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Understanding the difference between revenue and income is crucial when you are running a business strategy.

Revenue and income are two terms that are often mixed up even though they are two different things.

As reported by Paddle, in business, revenue is the top line (income or total income from products or services).

Meanwhile, income is the bottom line (revenue minus production costs) so the difference between the two is clear.

Both revenue and income have important values ​​for a business.

Understanding the difference between revenue and income will help you understand the development and financial stability of the business.

What are the differences between the two? Read more below.

Revenue in Business

Quoted from Investopedia, revenue is the total income or income generated from the sale of products or services related to the company's main business.

Revenue in business is also known as gross sales or the amount of gross sales.

As previously explained, revenue is also called the 'top line' in business because it is at the top of the company's financial statements.

The revenue value is the income generated by a company before being reduced by any costs.

So, when a company or business experiences top line growth, it means that the company is experiencing increased sales.

A business can generate revenue from various sources, including but not limited to the following:

• sales of products, services, and assets;
• advertising;
• licensing agreements;
• payment for services;
• subscription fees; and
• rental income.

Income in Business

Income or net profit is the total income or profit of a company.

Usually when an investor or financial analyst talks about a company's profit, what is meant is the company's income.

Revenue and income are often equated because both are positive cash flows from a company.

In fact, income is the bottom line in a financial context, where the income value is at the end of the financial report after deducting all needs or expenses.

Quoting Business, a company's income can be negative if expenses exceed its final income during the period.

If income is negative, then the company is experiencing a loss. Income has two categories, namely gross income and net income.

• Gross income: total income recorded before taxes and expenses for the company are deducted.
• Net income: total net income after deducting the costs required to run the business. Net income describes the efficiency of a company in spending and managing their operational costs.

Differences between Revenue and Income

The main difference between revenue and income can be seen from how the two are defined.

Revenue is the total income or income from a company that comes from various sources.

Meanwhile, income or earnings is the final income value that arises from income minus expenses for running the business.

Well, these costs include taxes, rent, commissions, and production costs. A decrease in revenue is also known as a revenue deficit or income deficit.

Other differences that need to be understood between revenue and income are as follows:

1. Recording Section on the Report

If revenue is the top line, income is the bottom line. The purpose of this statement is the different revenue and income sections on the financial statement or income statement.

Revenue is considered the top line of total business income and income on the bottom line.

That is why even though they are closely related and intersect, revenue and income cannot replace each other's functions.

2. Calculation Differences

Although revenue is calculated by multiplying the total number of products and services sold by their price, income is calculated by subtracting expenses, costs, and taxes from all total income.

The Importance of Understanding the Difference Between Revenue and Income

Understanding the relationship and differences between revenue and income in business allows you to measure progress, analyze potential, and prepare the right business strategy.

According to Paddle, here is the importance of understanding the difference between revenue and income for your business:

1. Financial Statement

Understanding how to monitor revenue and income separately is the key to creating accurate and clear financial statements.

Be sure to calculate all aspects that will be included in revenue including investments that come into the company.

For income, it is necessary to pay attention to different expenses in each business area.

2. Financial Reporting

A good understanding of the difference between revenue and income also allows financial reporting to be more representative and effective.

Representative financial reporting is important for analyzing the profit and loss factors of the business being run.

This will also help you see better the potential and problems that need to be addressed immediately.

To understand financial reporting analysis well and produce representative reports, you can also learn by taking a Financial Analysis class.

prasmul-eli has a Financial Analysis class with instructors who are experts in their fields.

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3. Tax

Understanding revenue and income is also important for managing tax documents. The last income value or figure is the figure before tax.

You must understand the tax requirements and important steps to prepare the company's financial documents.

4. Investors

To get investors, companies do not only need revenue, because that is not enough to convince investors.

Understanding the dynamics and differences between revenue and income will help create and demonstrate a broader understanding of business operational efficiency to investors.

Don't let yourself not understand this before running a business, okay!

Understand the differences and develop an effective strategy for your business!

To create a good business development strategy, it is important to understand what organic and inorganic growth are and the differences between the two.

Business growth or development has become one of the determinants of the success or failure of a business itself.

Both in product sales and services, business growth needs to be thought through carefully so that the direction is always clear.

Well, so that you don't take the wrong steps, you must know what organic and inorganic growth are and the differences between the two.

Read more in the article below.

What is Organic Growth

Quoted from Indeed, organic growth is the growth of a business that is obtained from the production of regular activities and operations such as product sales or services.

A company that wants to grow organically must utilize its business model, practices, and employees to increase sales and services.

The efforts made by a business to grow organically also vary, ranging from product innovation, improving services, advertising in the media, and others.

This is also the basic difference between organic and inorganic growth later.

Reported by Preferred CFO, here are some of the advantages of using the organic growth method:

• Company management understands the business well. Because there are no mergers or acquisitions of companies, the company's management understands the company's business strategy and operations better.
• There are no significant integration challenges due to restructuring in the company. This is one difference between organic and inorganic growth, companies with organic growth do not face integration and restructuring challenges.
• Have more control over the company's goals and the business being run. Without mergers and acquisitions, the company will have more control over the business.
• Business is more sustainable. As explained, organic growth is more sustainable for the development of a business.

What is Inorganic Growth

Businesses that grow through inorganic growth carry out mergers and acquisitions or by expanding the company.

According to Indeed, inorganic growth can develop with several efforts such as opening a business in another location, taking out loans, or adding business lines.

Expansion or addition of business locations is an important part of inorganic growth, also an important effort for the development of the company.

Inorganic growth will increase the company's assets, operations, liabilities, and liquidity.

Despite the challenges of entering new markets and restructuring, inorganic growth has the following advantages:

• Faster business growth. Many businesses grow up to three times faster with inorganic growth efforts.
• Increased market share. Market share increases tend to be faster.
• Increased knowledge and experience. Merging with other companies will be in line with the increase in knowledge and expertise that the company has to develop the business.
• More competitive in market competition. New sources of knowledge and human resources, assets, increased market share means your business will be more competitive in the competition.
• Ease of taking credit. Taking credit for business development will be easier after a merger or acquisition.

