The stronger your business is, the less likely it is to be affected by risks or unforeseen events, like an economic crisis. Strengthening your business doesn’t just involve financial management. It also includes strategies to retain and broaden your customer base, market your business affordably, keep morale high amongst your staff and improve business practices. In other words, business management becomes crucial in all of this. Here are a few reasons why business management is vital to develop your existing business in the midst of economic instability.
It helps reviewing and renewing marketing strategies
Reviewing your marketing strategies can help you come up with new ideas to increase sales and find better ways of using your marketing dollars. You should focus on communicating your competitive advantage. Your unique selling proposition should also assist you to stand out from the crowd. In addition, it’s important to develop strategies to measure the effectiveness of your marketing.
Marketing your business can be an expensive exercise, and during an economic downturn it’s especially important to explore free marketing tools available to you, including social media and word-of-mouth advertising, all of which good business management includes.
It helps improve customer service and retention
Customer service is about providing customers with what they want, when they want it. If your business provides quality customer service, you are likely to retain your existing customers. This also means you have a greater chance of keeping and increasing your client base. This may mean pivoting your business towards new markets or products and services.
Making customers a priority in an economic downturn may also involve:
- Running loyalty or customer incentive programs
- Adapting your products and services to be more suited to your customer’s current needs
- Diversifying your business to minimize potential damage from the loss of a significant customer.
During a financial downturn it is particularly important to find ways to retain your existing customers by providing good after-sales service.
It grows networking
Networking during an economic instability or downturn can be useful to understand how other businesses are coping. You may also discover new opportunities, customers, staff, suppliers and business partners with minimal cost to your business. Consider forming alliances with other businesses, for example, by offering complimentary services and discounts.
All of the above mentioned factors come within the parameters of a well developed and executed business management plan. This is why, businesses in Sri Lanka, especially now, must focus on implementing the best possible business management strategies that they can.
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