The upside to the economic downturn: Relationships pay dividends

COMPANIES that have invested in client relationships are reaping the benefits in tougher economic times.

That’s one of the key messages to emerge from expert advisers helping firms find their way to success in a low growth economy.

Pressures of the tough trading environment can easily turn into tensions between customers and suppliers making communication critical.

Neil Sevitt, regional managing director for the North at RSM Tenon, says a business has to work hard at its client relationships to make sure they will never consider an alternative provider.

“Make sure the relationship is so tight and important that an alternative wouldn’’t enter their head. Have trust in place so that when they have an issue the first person they call is you. That takes hard work,” he says.

The economic conditions can be viewed as strengthening the hand of customers but experts insist that it is equally in their interest to keep suppliers happy.

“If your terms [for suppliers] are unrealistic or uncommercial you won’t get a quality supplier. If they are having to chase you for payment it will affect the quality of your supply,” says Sevitt.

Customer-supplier relations are considered in more detail in a new free 16-page supplement from TheBusinessDesk.com – “The upside to the economic downturn”.

Click here to read more features in this series and to download the supplement.