tip from the Harvard Business Review has this to say about handling customer complaints.

1. Understand the full context. Try to understand as much as you can about the complaint. The more information you have, the easier it is to determine the root of the dissatisfaction.

2. Propose a resolution. Know what would make the situation better for your customer and propose ways you can solve the problem.

3. Show respect. Complaining customers are often upset. Train employees receiving complaints to be empathetic and to reframe the harsh criticism they may receive into constructive feedback.

The Conference Board Council on Corporate Brand Management issued a report this week, Corporate Brands -- Meeting the Challenges of Changing Times that urges companies to tend to their brands more diligently and painstakingly than ever.

When the world emerges from the depths of the worst recession in two generations, it will be a different and more difficult place to effectively manage a corporate brand. Companies simply won't be able to do things the way they always have. But they can succeed by adapting their brand strategy to reflect what changes the recession has brought to their business and what it might mean for customers. This will poise them for growth.

The global recession, coupled with cases of unethical corporate behavior worldwide have eroded trust in business, and consequently in corporate brands, according to the report. Moving forward, the operating landscape or "the new normal", will be characterized by consumers who are much more educated buyers and have less brand loyalty or trust than they used to.

However, building an internal brnad culture is as critical as building a strong, external one. The corporate brand is not only used to improve competitive positioning and express company aspirations, it can be a powerful tool to motivate employees, who act as the brand embodiment when dealing with customers.

The report's takeaway: Smart companies will act now to reposition brands and mindsets.

The issue of brand loyalty is a big one. Even without the downturn, younger people's loyalty to brands has become famously fickle. And they're so deluged with media, they're also famously cynical about marketing messages. Now, thanks to corporate misbehavior and stupidity, there's even more mistrust of all institutions. I'm not a brand expert. I don't know what the answer is. But I do know that no company can take for granted the loyalty of any customer now, particularly younger ones.