Differences Between Organic and Inorganic Growth

Indeed says there are some basic things that are the differences between organic and inorganic growth.

In general, the difference between organic and inorganic growth can be seen from their meanings. Organic growth is a company strategy to develop internally or from within the company, while inorganic growth is from external/outside the company.

In addition to these basic things, here are some lists of differences between organic and inorganic growth:

1. Timeframe

The first fundamental difference between organic and inorganic growth in business is the timeframe of the impact that will be felt on the business.

Inorganic growth will have an impact on increasing in the short term through acquisitions or additions of business locations.

Meanwhile, increasing business with an organic growth strategy will require a longer and more stable period of time.

2. Risk

Inorganic growth will carry a big risk if you merge or acquire a company that has financial problems.

Another risk that may also arise is having to add business lines and enter new markets.

Meanwhile, the risk of organic growth tends to be lower because it is carried out simultaneously with efforts to develop existing products/services.

3. Impact on Business

A business strategy using organic growth will focus more on the products/services that the company already has at that time, so that the impact on the business will not be too great.

Meanwhile, in inorganic growth, greater challenges must be faced because there could be a termination or replacement of new products/services in the company.

In terms of market competition, organic growth will experience tougher competition.

For inorganic growth itself, competition will be more focused because the merger of companies will make it easier to lead competition in the market.

4. Effect on the Company's Future

For the future of the company, the difference between organic and inorganic growth can be seen from the rate or steps of development.

Organic growth will create a more stable future and a safer rate for the company's development.

While due to mergers or acquisitions, inorganic growth will make the company have more stakeholders who play a role in the company and reduce individual control.

5. Availability of Resources

One of the significant benefits of inorganic growth is the increase in resources from employees, experts, and other resources.

Meanwhile, organic growth has limitations because it relies on existing resources in the company.

Which is Better for Business?

Now, after knowing the difference between organic and inorganic growth, you need to choose the best of the two for your business.

Both have their own roles, advantages and risks in the development of the company. Not all companies or types of businesses are suitable for both.

If you want to develop a product or service, organic growth will be better. However, when the goal is to expand the company's business, you can adopt inorganic growth.

Companies with good business development are those that can adopt both business strategies in a balanced way.

In order not to choose the wrong business strategy, it is important to understand how to analyze both strategies.

The goal is of course to produce a strategy that can be implemented well and optimally.

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A Scrum Master is a professional who plays a key role in the implementation of the Scrum framework, a methodology in Agile project management.

They are responsible for facilitating and ensuring the effectiveness of the team in implementing the Scrum principles.

This article will discuss the definition of a Scrum Master in more depth, explain the roles they play, and outline the essential skills needed to become a Scrum Master.

What is a Scrum Master?

A Scrum Master is a job position or role in the world of software development, especially one that implements the Scrum methodology.

A Scrum Master has a specific role on a development team that is responsible for facilitating and ensuring the effective implementation of the Scrum methodology.

A Scrum Master typically works closely with the development team to help them implement the Scrum process consistently.

They also interact with other stakeholders to ensure transparency and good communication throughout the development process.

It is important to note that while Scrum Masters have the responsibility to manage the Scrum process, they do not act as project managers who control budgets or resources.

Their primary focus is to ensure that the team can work efficiently and adaptively towards the project goals by leveraging Agile and Scrum principles.

To make it easier to understand, imagine a team building a new mobile app. The Scrum Master will do the following:

1. Make sure everyone on the team knows what they are supposed to work on.
2. Have a short meeting every day to discuss progress and issues.
3. Help resolve issues that hinder the team’s work.
4. Teach new ways to work more efficiently.
5. Protect the team from outside distractions that could hinder the work.

The Scrum Master does not dictate what the team should do or how to do it. The Scrum Master focuses more on how the team can work together well.

The Role of the Scrum Master

The Scrum Master is a facilitator and leader who ensures the software development team is implementing the Scrum methodology effectively.

Their primary duties include organizing and facilitating Scrum meetings, removing impediments that hinder the team’s progress, and ensuring that the Scrum principles are followed.

Here are the main tasks of a Scrum Master:

1. Helping the Scrum Team:

• Teaching team members to work independently and help each other.
• Helping the team produce high-quality, standardized product parts.
• Eliminating things that hinder the team's progress.
• Ensuring that all important meetings such as daily standups and sprint planning run smoothly and on schedule.

2. Helping the Product Owner:

• Help the Product Owner create clear product goals and manage the list of tasks that need to be completed.
• Helping the team understand the tasks that need to be done clearly.
• Helping the Product Owner plan product development based on data and experience.
• Helping the Product Owner communicate and collaborate with other parties involved in the project.

3. Supporting the Organization:

• Training employees and stakeholders in using Scrum.
• Helping people in the organization understand the importance of using data and real evidence in their work.
• Removing communication barriers between the Scrum team and stakeholders.

Skills Required by a Scrum Master

A Scrum Master is someone who is responsible for ensuring the team works effectively and efficiently in achieving project goals.

To become a successful Scrum Master, a specific set of skills is required that combines aspects of leadership, communication, and problem solving.

Here are the important skills that a Scrum Master must have:

1. Leadership Skills

A Scrum Master must be able to lead a team, but not in the sense of a boss who likes to order around.

However, more like a friend who helps the team work well together. For example, by helping the team, facilitating the team, and supporting each member to develop.

With this leadership style, it will create a positive work environment and encourage creativity and innovation in the team.

2. Good at Communicating

The ability to communicate clearly and transparently is very important for a Scrum Master.

They must be able to convey information about project status, goals, and obstacles to all team members and stakeholders.

3. Empathy

A Scrum Master needs to have high empathy to understand the challenges faced by the team.

You must be able to provide emotional support and motivation, especially when the team is facing difficulties.

If you have this ability, of course it will help build trust and strong relationships within the team.

4. Problem Solving Skills

When the team faces difficulties, the Scrum Master must be able to help find a way out.

Therefore, you must have good problem-solving skills.

Starting from identifying the root of the problem, analyzing the situation, and finding effective solutions to keep the team productive.

