As we stand on the cusp of 2024, the entrepreneurial spirit in Phoenix is palpable, with the region’s economy showing robust momentum over recent months with new business growth exceeding the national average. But with a global economic downturn looming and new technological and societal trends emerging every day, businesses in Phoenix need to adapt if they want to thrive in 2024, balancing fiscal prudence with strategic investments in innovation. Here are some of the top trends to look out for over the next year.
A.I. Tools and a Human Connection Renaissance
It is no secret that A.I. tools are set to revolutionize how businesses operate. Companies in Phoenix are no different. If they haven’t already, organizations should develop a generative A.I. strategy, for example, to enhance customer experiences and optimize internal operations, ensuring they are not left behind as this technology reshapes industries. Popular generative A.I. tools include customer service chatbots, real-time supply management platforms, staff scheduling software and more.
On the other hand, in an era where A.I. is omnipresent, there will also be a burgeoning need for human connection within organizations. Phoenix businesses have a unique opportunity to leverage this human touch to distinguish themselves in a market that’s increasingly automated.
This approach is mirrored by industry leaders like FSC, the franchisor behind familiar names like Beef ‘O’ Brady’s, the sports bar franchise and The Brass Tap, the craft beer bar franchise. Their success across the U.S., with over 180 locations total, is completely rooted in customer experience and the kind of human element that A.I. cannot replicate.
Nurturing Soft Skills
Similarly, technical tasks may be readily automated, but the nuanced soft skills — emotional intelligence, communication and strategic problem-solving — are becoming the new currency in the business world. There will likely be a shift toward hiring for specific skill sets and experiences over traditional metrics like educational attainment.
Next year, Phoenix’s businesses should invest heavily in nurturing these soft skills, fostering a workforce adept at complementing technological advancements with a much-needed human perspective. This could mean implementing targeted training programs, promoting cross-departmental collaboration or incentivizing mentorship and leadership development.
Personalization and Customer Experience
With competition growing every day across industries, customer experience will be paramount as businesses strive to make each interaction memorable in 2024.
Personalization, for example, is one front where Phoenix businesses can excel. Local brands should take cues from nationwide giants to offer customized experiences at scale, whether that be through loyalty programs, tailored promotions or otherwise. The strategic use of historic data can also be an invaluable tool in opening new avenues for monetization and improved customer offerings.
This renewed focus on customer experience could also potentially lead to the rise of a new C-suite-level role in the corporate environment — Chief Experience Officers. Organizations will need to ensure they have the right leaders in place to oversee this critical aspect of the business.
This trend also dovetails with an increased focus on sustainability, as consumer preferences lean toward environmentally conscious businesses. Phoenix’s entrepreneurs are expected to ride this green wave, with sustainability becoming synonymous with economic growth.
Remote Work, Diversity and Organizational Resilience
When it comes to finding and retaining talent, there are several trends organizations need to keep in mind, especially as the unemployment rate reaches historic lows.
Remote and hybrid work models are here to stay following the pandemic, for example, and Phoenix’s job market will reflect this continued flexibility. Additionally, having a focus on an inclusive work environment while also finding the right person for the right seat is important. This is when organizations run best. There is emphasis on the fit and capability of each individual.
Overall, resilience forms the backbone of Phoenix’s business forecast. Companies are expected to draw lessons from past challenges to build robust strategies that can weather any storm. By championing human connection, embracing technological advancements judiciously and fostering an inclusive, resilient business culture, local enterprises can look forward to a year of opportunity and growth amid uncertainty.
Jania Bailey is CEO of FranNet.
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