In a talk I gave to a group of C-suite leaders, I started with a simple multiple-choice question: Three years from now, do you anticipate your customers’ expectations of your business will be (A) Lower than today, (B) About the same as today, or (C) Greater than today? Their response was unanimous — customer expectations will be greater at the end of 2027 than they are today.
The response was not a surprise. What was surprising was these leaders’ reaction to the following question: When should your company begin addressing these changing customer expectations? It was clear this was a more challenging question to answer. The best answer is now; today is the time for your business to understand how customers and their expectations are changing and, equally important, what you will do to meet them where they’re going.
Unfortunately, or opportunistically, most annual business planning is driven by the budget, not the business, aka, serving the customer. The “unfortunate” take is that driving management activities based on the financial plan tends to misalign cause and effect. It’s the activities a business engages in to serve its customers that create financial results. The “opportunistic” take is that companies that obsess over their customer experience are more likely to produce better financial returns than those who are first guided by the numbers.
Bypassing your 2025 financial plan is not an option. However, building a plan that starts with a different set of questions can position your business for success as customer expectations evolve. Consider these questions as you engage in the pre-work for your company’s 2025 plan:
- What do we know today about changes in who our customers are and how their expectations are evolving? Consider conducting customer interviews or using data analytics to help answer this. Who is buying our product or service today, and how has that changed over the past year? Are new demographic groups emerging in our customer base? What are the different expectations or preferences these groups may have?
- What external forces are shaping customer behavior? Are there economic, social, technological or regulatory changes altering our customer’s journey?
- What do we need to know more about to understand how our customers and their expectations are changing? What gaps exist in our current customer understanding (research)? Are there customer segments or geographic areas where we lack intel?
- What channels are our customers using to communicate, transact and engage with us? Are these changing? Should we be adapting to new social media platforms, messaging apps or platforms?
- Where in our offering (product, service, delivery approach, technology) do we risk falling short of our customers’ expectations today? This is where revisiting (or developing) customer journey mapping matters. Is our offering and go-to-market delivery model aligned with what our customers expect? Are there competitive innovations we should adopt to stay relevant? What has our competition implemented that we haven’t, and how does this impact customer expectations of our business?
- What risks do we face if we approach our go-to-market business model in 2025 the same way we did in 2024? If we remain static, how might shifts in customer expectations, technology or competitors adversely impact our position? Are we seeing any potential industry disruptors on the horizon that may come to market in the new year? If so, what is our approach to mitigating their impact on our business?
- What is the greatest controllable risk we face in 2025 (declining sales, departing customers, product issues or obsolescence, regrettable employee turnover), and what actions can we take now to mitigate these risks? This line of inquiry helps identify the most pressing risks to the existing go-to-market business model. For example, if customer loyalty is slipping, what steps can we take to enhance their experience with our company? It’s also an opportunity to discuss early warning signs for these risks.
- Where do we see emerging trends or market shifts we will need to address in 2025? – This question is about identifying what may be unfolding now and coming to fruition in the new year. Are there shifts in customer preferences, technological advancements, supply chain or new regulatory environments that could impact our business?
- Is there anything we’ve observed or experienced this year that suggests it’s time to revisit how we define success in our business (our vision)? This inquiry is an invitation to take a step back and ask: is our strategic vision aligned with the evolving reality of tomorrow’s business landscape? Should our long-term objectives be recalibrated based on shifts in the market or customer base?
There are many unknowable unknowns in the business world today. But these questions, and other similar lines of inquiry, can help frame a more impactful approach to creating your 2025 business plan, starting right now.
Opinions expressed by SmartBrief contributors are their own.
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