5. Adaptability

The Scrum Master must be flexible and able to adapt quickly to changes in team and project needs.

For example, if there is a new way of working, you must learn quickly and not be rigid.

6. Facilitation Skills

The Scrum Master is responsible for facilitating various meetings, such as daily stand-ups, sprint planning, and retrospectives.

They must ensure that these meetings run smoothly, are focused, and produce the desired outcomes.

7. Coaching and Mentoring

One of the main roles of the Scrum Master is to be a coach and mentor for team members.

They must be able to guide the team to continuously improve performance and understand Agile values ​​better.

8. Technical Knowledge

While not mandatory, having a technical background can be very beneficial for a Scrum Master, especially when working with a development team.

Technical understanding helps you better understand the challenges your team faces and can communicate more effectively with technical team members.

9. Time Management

A Scrum Master must have good time management skills to ensure the team stays on track and achieves sprint goals.

Starting from helping the team in time estimation, prioritizing tasks, and managing the product backlog.

By mastering these skills, a Scrum Master can effectively lead their team.

However, it is important to remember that becoming a reliable Scrum Master is a continuous learning process.

Continuing to hone these skills and staying up-to-date with the latest developments in Agile methodology will help the Scrum Master to continue to grow.

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Have you ever wondered what forecasting is in the business world?

If you are running a business, making strategic decisions based on in-depth analysis and accurate predictions is very important. One tool that supports this process is forecasting.

Forecasting is not just predicting the future based on historical data; but also becomes the foundation for intelligent and adaptive planning in facing market dynamics.

This article will outline the importance of forecasting in a business context, revealing how this technique helps anticipate market changes, as well as supporting efficient resource allocation.

What is Forecasting?

Forecasting is a technique for predicting future events based on historical data and current conditions.

In the business world, forecasting is used to estimate sales, market demand, or economic indicators.

Companies use forecasting results to make decisions about hiring, expansion, and other business strategies.

Investors also use forecasting to analyze stocks, determine transaction timing, and identify market trends.

Although forecasting attempts to predict the future, it is important to remember that the results are not always 100% accurate.

Because, there are several unexpected factors such as sudden economic changes or natural disasters that affect forecasting results.

Forecasting Method

After knowing what forecasting is, also know the method for carrying it out. Actually, there are two main approaches used in forecasting, namely qualitative methods and quantitative methods.

Both of course have their respective advantages and disadvantages. The following is the explanation:

Qualitative Method

This method is subjective and based on the judgments and opinions of experts or consumers. Qualitative methods are used when no past data is available.

Some examples of qualitative methods include:

• Delphi Method: Asking a group of experts to provide their estimates anonymously and then averaging the results after several rounds of discussion.
• Market Research: Using surveys and interviews with consumers to predict future product demand.
• Scenario Analysis: Developing several plausible scenarios based on assumptions about future conditions.

The following are the advantages and weaknesses of qualitative methods:

Advantages:

• Flexible and able to adapt to changing conditions.
• Incorporate knowledge and experience that may not be captured in numerical data.
• Can handle unusual events.

Weaknesses:

• Subjective and prone to bias.
• Can ignore or underestimate certain factors.
• Focusing too much on recent events and ignoring long-term patterns.

Quantitative Methods

This method is objective and mathematical, which uses numerical data from the past to make predictions for the future.

This method is suitable for use when there is sufficient past data and the data pattern is expected to continue in the future.

Some examples of quantitative methods include:

1. Time Series Analysis:

This method analyzes historical data (such as sales figures) to find patterns or trends.

For example, if sales always increase during the holiday season, we can predict that sales will increase again this year.

2. Regression Analysis

Assess the relationship between the dependent variable and one or more independent variables.

For example, companies can use regression analysis to understand how advertising spending affects sales.

By understanding this relationship, companies can make better plans.

3. Econometric Models

This model combines economics, mathematics, and statistics to analyze economic data. For example, how changes in interest rates affect investments.

The following are the advantages and weaknesses of quantitative methods:

Advantages:

• Objective and reduces bias.
• Consistent and repeatable.
• Processing large amounts of data.

Weaknesses:

• Stiff and difficult to adapt to sudden changes.
• Cannot easily include qualitative factors or expert opinions.
• Requires sufficient historical data.

Forecasting Goals for Business

Forecasting in business is not just an ordinary prediction tool.

Rather, this technique is a strategic process for analyzing historical data to make smarter and more informed decisions.

In a business context, forecasting has several important objectives, including:

1. Helps in determining goals and business plans

One of the main benefits of forecasting is that it helps businesses set realistic and measurable goals based on in-depth analysis of historical and current data.

By having accurate data, businesses can evaluate what is considered success in terms of change, growth, or improvement.

2. Assist in preparing budgets

Forecasting also helps in budgeting by providing a clear picture of trends and changes that may occur in the market.

This allows businesses to allocate resources more efficiently, such as when it comes to products, services or marketing strategies.

3. Helps in Anticipating Changes in the Market

Forecasting helps businesses to anticipate changes in the market.

By understanding emerging trends and changing consumer behavior, companies can take proactive steps to adapt their strategies and remain competitive in a dynamic marketplace.

By utilizing forecasting effectively, companies can position themselves strategically to face uncertainty and take advantage of existing opportunities.

After reading the explanation above, hopefully you understand what forecasting is and its purpose for business.

Although forecasting has many benefits, it is important to remember that it is not an exact science.

Companies must always be ready to adapt to unexpected changes and regularly evaluate and update their forecasting models.

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Fishbone diagrams are visual analysis tools that can break down complex problems into more manageable components, identify root causes, and ultimately find the right solution.

This article will discuss fishbone diagrams in depth, starting from the definition, structure, when to use them appropriately, to the detailed steps in creating them.

Definition of Fishbone Diagram

A fishbone diagram is a tool used to identify, analyze, and visualize the potential causes of a particular problem or effect.

The name "Fishbone" comes from the shape of the diagram which resembles a fish skeleton.

This diagram helps the team to systematically outline the various factors that may be causing the problem. This makes it easier to identify the root cause and the right solution.

