3 Tips Will Help Your Business Exceed Profitability Goals
Savvy businesses know that increasing topline sales doesn’t necessarily enhance your revenue. Here are three quick tips that will help you find a balance for your business.
Are your topline sales doing great, but you still find your business struggling to maintain an adequate profit margin? Over time, many businesses find themselves struggling to keep everything moving smoothly in their business. Whether the problem is unexpected expenses or extreme customer turnover, it’s vital for the long-term viability of your business to keep things running efficiently. That often starts with having a reliable business infrastructure so your staff can perform their daily tasks with ease. Want to see what the most successful businesses are constantly examining? These three suggestions are top-level items that can make a significant impact on your business.
Cull Your Least Successful Items (or Customers!)
Nearly every product line has products that are more successful than others, but the sales coming from the less-profitable items can be difficult to release. When you reassign the assets that are being utilized to maintain less-profitable products, you might be surprised how much profitability shifts with an improved focus on your best products. The same can be true of customers, with the customers that are the least profitable often taking up more than their allotment of resources for a sub-standard return on investment. Measuring this information can be tricky, but having all of your customer data consolidated in a secure storage location makes the analysis easier.
Boost Turnaround Times to Reduce Costs
It’s not unusual for turnaround times to fluctuate based on the individuals that are performing specific steps in a process. What can be a challenge is determining where the slowdowns in any process are and how to use that information to improve the overall efficiency and consistency of your processes. Corporate dashboards and proactive reporting tools may be exactly what your teams need to be successful, but does your team have time to implement yet another new technology? If not, you may need to search for IT services in Virginia Beach to support your infrastructure so your team can focus on new initiatives.
Create Proactive Plans to Retain Your Best Customers
Most marketers will quickly inform you that there is a significant difference between the costs associated with obtaining and retaining customers. Studies show that a minimal 5% increase in customer retention can boost profitability by anywhere from 25-95%. When you add this to the dramatically better selling rate for current customers of 60-70% versus anywhere from 5-20% for prospects. Automating your marketing and advertising can help your business stay in touch and keep your customers engage with your brand.
What do each of these recommendations have in common? They all require that your business has a strong infrastructure with exceptional networking and support. Learn how the HRCT team can help supercharge the growth potential for your business with IT services in Virginia Beach when you contact us today at 757-255-8952 or fill out our quick online form to schedule your free initial consultation.