Balanced Financial management

Within the Customer Management environment Financial Management is critical to provide the right level of service to the customer at the appropriate cost to the company. It is regularly assumed that the cost of Customer Management should be delivered with the least possible expenditure. This often creates a lack of business integration and alignment, not to mention average/poor service delivery.

This combined with a failure to understand the primary importance of Customer Management services has resulted in a limited view of their value. Cost minimalisation in this environment often results in services that limit a businesses ability to maximise the benefits that can be leveraged from outstanding Customer Management.

This does not negate the need for effective control of costs. However, such cost controls need to be tempered by the value of services delivered and their contribution to the business overall. Lorem’s approach is to view Customer Management as an opportunity for profit rather than a burden of cost.

Customer Management and its costs must be gauged in terms of outcomes and financial contributions. Financial contributions can be well defined and measured. With in business management circles such measurements are often overlooked. While financial measurements can be complex they are imperative to quantifying and justifying services and their values.

It has always been vital that financial management is sound. Lorem recognises that the contribution of Customer Management through sales and service is directly related to business profitability. The value of this and what it means for businesses should not be understated. Through Customer Management businesses have an avenue to speak to and deal with their customers.

Service based on a sound financial approach is a way to maximise existing customer value and to acquire additional customers.

Financial management is not simply based on the cost of services and their control. Defining Customer Management in profit rather than cost terms has changed the landscape irrevocably.

Financial contributions through Customer Management need to be measured and assessed in a variety of ways. Lorem’s approach to Financial Management ensures contributions can be identified, achieved and sustained. Below is a summary of areas whose management can be refined to minimise cost and improve service outcomes:

Refine existing operations to reduce current costs. This can be done in a variety of ways e.g. improved productivity, streamlined management
Improvement of retention and associated training/recruitment costs
Reduction of operating costs (through the use of technology/process etc.)
Minimisation of technology and telephony costs
Quantification of improvements in acquisitions as they pertain to customer value and contribution to profits
The quantification of sales improvements through customer retention (in terms of improved business revenues)
Streamlining of reporting and analysis to direct changes and improvements

Lorem’s approach is based on a business modelling template under the framework of our PFHOT methodology that ensures all the elements of Customer management are considered.

© Copyright 2006 The Lorem Group Pty Ltd Designed and Hosted by Lighthouse Interactive Pty Ltd

© Copyright 2006 The Lorem Group Pty Ltd
Designed and Hosted by Lighthouse Interactive Pty Ltd