Fishbone diagrams are widely used in manufacturing, industrial services, product development, and much more.

Fishbone diagrams have several advantages:

• Enables systematic and structured analysis.
• Encourages creative thinking and brainstorming.
• Visualize the relationship between various causes.
• Helps identify areas that require further data collection.
• Increase the team's understanding of the complexity of the problem.

Fishbone Diagram Structure

Fishbone diagrams are a very useful visual tool for analyzing the root causes of a problem.

The structure of this diagram is similar to a fish skeleton, which consists of two main parts:

1. Fish Head: The Main Problem

The head of the fish is a place to write down the main problem or consequences that are being analyzed.

Here, you can briefly explain what the problem occurred, when it occurred, and other relevant details.

For example, "Decreased sales of product X by 30% in the last 3 months."

2. Fishbones: Causal Factors

The bones of the fish that support the body and the fins of the fish represent various causal factors that contribute to the main problem.

Generally, there are six main categories used or known as the "6Ms":

a. Method: Relating to company operations, including production, marketing and distribution processes.

b. Manpower (Human Resources): Factors related to employees, such as skills, number of workers, or performance problems.

c. Materials: Covers issues related to raw materials, both in terms of quality, quantity and storage.

d. Machine (Machine): Includes problems related to equipment and machines used in the production process or operations.

e. Measurement: Concerned with aspects of measurement and calculation, such as data input errors or problems in the performance measurement system.

f. Mother Nature (Environment): External factors that are difficult to control, such as weather conditions, natural disasters, or pandemic situations.

What is the Right Time to Use Fishbone Diagrams

Fishbone diagrams are very useful in the following situations:

1. Identify the Cause of the Problem

You can use a fishbone diagram when you have a complex problem and want to know the main cause.

The reason is, fishbone diagrams can help break down problems into smaller parts so they are easier to analyze.

2. Helps with the Brainstorming Process

This diagram is helpful when you and your team are conducting a brainstorming session to find various possible causes of a problem.

These diagrams provide structure, so that ideas can be categorized neatly.

3. Prevent Stagnant Thinking

When your team tends to get stuck in the same thought patterns or the same solutions over and over again, this diagram will help.

This diagram encourages looking at the problem from different angles and considering factors that may have been overlooked.

4. Organizing Complex Information

When you have a lot of information about a problem and need to organize it in a logical and systematic way.

Fishbone diagrams help group causes into clear categories.

5. Improve product or process quality

When you want to improve product quality and need to identify the factors that influence the final result.

This diagram is often used in quality management to find and resolve the causes of defects or non-conformities.

6. Analyze Data

When you have data indicating that there is a problem, but you are not sure what is causing it.

This diagram helps relate data to potential causes.

Steps to Make a Fishbone Diagram

Creating a fishbone diagram involves several structured steps.Quoting Coursera, here is a step-by-step guide to creating an effective fishbone diagram:

Formulate a Problem Statement

The first and most crucial step is to clearly define the problem.

This problem statement will be the "fish head" in the diagram. Place this statement on the right side with an arrow pointing to it.

It is important to ensure that the entire team agrees on this problem definition, as it will be the focus of the entire analysis.

Determining the Main Cause Category

Next, identify the main cause categories that will form the main "bones" of the diagram.

These categories vary depending on the industry and problem at hand.

For example, in the manufacturing industry, general categories might include:

• Human Resources
• Equipment and Machinery
• Processes and Procedures
• Raw material
• Environmental factor
• Measurement Procedure

Conduct a brainstorming session with the team to determine the categories most relevant to your problem.

Brainstorming Causes

Once the main categories are determined, brainstorm to identify as many potential causes as possible.

Encourage the team to think broadly and deeply, without limiting the ideas that emerge.

Categorizing Causes

Once the list of causes has been collected, group them into appropriate categories on the diagram.

These causes will be the “little bones” that connect the categories to the “backbone” of the diagram.

Digging into Sub-causes

For each identified cause, dig deeper by asking effective questions such as "Why is this happening?"

This process will produce additional layers of branches or "bones" in the diagram. This helps the team to understand the root of the problem more comprehensively.

Identifying Root Causes

The final and most important step is to identify the root cause of the stated problem.

Note the causes that appear most frequently and those that appear in more than one category.

These causes are most likely the root of the problem being analyzed.

Fishbone diagrams are a very effective tool in analyzing problems and making decisions in various industries.

By understanding the structure and how it is used, you can improve your team's ability to identify the root causes of problems and develop appropriate solutions.

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Customer segment or segmentation is one of the best ways to get information about customer characteristics in a timely manner.

By segmenting customers, it will be easier for you to understand customers, including their needs which are beneficial for business.

Understanding customers or customers in business is one of the crucial things.

It could be said that by understanding customer needs, your business growth will be more precise and targeted.

So, for this reason it is necessary to understand customer segments better. Come on, see in full below!

What is Customer Segment?

Quoted from Shopify, customer segment or customer segmentation is the process of grouping customers into groups based on their general characteristics.

The grouping aims to optimize marketing efforts in each group.

HubSpot also added that this grouping is based on several general characteristics such as age, industry, gender, and others.

Customer segments are the right step to personalize marketing, including service and sales that can reach certain groups.

In the business-to-business marketing or B2B area, customer segmentation is carried out based on several factors including:

• industry;
• number of workers or employees;
• products the company has recently purchased; And
• location.

Meanwhile, for business-to-consumer marketing, companies usually group customers according to their demographics as previously explained, namely:

• age;
• gender;
• marital status; And
• location.

More targeted and accurate campaigns for each customer group will increase brand loyalty and customer satisfaction.

Customer Segment Objectives

The main goal of customer segments is to create a more accurate marketing strategy for each customer's characteristics.

However, it should be noted that customer segmentation is not just about grouping customers.

Through customer segments, you can create appropriate content and find unique challenges for each customer group.

Efforts can be made in the form of communication with customers and product development.

