2010 is the year of the customer for Kiwi business

2010 is the year of the customer for Kiwi businesses

New Zealand businesses are cautiously optimistic about the future and are actively looking at different ways to ensure sustainable business growth, according to the second edition of the quarterly PricewaterhouseCoopers Clever Companies Insight. In particular, they are deepening their focus on customers - putting themselves in their customers’ shoes and seeking out ways to enhance customer relationships and drive growth.

PricewaterhouseCoopers "snapshot" survey of 461 New Zealanders in business, released today, shows 48% of respondents are planning to achieve better customer focus through a customer care programme. A total of 39% are looking to implement customer loyalty programme, 38% want to better understand their customers' behaviours and expectations via market research, and 35% are even considering discounts for bulk or loyalty.

These results are consistent with our previous Insight issue which showed businesses were shifting their focus on customers (issue # 1 2009 - September 2009) and with our first New Zealand CEO survey released on 27 January, 2010.

PricewaterhouseCoopers partner Hamish Bell says “the survey highlights the fact that New Zealand businesses are now starting to think beyond the recession - with a growing focus on what might be achieved in the future, not just on what is needed to survive.

"Despite mixed signals from the market, businesses seem increasingly confident the worst of the recession is behind them. They are now focusing on the post-recession environment, where it is essential that they are innovative: engaging and better understand their customers to ensure business growth and customer loyalty and satisfaction."

In line with this new sense of cautious optimism, businesses are also looking to release cash to fund growth - and to pursue some of these customer-orientated initiatives. 42% of respondents consider banks as their number one source of finance. Yet, interestingly, the same number (42%) indicated they were likely to source cash internally via better working capital management.

"In addition of a customer-focused approach, our clients are asking us for strategic advice on how to release cash unnecessarily locked up in the business - amongst other things first by conducting a detailed review of their working capital cycle," says Mr Bell.

"As we move out of recession, having a clear view on the future - and planning for change should be a key priority for businesses." Mr Bell added, "Clever companies understand the importance of a well-balanced relationship with their customers and banks. There has never been a more important time to focus on these relationships and on securing the cash necessary to effect change."

ENDS