In trying to improve profitability, there are 2 obvious strategies, cut operating costs whilst increasing revenue.
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 and 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.
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