More specifically, the customer segment objectives are as follows:

• Create and communicate marketing that is relevant to customer needs based on customer segmentation results.
• Choose good communication media for each customer segment, for example via email, social media such as Instagram, radio advertisements, and other media according to customer group preferences.
• Identify how to improve products and services to customer groups.
• Build good relationships with customers.
• Forming a more focused business strategy to increase customer satisfaction.
• Helps increase sales of other products and services owned by the company.
• Improving customer service in the company.

Benefits of Customer Segments

According to Forbes, the two main benefits of customer segments are improving good relationships with customers and brand loyalty, as well as improving customer experience.

Both boil down to the level of customer satisfaction with the products or services offered by the company.

According to HubSpot, here are some of the benefits that customer segments can provide for your company:

1. Excel in a Competitive Market

In marketing or building good relationships with customers, the approach is often one-size-fits-all or all customers are considered the same.

This will make you the same as other brands so it doesn't make your business stand out or excel.

Customer segments are more profitable because the targets are in accordance with the grouping.

2. Targeted Paid Campaigns

Customer segments will make it easier for companies to determine in which areas and what kind of paid campaigns should be carried out.

Through effective paid campaigns, the budget used will also be efficient and not wasted because it is on target.

3. Improve the way you communicate

The easiest example is email. Of course, the Gen Z customer segment and other generations must be differentiated to make it more attractive.

Grouping customers will certainly make it easier to communicate your brand with customers.

Types of Customer Segments

Reported by Forbes, here are several types of customer segments that are usually carried out by companies:

1. Demographic Segmentation (Demographic Segmentation)

Segmentation based on demographics is a customer segment that is grouped based on the same and common characteristics. For example, gender, age, marital status, education level, occupation, income and location.

A simple example is if you have a bookstore, then segment it for people who are older. Or you can make groupings based on age.

2. Geographic Segmentation (Geographic Segmentation)

For geographic segmentation, you need to group customers based on language and location.

This location can be a neighborhood, city, province, or country. You can also add transportation mode preferences for geographic segmentation.

This geographic segmentation can be applied if you have at least two business locations in the same area.

Apart from that, you can also apply this segmentation if your business requires delivery of goods in different regions.

3. Psychographic Segmentation

Psychographic segmentation includes grouping customers based on attitudes, values ​​they believe in, lifestyle, personality, and interest in something.

Usually for this type of customer segment, the company will consider previously purchased products, survey responses, and shopping habits.

Usually this segmentation is used by companies that offer several types of services and products at once.

4. Habit Segmentation (Behavioral Segmentation)

For behavioral segmentation or segmentation based on customer habits, several things that can be taken into consideration are:

• customer product purchase history;
• response to marketing campaigns or brand campaigns;
• website activity;
• purchasing activities in e-commerce; And
• customer engagement or frequent customer interactions.

From these habits, customer characteristics are formed and segmentation can be determined.

The basis is the frequency and tendency of habits carried out by customers.

So, that's some important information about customer segments that you need to know to develop your business.

Customers or consumers are an important asset for the development of a business.

It is important for companies and brands to understand customer needs amidst increasingly tight competition in the market.

That's why it's important to learn how to build positive relationships with your customers so that customer satisfaction is also met.

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Through this program, you will be given knowledge and understanding of customer satisfaction and loyalty as well as concepts related to both.

What are you waiting for? Increase your business development and join the program now!

HRBPs are HR professionals who ensure that human resources strategies are aligned with business goals. HRBP or Human Resources Business Partner also has a crucial role in an increasingly dynamic and competitive world of work.

Rapid technological change, globalization, and shifting workforce demographics have changed the way companies operate. Businesses must be more adaptive and innovative to remain competitive and this is where HRBP plays an important role.

HRBPs also serve as change agents, helping organizations navigate major transformations such as restructuring, mergers, or cultural changes. With a deep understanding of business objectives and operational challenges, they are able to provide valuable insights and relevant solutions.

Understand more about HRBP in the following article.

Definition of Human Resources Business Partner (HRBP)

HRBP is a professional in the field of human resources who acts as a strategic partner for business management. The primary function of an HRBP is to ensure that human resource strategies and practices are aligned with business goals and needs.

This means that the HRBP is not only responsible for traditional HR administrative tasks which usually consist of payroll, recruitment and employee management. But also involved in making strategic decisions that influence the overall direction and success of the company.

HRBP objectives

The main objective of HRBP is to align human resource strategies with business objectives in order to improve overall organizational performance. Here are some specific goals of HRBP:

Supports Business Goals

HRBP works to ensure that all HR initiatives support the company's strategic goals. This means they must understand the business vision and mission in order to direct human resources to support the achievement of these goals.

Talent Development and Retention

HRBP plays a role in identifying, developing and retaining the best talent within the organization. They design training and development programs that enable employees to improve their skills and abilities. Ultimately, these efforts will increase productivity and innovation.

Improved Employee Performance

One of the main goals of HRBP is to develop an effective performance management system. This involves setting clear performance goals, providing constructive feedback, and administering performance appraisals.

Increase Employee Engagement and Satisfaction

HRBP aims to create a positive and supportive work environment, where employees feel valued and motivated. They develop programs and initiatives that increase employee engagement, such as recognition of achievements, work-life balance, and career opportunities.

Managing Organizational Change

In facing business changes, HRBP functions as a change agent. They help organizations manage the change process, ensuring that the transition goes smoothly and is well received by employees.

Ensure Compliance and Manage Risk

The HRBP is also responsible for ensuring that the company complies with all relevant employment regulations. They work to identify and manage human resources-related risks, such as legal issues or non-compliance that could harm the company.

HRBP Duties and Responsibilities

In carrying out its strategic role, HRBP has a series of broad and complex tasks and responsibilities. The following are some of the main duties and responsibilities, namely:

Maintaining a Balance Between Business Strategy and Employee Needs

HRBPs work closely with managers and business leaders to understand business needs and goals. With a deep understanding of the business, HRBP can develop and implement HR strategies that support achieving these goals.

An example can be seen when a company plans to expand its market to a new region. HRBP will play a role in planning employee recruitment and development in accordance with the expansion needs.

