REDUCE COSTS WITHOUT LOSING BUSINESS

Up to 85% of an organisation’s ‘energy’ (and operating budgets) may be wasted

Increasing organisational efficiency (cutting costs) is a common objective across companies in all sectors.  Every single one of our consultancy tools has been specifically created to flush out inefficiencies wherever they are in an organisation and to identify work processes and activities that are fundamental to the creation of sustainable profit.  Our work with clients has shown that budgets (marketing, sales, service, operations) can be cut by up to 40% through focusing on what really matters, engaging and aligning the organisation behind these things and encouraging a relentless management focus on them. 

So where do we find the 40% potential savings?  Unfocused organisational energy clearly is wasteful of resource, broken processes or organisational misalignment can lead to a high ‘cost of failure’* which can be as much as 85% (John Seddon*).  Recruiting and retaining the wrong customers can be incredibly wasteful as can using an expensive blend of channels for acquisition, retention and penetration (although we do not advocate a 100% blind shift to digital and online channels because of the impact this has on customer loyalty and price). 

A customer value and behaviour analysis will provide the data to identify where the biggest opportunities for increased profit are for customer acquisition, retention, penetration and cost to serve. An assessment of your customer management capability – particularly the customer lifecycle and channel use – will identify profit supportive or destructive processes and ways of working.  Finally, an analysis of customer, associate and channel partner feedback will identify current motivations and their likely impact on the bottom line.  We then pull all this together and recommend where budgets can be sensibly cut, where they should definitely not be cut, and where organisational efficiencies can be improved - and how.