Don’t Degrade Customer Experience When Cutting Costs
When companies cut costs, they often end up doing so in ways that ultimately hurt the company. By trimming budgets in departments such as sales, marketing and product development, or in categories like employee benefits and travel expenses, they reduce a variable cost only to put their long-term revenue at risk.
By cutting salaries or employees, for example, employee morale tends to decrease, which could end up affecting their productivity and their willingness to provide extra hours in support of the company. And by cutting department budgets in areas like marketing and advertising, businesses risk being able to expand their customer base.
To reduce the cost side of the equation without hurting revenue, businesses should think about whether an expense ultimately ties into customer experience.
Energy use, for instance, is generally not an area that intersects with customer experience. In almost all cases, your customers have no visibility or interest into your energy usage or performance, meaning that it’s a good area to look for cost savings first before slashing other budgets and ultimately putting customer satisfaction at risk.
In addition to improving the bottom line, reducing energy costs has an added bonus. In 2015, sales of consumer goods from companies committed to sustainability grew over 4% globally, while those without a demonstrated commitment grew at less than 1%, according to Nielsen. Also, according to the 2015 Nielsen Global Sustainability Report, 66% of global respondents in a 2015 Nielsen study reported willingness to pay more for sustainable products and services. This is up from 55% in 2014 and 50% in 2013.
So, by taking steps to reduce their energy bills, companies can not only cut costs without upsetting customers, they can also help the revenue side of the equation.
8 Step Process
The following steps offer a data-driven, building-specific way to implement an informed and productive management plan to reduce your energy costs:
- Secure your utility bills and interval load data
- Create a baseline using Energy Analytics Software
- Review findings from analysis and identify key energy cost drivers
- Perform a facility audit to evaluate operations and on-site equipment
- Determine utility incentives and financing options
- Develop medium and long-term energy efficiency plan
- Install measures
- Evaluate real-time energy data using Energy Analytics Software
See “The 8 Step Process to Develop and Implement an Energy Management Strategy For Your Business” at http://www.artisenergy.com/artis-energy-resources for further information.
For assistance in developing an energy management strategy for your business, please visit www.artisenergysolutions.com and request a building evaluation
Request a complimentary energy efficiency assessment to find out how Artis Energy’s RTIS® energy analytics platform can provide you with the visibility and insight to transform energy from a fixed cost into a distinct competitive advantage.