Managing Organizational Change

In an ever-changing business world, the ability to manage change is key. HRBP helps companies manage change, be it restructuring, mergers, acquisitions, or changes in organizational culture.

They ensure that these changes run smoothly and are accepted by employees, so that they do not disrupt productivity and morale.

Employee Development

Employee development is one of HRBP's main focuses. They are responsible for identifying training and development needs, as well as designing programs that improve employee skills and competencies.

HRBPs also work closely with managers to identify potential talent and plan career paths that allow for professional growth.

Providing Strategic HR Solutions

HRBP uses data and analytics to make informed decisions about HR strategy. They analyze employee data, such as retention rates, employee satisfaction, and productivity.

This is done to identify areas that need improvement and develop effective solutions. With this data-driven approach, HRBP can make a significant contribution to overall business performance.

Supports Performance Management

HRBP plays a role in developing and implementing an effective performance management system. They work with managers to set performance goals, provide constructive feedback, and manage the performance appraisal process.

With an effective system, companies can ensure that employees work according to expectations and contribute optimally.

Challenges Faced by HRBP

While the role of HRBPs is critical, they also face a number of complex challenges:

Aligning Business Strategy and Employee Needs

One of the main challenges of HRBPs is maintaining a balance between business interests and employee needs. They must ensure that HR strategies support business objectives without neglecting employee well-being.

This requires strong communication and negotiation skills to find mutually beneficial solutions.

Adaptation to New Technology

With rapid technological advances, HRBP must always be up-to-date with new tools and systems that can increase the efficiency and effectiveness of the HR function. This includes the use of HRIS (Human Resource Information System) software or data analysis tools and digital communication platforms.

Adaptation to this technology requires ongoing training and development.

Managing Diversity and Inclusion

In an increasingly diverse work environment, HRBPs have a responsibility to manage diversity and inclusion. They must ensure that the company creates an inclusive work environment, where every employee feels valued and supported.

This involves creating anti-discrimination policies, diversity awareness training, and other initiatives that support inclusion.

The role of HRBP is vital in ensuring alignment between human resource strategy and business goals. With duties that include employee development, performance management, and managing organizational change, HRBPs contribute significantly to a company's success.

However, they also face complex challenges. Therefore, HRBPs must have strong skills of deep business understanding and the ability to adapt.

In the world of HR itself, there are still many things that need to be understood for the continuity of the company. You can learn more about it by taking part in the HR Today: Building Employee Experience program from prasmul-eli.

With a learning duration of two days, this ISO 9001:2015 certified program has the following five discussions:

• HR Today - What & Why, People Strategy
• HRM Models
• Acquiring - DEI & EVP (Employer Branding)
• Developing - Bench Strength & Reskilling Upskilling
• Maintaining - Well Being, Mental Health, Hybrid Working, Work Life & Play

Contact prasmul-eli for more complete information via this link!

Product branding is now increasingly important in the era of ever-growing globalization and digitalization. Technological advances and the development of social media have created a more dynamic and competitive market.

Branding is not only about how your product looks, but also about how your product is perceived and remembered by consumers. In essence, branding is the art and science of creating a strong and consistent image for your product or service.

Effective branding can create emotional connections with consumers, build loyalty, and differentiate your product from competitors. Find out the definition, types, benefits and exact steps to do it in the following article.

Definition of Product Branding

Product branding is a strategic process of creating a unique identity for a product or service through various elements. Branding is not only related to visual aspects, but also includes perceptions, values ​​and emotions associated with the product.

With effective branding, a product can create a strong and memorable image in the minds of consumers. Ultimately this will contribute to the success and sustainability of the business.

Types of Product Branding

Product branding includes various types of strategies that can be used to create a unique and strong identity for a product or service. Here are some common types of product branding:

Corporate Branding

Focus on the company as a whole rather than individual products. Example: Apple, which is known not only for its iPhone or MacBook products, but also for innovation and overall quality.

Product Branding

Create a unique identity for individual products that differentiates them from other products on the market. Example: Coca-Cola with its signature soft drink products.

Personal Branding

Focuses on specific individuals, often used by celebrities, influencers and professionals to promote themselves and their work. Example: Oprah Winfrey or Elon Musk.

Co-Branding

Several brands collaborate to produce new products or services. This can help expand market reach and increase credibility. Example: Collaboration between Nike and Apple for Nike+iPod products.

Geographic Branding

Promoting products or services based on a specific geographic location, often using origin as a competitive advantage. Example: Parmigiano-Reggiano Cheese from Italy.

Retail Branding

A strategy used by retailers to create a unique identity for their stores. Example: IKEA with its unique store concept and furniture products.

Benefits of Product Branding

The importance of product branding lies in its ability to change the way consumers view and interact with your product. Here are some reasons why product branding is important:

Differentiate from Competitors

In a market filled with similar products, strong branding helps your product stand out. A unique and different identity attracts consumers' attention and gives them a reason to choose your product over competitors' products.

Building Consumer Trust

Consumers tend to have more trust in products that have consistent and professional branding. Good branding creates a perception of quality and reliability which ultimately builds consumer loyalty.

Facilitate product introduction

Effective branding makes it easier for consumers to recognize your product among many other products. Visual elements such as logos, colors, and packaging, as well as auditory elements such as slogans and jingles, all contribute to building product recognition.

Facilitate product introduction

Products with strong branding can often be sold at higher prices than products without clear branding. Consumers are willing to pay more for products they know and trust.

Steps in Building Effective Branding

Building effective branding is key to ensuring your product is not only known, but also remembered and loved by consumers. The following are some important steps that need to be followed in building effective branding:

Determining the Target Market

The first step in building branding is understanding who your target market is. Knowing your consumer demographics, psychographics and behavior will help create the right message and identity.

Building Brand Identity

Brand identity includes the brand name, logo, colors, typography and other visual elements. Make sure these elements reflect your brand's character and values. Consistency in the use of visual elements is critical to building recognition and trust.

Creating a Brand Message

Brand messaging is how you communicate with consumers. It includes taglines, slogans, and narratives that tell your brand story. Messages must be clear, consistent, and relevant to your target market.

