How businesses are balancing high customer expectations with even higher operational costs
Over the last 12 months industries around the country have found themselves navigating the push and pull of increased costs and heightened customer demand.
In the 2024 Business Radar Report 83% of businesses agreed that consumers were demanding a more tailored and personalised approach and expected that companies of all kinds deliver, technological, digitally connected experiences throughout every stage in the buying journey.
The problem: many businesses are already in the red zone when it comes to expenditure. The surge in cost of living and cost of doing business (CODB) over the last 12 months has left little left to invest in business expansion and enhanced experiences.
However, there are brands who have found their way, and they’ve done it through the clever and strategic adoption of technology and AI.
Cost rises in Australia – an overview
2024 data shows that the top four factors to negatively impact businesses are all centred around costs. Labour expenses, inflation and interest rates have increased dramatically, while operating costs have surged 32% overall.
Contact Harald Chief Technology Officer, Barton Ip says the way business needs to be done has changed drastically over recent years, but the opportunities are there for those who are willing to move with it.
“The last three or four years have fundamentally changed the rules for businesses. Customers want more from their experiences, meanwhile brands and organisations are on a rollercoaster ride of rising costs in every area of operations,” he said.
“By introducing new technology and digital tools, businesses can improve production processes, automate repetitive tasks, enhance customer experiences, and reduce labour expenses,” Barton said
How technology counteracts cost rises – a case study in the auto industry
The problem: auto dealers are experiencing excessive labour costs (51.4%) and traditional models of doing business are no longer matching customer expectations.
Traditional auto dealership models have relied heavily on manpower alone, this is now proving problematic for a number of reasons:
- High labour costs cut into profitability
A model that relies solely on manpower will ultimately lead to higher labour costs and reduce profit potential.
- Slow response times lose customers
Customers expect immediate, connected experiences. This starts from the moment they begin to explore, through to a potential sale and beyond. Anything less, and dealers will quickly lose customer interest and long-term loyalty. By relying solely on human touchpoints, sales opportunities are bound to get missed.
- Teams that do it all lose valuable sales time
Administrative and time-heavy tasks take sales teams away from what they’re meant to do: sell cars and products.
- Employee burnout
Once a dealership team is working at its peak, productivity gains are capped. Pushing beyond usually proves to be counterproductive with lower levels of efficiency, enthusiasm and engagement.
The solution: Dealers automate admin and increase sales potential
Smart technology and AI has come a long way since the emergence of assistants like Siri and Alexa. In fact, advanced systems are now being used by dealerships around the country to reduce the costs and pressures noted above.
AI systems like Ask Harry help reduce costs by:
- Automating admin, therefore freeing up salespeople to do more selling.
- Enabling handover of repetitive tasks to AI.
- Enable a 24/7 sales model – your tech continues to generate leads and sales while your team sleeps.
- Create end to end customer experiences (without the additional clocked hours).
It’s time to work smarter
No matter the industry, there’s no question that it’s time for businesses to build systems, processes and technology around their people to enable smarter working.
This doesn’t mean heavy infrastructure or complicated processes, in fact the best tech will integrate seamlessly with your current work flow.
Adopting technology is not about adding more flashing lights or jumping on trends, it’s simply about overcoming unsustainable CODB and helping your people do more, with less.
Ready to elevate business operations and slash operational costs?
Chat to our team about Ask Harry and discover how your business could benefit from smart working systems and AI technology.
