How to Keep Your Operating Costs Down
Managing operating costs is an integral aspect of running a successful business. The higher they are, the smaller the margin on each generated sale. This limits the amount of cash available to invest in business-growing activities. While some costs are fixed and difficult to reduce without taking drastic action, variable operating costs can be lowered through streamlining processes and the adoption of digital technology.
Traditional Communication Drives up Expenditure
Businesses need to communicate with their customers, prospects, suppliers and other stakeholders. The issue is that many continue to rely heavily on physical mail as it’s what they’ve always done. Documents have to be printed, inserted into envelopes and posted, while pre-printed correspondence has to be stored– perhaps in locked filing cabinets if it contains confidential information. Each step in the process costs money and much of it is unnecessary.
Multi-Channel Communications Can Lower Costs
With a range of communication channels now available, recipients have more choice about how they want to be contacted. For example, instead of receiving invoices via physical mail, customers may prefer them sent via email as it suits their own processes more. Likewise, some end-user consumers would rather have reminders sent via SMS so they can more easily add entries to their smartphone calendars. In both cases, switching to digital channels empowers businesses to increase engagement and satisfaction, while also driving down costs through the eradication of unnecessary printing, storing and postage charges.
Web-based Output Management Software
Another way to cut costs is by adopting digital Output Management Software (OMS) which automates outgoing document processing. When communications are processed manually it takes up time and effort, limiting the resources available for business-growing activities. Moreover, a consistent requirement for human involvement only increases the likelihood of errors being made which may result in remediation costs.
Another benefit of such software is that all outgoing correspondence, regardless of the channel it’s being sent out across, is scanned and archived securely in the cloud. There it can be accessed and retrieved from anywhere with an internet connection, removing the need for physical storage while also providing businesses with assurances around the security of information.