Implementing Marketing Strategy

In the digital era, a strong online presence is essential. A professional website, active social media profiles, and a good content strategy will help you reach and interact with consumers more effectively.

Supporting Innovation

A good understanding of user needs and expectations can drive innovation and better product development in the future.

Product branding is a crucial element in modern business strategy. By building a strong identity and creating consumer trust, effective branding can bring long-term success to your product.

By following these principles, you can ensure your products are not only known, but also loved by consumers.

Product branding is only one of many management strategies that companies can carry out. Understand more about the various elements of management strategy through the Strategic Brand Management program from prasmul-eli.

With a study duration of 2 days, this ISO 9001:2015 certified program has the following five discussions:

• Product and Brand Management
• Brand Elements
• Brand Identity
• Brand Loyalty
• Brand Extensions

Contact prasmul-eli for more complete information via this link!

Human resource management or HRM (Human Resources Management) is something that is important for business owners to know.

The reason is, a good company has three resources, namely; physical resources, financial resources, and human resources. Acting as a driving force, human resources must be managed well for the sustainability of the company.

Moreover, a successful company depends on the quality of its human resources. This makes good HRM necessary to achieve company goals.

Understand more about what is meant by HRM, its functions and benefits for your company in the following review.

Understanding HRM

HRM or Human Resources Management is the activity of organizing and managing employees in a company to implement the vision, mission and business goals.

HRM is reliable enough to maintain the smoothness and efficiency of business, both for small and large scale companies.

Activities include recruitment, training, compensation, retention and employee motivation.

HRM Function in the Company

The following is a more complete explanation of the HRM function in the company, including:

Recruitment and selection

A company's HRM holds responsibility for planning, advertising, selecting and recruiting employees as needed.

This process includes interviews, assessments, and selecting the most suitable employees for the available positions.

Training and development

The second HRM function is as a designer and implementer of training programs.

The training provided must be able to improve employee skills, knowledge and competence.

For example, HRM plans training that involves employees from various departments to learn and master the latest software.

The program includes hands-on training sessions, case studies, and real projects that require employees to apply their new knowledge in the context of everyday work.

This series of training will increase employee productivity which will ultimately result in the company's progress.

Performance manager

Performance management is an important HRM task that involves assessing employee performance. HRM sets goals, provides feedback, evaluates performance, and designs improvement plans.

For example, HRM can help in setting measurable performance goals and providing constructive feedback to employees.

By conducting regular evaluations, HRM can identify performance strengths and weaknesses, as well as design training programs to improve employee performance.

Communication intermediary

The next function of HRM in the company is as a communication intermediary between leaders and employees and vice versa.

Information such as policy announcements and company developments, as well as input on a problem, is usually communicated first to HRM.

For example, a company faces a policy change regarding flexible working hours. Before the official announcement to all employees, the company leadership conveys the information first to HRM.

HRM is then responsible for communicating the policy to all employees.

HRM not only conveys information, but also opens communication channels to receive input and questions from employees.

This creates transparency in the company's internal communications and helps manage change more effectively.

Employee welfare manager

HRM is also responsible for ensuring the safety, comfort of the work environment and security standards for employees.

Apart from that, HRM is tasked with handling employee benefits such as health insurance, leave and other welfare programs.

Employee position planning

HRM workforce planning is said to be successful if the company can maintain operational continuity well, including when someone leaves.

For example, when a senior level employee chooses to leave, the company can quickly find a replacement so that productivity is maintained.

Likewise, when a staff member is to be appointed senior, he or she will receive provisions first so that they are better prepared for their appointment.

Conflict management

HRM is a key role in handling conflict among team members or between the team and leadership. They can mediate, resolve disputes, and find solutions that support a harmonious work environment.

By mediating, they facilitate constructive discussions and reach an agreement that satisfies both parties. These actions help maintain a positive work atmosphere and support team productivity.

Benefits of HRM for Companies

If the HRM functions above run well, the company can obtain several benefits:

• Play a role in achieving departmental or company targets as a whole which has an impact on increasing profits.
• Appropriate placement of employees according to competency and company needs to maximize work results.
• Maximum time management resulting in optimal productivity.
• Facilitates the delegation process from leadership, so that employees can focus on carrying out their respective tasks.
• Providing employees with a series of training to improve their abilities and skills in preparation for their next career level.

That's the information you need to know about what HRM is, its functions and benefits for your company. A good HRM system is one that is able to produce a solid, productive and profitable team for the company.

However, an HRM system that was successful 5-10 years ago is not necessarily still relevant today. An HR manager must keep up with various changes ranging from the way business is managed, technology, to the expectations of today's job seekers.

If you want to explore HR that is relevant today, follow the short program HR Today: Building Employee Excellence from Prasmul Eli.

In the two-day program, the scope of learning includes:

• HR Today - What & Why, People Strategy
• HRM Models
• Acquiring - DEI & EVP (Employer Branding)
• Developing - Bench Strength & Reskilling Upskilling
• Guest Speakers
• Rewarding - total reward package
• Maintaining - Well Being, Mental Health, Hybrid Working, Work Life & Play
• Wrap Up

Register yourself via the following link to take this class!

User Experience (UX) is a crucial element in the success of products and services in the digital era. In various applications, UX plays an important role in determining how users interact when using a product.

Creating a positive experience is not just about providing an attractive appearance, but also involves a deep understanding of user needs and behavior. Good UX can increase user loyalty, reduce churn rates, and even accelerate product adoption in competitive markets.

This article will thoroughly examine various aspects of UX, from understanding to its practical application in the business world.

Definition of User Experience (UX)

User Experience (UX) is a concept that covers all aspects of a user's interaction with a company, service, and product. The goal is to create a satisfying and enjoyable experience for users, and meet their needs and expectations.

UX focuses not only on visual design, but also on the entire process that users experience. This process starts from searching for information to using the product or service.

User Experience (UX) Function

The function of user experience in product development is vital to achieving success in a competitive market. By understanding the various key functions of UX, companies can create optimal experiences and in turn increase retention and loyalty.

