Top 10
Ways To Reduce Costs and Improve ROI
Customer
and Contact Management For Higher success rates. One
strategy to reduce costs costs is to "spend less to
get more," that is, to invest in professional, consistent
prospect feedback that will improve both the volume and
capture of future opportunities. By understanding the reactions
and judgments of customers and thier needs for service offerings
delivery can be streamlines through recalibrated marketing
themes, enhanced product offerings and more effectively
trained field personnel.
Increasing profitability by increasing customer loyalty.
Research has shown that 80% of sales are made to 20% of
customers, and these 20% often generate more than 80% of
profits. 30-50% of sales costs and customer service costs
are wasted in efforts to acquire, develop, and keep these
very customers. And customer loyalty is related to how satisfied
these customers are.
Activity Management. To reduce its service management
costs, companies must minimize the time that service proffesionals
spend on route to or between Service calls. Ensuring Scheduling/
Dispatches are fast and accurate with Alerts and reminders
for service personnel. Service reps are burdened with many
activities throughout the day and have no way to schedule
simple "to-dos", delegate actions, or manage complex
tasks. To ensure productivity and efficiency, organizations
must ensure that service professionals do not spend costly
time on coordinating routine tasks and activities, minimizing
the tiem period between service calls.
Optimize your service process. Today's business environment
demands an optimized service force. Often the critical point
of contact between you and your customers, the service force
plays a critical role in facilitating awareness of your
products, people and capability.
Efficient, cost effective billing an accounting.
During mid 1990s, many companies invested heavily in developing
sophisticated in-house accounting systems, but many still
maintain the traditional paper based system. This can be
time consuming and costly to translate customer infomation
from this paper system to billing. Back office processes
in many cases have drastically reduced or totally eliminated
their need for manual entry in an effort to cut the high
fixed costs.
Reducing Cycle Time. Task automation, optimizing
the work processes and eliminating unnecessary activities.
Training. Well-trained staff are vital to the
future of your company. Training presents an overall
process for successful service and provides practical
guidelines on how to plan, start and close all aspects
of the service cycle, as well as the skills needed
to succeed at each stage.
Service force Automation. With Service Force
Automation organizations can grow revenue more quickly,
predictably, and profitably by helping service professionals
focus on the right job at the right time.
Reduce cost-of-sales. Increasing gross revenue
is only half the battle. Become more proficient at
selecting which business opportunities to pursue to
maximize margins and to become more efficient and
effective in bringing business to closure so that
the cost of making each service is reduced. Managing
the average cost-of-sale should be a major objective
for every service organization.
Improve profit margins. The equation is really
quite simple . . .
Revenue - costs = margin Margin - expenses
= profit
Factors in improving profit margins:
1. Increase gross revenue.
2. Reduce cost-of-sales.
3. Better utilize human capital and
other assets.
