(2 minute read)
The benefits of process optimization, from those related to marketing and sales to the operations and logistics ones, are often summed up in cost savings. However, at Bionline we believe that that conclusion can be further developed. We consider that process optimization implies, besides those savings, the definition of new opportunities that may yield results that are unattainable in any other way.
In this article we will focus on two of these opportunities: obtaining a higher return with the same budget, and achieving the same result with less investment.
As we know, this optimization process is facilitated by the quantity and quality of the available data of the companies. Nowadays, they have more information about their clients than ever, which makes an ideal situation to consider an action like this.
1. Higher performance, same budget
By optimizing processes, people in charge of projects that have a closed budget will be able to obtain better results with it. This is, a higher performance.
This happens thanks to the better allocation of resources in the different actions throughout the project in hand, avoiding unnecessary costs, anticipating possible failures and boosting those activities that are most favorable for the project.
For example, if a bank wanted to launch a campaign to prevent customer churn or abandonment, optimizing the audience selection to which the campaign would be launched, it can obtain accuracy rates up to 20 times higher.
2. Less investment, same result
Process optimization also allows clients who manage projects that are significantly objective-oriented to achieve them using a lower budget than the one initially planned, or using fewer resources than they estimated.
In the same way as in the previous case, this is achieved thanks to an optimal allocation of the available resources, which in this case would stop as soon as the defined objectives were achieved.
If a supermarket wanted to launch a campaign to reach a certain level of sales of a certain product, thanks to the optimization of the selection of the target audience, it would use a smaller budget to obtain that level of sales due to the greater conversion rate of the selection, which can be up to 6 times higher.
With these simple examples of the opportunities that optimizing its processes can bring to a company, we observe that optimization itself can be a strategic activity, since by allocating its resources more efficiently and obtaining in its processes much better ratios than the industry’s average, they would enhance their competitive advantage.