The main function of any business is to make money. Businesses that make money can serve their customers and industry better, whereas businesses that lose money typically aren’t in business for much longer. That’s why the “bottom line” is always of such great concern for companies of all shapes and sizes. Being set-up for long-term financial growth is key to success, and that means not only increasing sales, but also properly managing both time and expenses.
Cost saving initiatives, if done properly, are important for business growth. However, as Isaac Newton said, “for every action, there is an equal and opposite reaction.” So, what are the possible consequences for your business as you explore ways to save money? Well, invariably it is when these efforts end up taking something valuable away from your customers.
The key in any cost saving initiative is to make sure that it is adding value for your customers, and not taking anything away from them. If you find your business implementing cost saving strategies that are not an improvement on your product or service, then it’s time to take a step back and re-evaluate.
How can you turn on cost saving initiatives without turning off your customers? Hint: The answer isn’t to cut corners.
- Costs are rising, but budgets are shrinking. Save money and improve profitability by taking more control over your processes. According to the 2019 Global Meetings and Events Forecast, despite the fact that event companies have seen a huge increase in event activities in recent years, businesses are simultaneously experiencing shrinking client budgets. With rising airfares, labor costs, venue costs, and more, how can you not only meet, but exceed your customers’ expectation when they continue to expect you to do more for less? The key is optimization. When you have the right tools to manage your processes, such as crew scheduling and management, you are able to do more for your customers, for less cost, while also increasing your overall profitability. Ensure that your cost saving initiatives enable both workflow and financial transparency so that you can make better and more cost-effective business decisions and, in turn, deliver beyond your customers’ expectations, each and every time.
- Save money by eliminating needless manual work in your internal operations. You may be thinking, what do my internal processes have to do with my customers? The answer is, everything. When your team is spending needless time entering data such as crew hours worked, overtime, or even show schedules manually, they are not able to spend as much time building quality customer relationships. When they have to call 20 crew members just to fill one position, let alone make sure that those people are the right people and communicate changing event details with them, that time is not spent growing your customer base or improving customer satisfaction. In other words, that is your opportunity cost. Ensure that your cost saving initiatives not only make you more operationally effective, but they also allow you more time to focus on what makes your business grow.
- Save money and stay competitive by simplifying and streamlining your workflow. The event & entertainment industry is highly competitive. From large players that have deep pockets to the smaller and mid-sized companies that are innovative, you are under pressure and battling competition at levels unheard of in other industries. With competition this high, it’s critical that your workflows are buttoned up. By simplifying, streamlining, and automating workflows, you are saving your team time, and your company money. That way, you will be able to provide improved services to your customers that help you stand out from the crowd.
When you make cuts to customer-facing elements, like your crew, your gear, or your service levels, you run the risk of losing customers. The focus should always be on areas that don’t negatively impact the customer experience. The focus should be on areas of continual improvement that will ultimately either enhance the customer experience or leave you with more time to focus on your customers. Request a demo of the LASSO platform today to see how we can help you beat the competition by simplifying your processes and creating healthy, profitable workflows.
