All Change in the Business World?

2009 was a grim year. The signs, so far, are that 2010 should be better. The UK is finally out of recession (just). Our latest research among business leaders shows that they feel more optimistic about the economy than at any point in the past six years. Business journalists and marketers are also feeling positive. And, following a dip in optimism about the economy in December, the general public is also feeling more chipper. As we start a new decade with the hope of better times, it is a good moment to reflect on the extent to which the world around us is changing. Marketers certainly think that the customer landscape has been transformed - according to our latest research among members of the Chartered Institute of Marketing, 72% agree that there has been a fundamental shift in their customers' behaviours and spending patterns since the start of the recession. But we also need to remind ourselves that there is much which endures. In our End of Year report160, Sir Terry Leahy, CEO of Tesco, argues: "Don't think that the world is being turned upside down. At the most basic level, people's hopes and aspirations don't change that much. From a retailer's perspective, people around the world still want to look good, feel good, and live long." Twitter, Facebook, blogs and the rest have huge potential for companies - bad as well as good - and brands need to figure out how best to nurture customer relationships in the social media space. More than ever, conversations with customers are regarded as a dialogue - and an opportunity to understand customers better. The days of companies talking at their customers are long gone. But, to paraphrase Calvin Coolidge, the business of business is still business. Getting the value equation right - so that customer needs are satisfied at an acceptable rate of return - remains the key imperative. In our160most recent survey of business leaders (who voted Sir Terry the most impressive business person in the UK for the fourth year in a row by the way), we asked what elements of their customer strategy would be most challenging in 2010. Offering customers the best possible value compared to competitors and meeting the needs of different types of customers were the top answers. If we had asked them the same question fifty years ago, I suspect the answer would have been the same. John Lewis is an example of a company who are getting the value equation very right, recently posting stellar financial results after their best Christmas ever. The value offered to customers goes beyond competitive prices for products and services customers want. It also encompasses, among other things, great customer service on the shop floor, a seamless online and offline experience (this wasn't always the case) and the opportunity to earn John Lewis vouchers through using their Partnership credit card. Social media and the recession are among the forces reshaping the dynamic between companies and customers. But some fundamentals remain unchanged. As the example of John Lewis illustrates, a fair exchange of value remains the foundation on which strong customer relationships are built. The trick is to get the value equation right for both the customer and the company.