From easy money to tight money
To say the global economy has changed in the past few months is an understatement, with multiple factors converging to create an uncertain future for many:
Fiscal policy: Governments around the world responded to COVID-19 with stimulus payments north of 20% of GDP. This injection of cash into their economies, along with other factors, has fueled substantial inflation.
Monetary policy: Governments are moving out of a low interest rate environment with some of the largest rate increases seen in decades. For example, the US Federal Reserve raised rates by 0.75% in June, the largest increase since 1994.
Stock market performance: We are moving from one of the best bull markets ever to a bear market as concerns rise over inflation, interest rates, the war in Ukraine, supply chain issues, and more.
Consumer confidence is at an all-time low: The consumer sentiment index reached 50.2 in June 2022, the lowest recorded level since tracking began in 1952.
Corporate response: Many companies are engaging in mass layoffs, hiring freezes, and corporate spending cuts.
We have seen this before. While a simplified picture of reality, the table below is representative of this cycle and the cycles that preceded it. The shift in focus from times of ‘easy money’ to those of ‘tight money’ will no doubt resonate with professionals in customer experience and marketing functions.
Included in this Contents
- How economic uncertainty is impacting customer experience
- How to move forward with confidence
- Focus on ROI to balance costs and loyalty
- Making the business case
This article is posted at qualtrics.com
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