The strategy centers around increasing bag revenue profit margins by 30%, coupled with enhancing the customer experience and significantly boosting the Net Promoter Score (NPS). The first tactic involves conducting a thorough cost analysis. This entails identifying current production and sales expenses, seeking more cost-effective suppliers, and using alternative materials to lower costs. For example, the business might renegotiate supplier contracts or benchmark costs against industry standards to pinpoint inefficiencies.
The second strategy focuses on optimizing the customer journey by mapping it to identify pain points, collecting customer feedback, and improving the experience design. For instance, enhancing product pages with enriched content like 3D views can significantly increase engagement. Offering seamless returns and improving checkout processes are key steps in this strategy.
Lastly, revamping marketing and sales involves identifying high-value customer segments and developing targeted campaigns, such as leveraging social media influencers to expand reach. Moreover, optimizing SEO and investing in digital ads are essential to improve visibility and drive sales. Hosting virtual events can also enrich customer interaction and engagement.
The strategies
⛳️ Strategy 1: Conduct a cost analysis
- Identify all current costs associated with bag production and sales
- Determine the variable and fixed costs within the current structure
- Benchmark costs against industry standards to find inefficiencies
- Evaluate supplier contracts for potential renegotiation of terms
- Implement a cost-management system to track expenses
- Explore alternative materials that maintain quality but reduce costs
- Analyse logistics for cost-saving opportunities
- Issue a request for proposal to compare and select more cost-effective suppliers
- Develop a report on the potential cost-saving measures and expected impact
- Create a timeline for implementing cost-saving changes
⛳️ Strategy 2: Optimise the customer journey
- Map out the current customer journey and identify pain points
- Gather customer feedback through surveys and focus groups
- Create a customer journey task force to rethink experience design
- Implement improvements in the checkout process to reduce cart abandonment
- Enhance product pages with enriched content like 3D views or videos
- Offer a seamless returns process to boost consumer confidence
- Personalise customer interactions using data analytics and AI
- Increase communication channels like live chat for real-time support
- Monitor customer service KPIs and make improvement plans based on insights
- Regularly measure and respond to NPS data to enhance service delivery
⛳️ Strategy 3: Revamp marketing and sales strategies
- Identify target customer segments that align with profit goals
- Develop tailored marketing campaigns to attract high-value customers
- Leverage social media influencers to expand your reach and brand image
- Optimise SEO to improve online visibility and organic traffic
- Increase investment in digital ads with a focus on conversion metrics
- Utilise customer data to create personalised sales messages
- Host virtual events or webinars to engage directly with customers
- Offer incentives for customer referrals to grow your customer base
- Implement A/B testing to optimise website elements for conversion
- Review and adjust pricing strategies to align with customer demand and profit goals
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
