For a company to operate successfully, it is important to pay attention to the economic principles of business, that is, to focus on the degree of success in achieving the set goals. In other words, the goal is to achieve the desired result with as little investment as possible. Business efficiency is directly proportional to the company’s business results, and the most important principles to be adhered to are productivity, economy, and profitability.
Labor productivity is the result of the ability of workers to make progress in business at a certain cost. In other words, productivity is the relationship between product and labor expended over time. To increase productivity, it is often necessary to increase investment, ie to enable additional employment of professionals. Thus, as the number of workers increases, so does the quantity produce.
Several key factors affect productivity, and they are divided into two groups – external and internal (organizational). We consider all those technical and social factors as technological factors – technological procedures, level of organization, cultural level of society, laws, traffic, custom, technical equipment, and so on. Internal factors include qualifications, organizational measures, selection and decision-making on technical elements, and work intensity.
The analysis of the change in the effect of all factors that condition productivity is performed to identify their effects, measuring and finding their causes, and to evaluate their effect on productivity and the quality of business success. Achieving optimal productivity is a constant task of management through the appropriate organization of work and ensuring adequate business processes. The importance of labor productivity is that without its growth progress cannot be imagined at all, and it is reflected in determining the degree of development and competitiveness of the economy, measuring the efficiency of labor consumption, and finding the inefficiency of some part of the business process.
How then to increase productivity, and therefore income? There are several steps you need to take to succeed.
1. Organizational measures
We have already mentioned that it is first necessary to invest in various aspects to secure revenue and increase productivity. By this is meant raising the qualification structure, optimal intensity, and organizational rationalization. So, before you take any steps, you need to make a plan that you will stick to.
2. Human resources and improving labor productivity
Money best motivates workers to do their best. Compensation can be earned in many ways – pay per performance, salary with years of service, promotion offers, or non-monetary compensation given in the form of different courses and training.
3. Invest in digital marketing
We all know that the Internet is the most powerful advertiser. Today, there are hundreds of ways to advertise via the Internet, and among the most effective have been advertising on social networks. In addition to social media, there are also email newsletters and more. Research shows that almost 80% of online searches end up in the kitchen. In addition to advertising, your company must have a website so that customers can see what you are offering.
4. Encourage referrals
People very often rely on customer reviews and consider them the most credible representation of the value of the service a particular company provides. It is therefore important that you provide the best service and allow customers to leave a comment. What has proven to be effective is rewarding regular customers if they bring a new customer to your company. The reward can be in the form of a discount on the next purchase, or a gift voucher, or Amasty gift card. In this way, you will start to increase your income and move towards constant growth.
5. Low prices, or even better – raise it!
Lowering product prices will probably bring you new customers, but also lower earnings. On the other hand, raising prices can bring you both good and bad. On the one hand, you can lose existing customers, but you can also earn more. What is important is that you follow the reactions of customers to the change in prices and that you adapt to it. Sometimes the rise in prices tells customers that this happened for a reason because it dictates the quality of the product. In any case, let the growth be gradual and accompanied by customer reactions.
6. Bundle products
Customers love it when you offer them something at a lower price. For example, if you sell shoes and bags, make a 20% discount on the total price if the customer buys the right bag with the shoes she planned. Or, if you’re selling shoes and a bag at a regular price, let a scarf that fits perfectly into that outfit be free.
7. Influencer as an associate
Today, there are thousands of successful influencers who are happy to follow hundreds of thousands and even millions of people around the world. Hiring them as associates can be a very smart move! Take for example that you sell women’s clothing. If you sponsor a fashion influencer who has hundreds of thousands of companions with goods from your store, and if he marks you in a post with a dress from your store, you can be sure that you will receive many more orders very soon! Of course, you also need to have open profiles on social networks, so that customers have an insight into your products.
8. Increase your geographic reach
Today, many jobs and purchases end online, and that’s why it’s very important to expand your horizons beyond where you do business. Face-to-face contact has long since been overcome, and communication via the Internet has taken the lead. To make effective contact with potential customers of your services, launch the Customer Support option, so that customers can communicate directly and inquire about a particular service or product before starting a collaboration.
You will often hear that any business that operates successfully at some point begins to fail. But this does not have to be the case if you do your best to maintain it and if you listen to the needs of clients, finding a strategy that will benefit both you and them. Sometimes it requires a little more investment and more time, but in the end, it pays off.