Gaining Strategic Insight For Higher Profits

January 11, 2014 | Author: | Posted in Business

The success of a business is mainly determined by how well it is managed. Good management includes many things like effective marketing and considerate customer service. Strategic insight that will increase the profit of a business does not need to be extremely technical, however, managers often get lost trying to work everything out for their business. Strategy is also rather a vague term that is often not properly understood.

Managers who have attended training courses may be familiar with certain strategical concepts that are known to improve the way a business is run, both internally and externally. One makes use of a few circles, and is a simple tool that is used to display the relationship between a business and its clients. This representation can assist managers when it comes to decisions as well.

Each circle drawn represents something different. The first will contain the most important things to consider regarding the company’s customers. Here it is necessary to determine what the customer wants, for example, a quick service delivery, because their time is valuable, and limited. Spending time discovering what the customer wants can help the company change in ways that will benefit the customer, and which will therefore increase profits.

Even though customers are sometimes more silent than vocal, a business needs to consider what they need most, and how they feel about the services or products that are on offer. The second circle will determine how positively or negatively the client relates to the business, from the view of the team leaders. The more the first two circles cross over each other the better the business is handling their customers.

Unfortunately, customers rarely ‘make notes’ of exactly what products they will buy. A business has to research what will make someone’s life easier, or better, and then produce something that they think will actively sell. If it is a product that meets the customer’s needs, it will be a successful discovery. An example is the invention of the a particular product, by a renowned company, which brings in a near fortune in the category of home care products.

The last circle needs to contain ideas that relate to how the customer interacts with companies that provide similar services or products. Perhaps your competitors meet your customers’ needs more effectively, and the third circle allows you to see this more clearly. Every circle in the equation is important for gaining that competitive edge.

Many questions should be asked whilst filling in the empty circles. By answering different sorts of questions the team leaders will easily be able to place relevant information. Questions can also inspire interesting conversations that can lead to positive outcomes.

Strategic insight also encourages a business to look more closely at their existing services. Finding out more about customers may lead to the discovery that certain services are actually negatively viewed. With all the collected information, much can be done in terms of the growth and development of the company.

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