Tuesday, 7 October 2014

Getting the formula right



Companies trying to improve bottom line returns have recourse to two obvious strategies; cut operating costs whilst increasing revenue.

From a Financial Director’s perspective it is the Holy Grail.

The Sales Director only has one shot in his/her armoury namely increase sales. Sales targets can always be raised but a sense of commercial realism also needs to be applied.

If you are marketing a totally unique product or service the task is easier but for the most part there are many companies offering a similar range of products in a broadly similar price range.

As such for most companies it is about getting back to the basics – ensuring orders are processed efficiently and in a timely fashion. Following up on customer satisfaction, in short providing what in old fashioned terms was called “service”.

This is where a difficult balancing act comes into play, in cutting costs the net result is very often a reduced / demoralised workforce.

If those involved in the support work aren’t performing then results inevitably suffer. It is a question of striking the correct balance.

No comments:

Post a Comment