Profit pioneers-November 2023’s unique business landscape
ILLUSTRATION BY RUTH MACAPAGAl
In the ever-evolving business cosmos, each juncture brings forth distinct possibilities and challenges. As we embrace November 2023, the business arena is ripened with unique profit potentials awaiting to be harnessed by visionary CEOs and business owners. This month’s landscape is sculpted by various global trends, technological innovations and societal shifts that are worth delving into.
Let’s delve deeper into these trends and actionable steps businesses can take to capitalize on the opportunities they present.
Attracting more customers through sustainable
business practices
It’s now official! As CNN reported past week, 2023 is now the hottest year on record, probably even the hottest in the last 125,000 years! What does that mean for businesses? Sustainability becomes a focal point for gaining and retaining customers in these times of change.
Here are specific measures businesses can take:
1. Market sustainable initiatives:
Transparency: Be transparent about your sustainable practices. Share your journey toward sustainability through your website, social media and marketing materials. This builds trust and attracts environmentally conscious consumers.
Storytelling: Tell the story behind your sustainable practices. For instance, if you use recycled materials, share the origin story of these materials and how they contribute to a better environment.
2. Sustainable branding:
Eco-friendly packaging: Use packaging that is recyclable or biodegradable. This not only reduces environmental impact but also appeals to eco-conscious consumers.
Green certifications: Obtaining certifications like Fair Trade, Organic, or LEED (Leadership in Energy and Environmental Design) can attract customers who look for these labels as a mark of sustainability.3. Innovative green products:
Develop eco-friendly products: Introduce products that are made from sustainable materials or that contribute to a lower carbon footprint.
Highlight benefits: Emphasize not just the environmental benefits but also the quality and longevity of your eco-friendly products.
Increasing consumer loyalty through sustainable practices
By integrating sustainable practices, businesses not only contribute positively to the environment but also build a brand that resonates with an ever-growing demographic of environmentally conscious consumers, leading to increased customer attraction and loyalty.
1. Engagement in sustainability efforts:
Community initiatives: Engage in local environmental initiatives. Inviting customers to join in these efforts can create a deeper connection and loyalty.
2. Consistent communication:
Sustainability Reports: Regularly release sustainability reports to keep your customers informed about the progress and impact of your green initiatives.
Educational Content: Provide educational content about sustainability through blogs, newsletters, or social media. Educating customers about environmental issues can deepen their loyalty to brands that are part of the solution.
3. Sustainable customer experience:
Sustainable supply chain: Ensure that your entire supply chain adheres to sustainable practices. Customers are increasingly concerned about the ethics of not just the products they buy but also the entire supply chain.
Example: food and beverage industry
Restaurants and cafes can source locally grown, organic ingredients and use biodegradable packaging. They can also participate in community gardening or composting programs. This not only attracts customers who are conscious about what they eat but also those who appreciate the efforts to reduce environmental impact.
Digital transformation: Leveraging technology for enhanced profitability
Artificial intelligence (AI) and digital transformation have reached new heights in the past two weeks after Elon Musk announced its own AI venture, and companies like OpenAI are constantly expanding the reach of ChatGPT and its other creations. What does that mean for you as a business leader? How can you surf on top of that wave to glide past your competitors?
Through digital transformation, businesses across various industries can not only streamline their operations and reduce costs but also enhance customer experiences and access new markets, all of which contribute significantly to increased profitability.
Here are some ideas how you can use digital transformation to increase profits:
1. The AI advisor:
With the AI revolution fully underway, make sure you know about all the unique opportunities that exist for your business and your industry.
A competitor who understands how to use AI better than you may beat you in 2024 just because of that extra competitive edge. Get an AI advisor, consultants or experts who understand AI and how to apply it to your business because it is virtually impossible for people in your organization to stay up to date unless they are doing this full time. The speed of change is just too drastic.
From our own client experience, we have learned to take this change very seriously. So much so that we enlarged our own AI division substantially in early 2023 to give our clients even more of an ultimate cutting edge.
2. Enhancing customer experience:
• Personalization: Use AI and data analytics to personalize marketing efforts and customer interactions. Personalization leads to higher conversion rates and customer satisfaction.
• Online platforms: Develop user-friendly websites and mobile applications that make purchasing easy and convenient, leading to increased sales.
3. Data-driven decision-making:
• Analytics: Employ data analytics to glean insights into customer behavior, market trends and operational inefficiencies. This informs strategic decisions that can optimize profitability.
• Predictive analysis: Use predictive analytics for forecasting sales trends and customer demands, allowing for more precise inventory and supply chain management.
Example 1: Retail business
• A clothing retailer could implement an online shopping platform with a personalized recommendation engine. By analyzing past purchase data, the engine suggests products, increasing the likelihood of additional purchases. Additionally, using an automated inventory management system linked with their e-commerce site can ensure stock levels are optimized, reducing holding costs and lost sales.
Example 2: Manufacturing company
• A manufacturing firm can integrate IoT (Internet of Things) sensors in their machinery for real-time monitoring and predictive maintenance. This reduces downtime and maintenance costs. They can also use AI for optimizing supply chain logistics, finding the most cost-effective and efficient routes and methods for material transport.
Example 3: Service industry (e.g., Restaurants)
• Restaurants can implement online reservation systems integrated with customer relationship management (CRM) tools. This not only streamlines reservation processes but also gathers customer data for personalized marketing, like sending special offers on birthdays or anniversaries. INQ
Tom Oliver, a “global management guru” (Bloomberg), is the chair of The Tom Oliver Group, the trusted advisor and counselor to many of the world’s most influential family businesses, medium-sized enterprises, market leaders and global conglomerates. For more information and inquiries: www.TomOliverGroup.com or email [email protected].