Here are some of the main functions of UX:

Increase User Satisfaction

The main function of user experience is to increase user satisfaction by making their interaction with the product easier, efficient and enjoyable. Good UX ensures that users can quickly find what they are looking for and complete tasks without difficulty.

Increase User Retention and Loyalty

Positive user experience drives loyalty. When users feel comfortable and satisfied with a product, they tend to continue using it and even recommend it to others.

Increase Efficiency and Productivity

Good UX can increase user efficiency and productivity by providing an intuitive and functional interface. Users can complete tasks faster with fewer errors, which means they can focus on more important things.

Reduce Customer Support Costs

Products with poor user experience tend to cause frustration and confusion for users, which ultimately increases the need for customer support. By investing in improving UX, companies can reduce the number of support calls and requests, which in turn can lower operational costs.

Increase Conversion Rates

In the context of e-commerce or sales-oriented applications, good UX can increase conversion rates. By designing a clear and simple user path from start to finish, users can make purchases more quickly.

User Experience (UX) Components

Each UX component plays an important role in creating a holistic and satisfying experience for users. The following are the main components of user experience, including:

1. Usability: Provides easy navigation, an intuitive interface, and ease in achieving user goals.
2. Interaction Design: Ensure interactions between users and products are smooth, responsive, and efficient.
3. Visual Design: Attract users' attention through aesthetic and functional visual elements.
4. Information Structure: Organizing content and information so that it is easy for users to find and understand.
5. Accessibility: Ensure that the product can be used by everyone, including those with disabilities.
6. User Satisfaction: Measures the extent to which users are satisfied with the experience they get.

The Importance of User Experience (UX) for Business

Implementing the right UX  can build stronger relationships with customers, increase loyalty and ultimately drive business growth.

The importance of user experience in business can be seen from the various benefits it offers, some of which are:

Increase User Satisfaction

The first benefit of user experience is that it can increase customer satisfaction. A good experience makes users feel satisfied and happy using the product or service. This can increase user loyalty and retention.

Reducing Costs

Products designed with good UX can reduce customer support costs because users experience problems or confusion less frequently. This reduces the number of calls and assistance, which in turn reduces the workload of customer support teams and lowers operational costs.

Increase Conversions

Websites or apps that have good UX tend to have higher conversion rates. This is because users feel comfortable and easy in achieving their goals, such as making purchases.

Building Brand Reputation

Positive experiences can improve brand image and reputation. Users who are satisfied will usually recommend the product or service to others.

Supporting Innovation

A good understanding of user needs and expectations can drive innovation and better product development in the future.

User experience is a very important aspect in product and service development. By focusing on UX, companies can increase user satisfaction, reduce costs, increase conversions, and build a strong brand reputation.

UX is just one aspect that you need to master in the world of Digital Marketing. Optimization still needs to be done in the realm of search engines, websites and social media.

Understand more about the application of digital marketing to companies through the Digital Marketing Fundamentals program from prasmul-eli.

With a study duration of 2 days, this ISO 9001:2015 certified program has the following seven discussions:

• Introduction to Digital Marketing Strategy
• Customer Personas
• Social Media Marketing
• Digital Paid Advertising
• Digital Free Advertising
• Customer Journey & Online Sales Funnel
• Digital Marketing Strategy & Workshop

Contact prasmul-eli for more complete information via this link!

Kanban is a project management methodology originating from Japan. This method is very popular in various industries, especially in software development.

This methodology was originally developed by Toyota in the 1940s as a system to increase efficiency in car production. However, over time, Kanban principles have been adapted for various other work contexts.

Understand more about what kanban is, its principles, how it works and its advantages and disadvantages by reading this article to the end.

Definition of Kanban

Kanban is a project management methodology that prioritizes visualization of workflows to increase team efficiency and effectiveness. The word "Kanban" means "visual board" or "signal card" in Japanese, referring to a board used to display work status.

Basic Principles of Kanban

Kanban principles help teams manage their work in a more structured and transparent manner, so as to provide more optimal results. This methodology focuses on quick turnaround and optimization of work steps to reduce waste and increase productivity.

Here are some Kanban principles that help teams work more efficiently and transparently:

Job Visualization

Kanban requires teams to use visual boards to show their workflow. This board usually consists of several columns representing various stages in the process, such as "To Do," "In Progress," and "Done."

With this visualization, the team can monitor overall project progress and detect obstacles or bottlenecks that may occur.

Limiting Work in Progress (WIP Limits)

One of the main principles of Kanban is to limit the amount of work in progress at each stage. This helps prevent excessive multitasking and ensures that work gets done faster.

WIP limits encourage teams to focus on completing tasks before starting new ones, thereby improving work flow.

Managing Work Flow

Kanban encourages continuous and efficient work flow management. By continuously monitoring the workflow and making adjustments as necessary, the team can ensure that the project runs smoothly and efficiently.

This monitoring also helps in identifying and eliminating obstacles that may arise.

Improve Collaboration and Communication

By visualizing work and enforcing WIP limits, Kanban encourages better communication and collaboration between team members. Everyone can see what is being done and what is prioritized, minimizing confusion and increasing transparency.

Implement Continuous Improvement

Kanban encourages a culture of continuous improvement. The team regularly evaluates their work processes and looks for ways to improve efficiency and effectiveness. Retrospectives or periodic reviews are often conducted to identify areas that need improvement.

How Kanban Works

How Kanban works starts with creating a Kanban board that visualizes the team's workflow. This board can be a physical board with cards or use digital tools such as Trello, Jira, or Azure DevOps. The columns on the Kanban board are tailored to specific stages of the team's work process.

Once the Kanban board is created, the team determines WIP limits for each column. These limits are usually based on team capacity and complexity of work.

The team then started using Kanban boards to track and manage their work. This management includes the activity of moving cards from one column to the next according to work progress.

Advantages of Kanban

Using Kanban in project management offers various advantages that can increase team efficiency and collaboration, including:

Increased Efficiency

Teams focus on completing tasks before starting new ones, reducing excessive multitasking.

Better Transparency

The next advantage of Kanban is that being able to visualize work on a Kanban board provides clear visibility of the project status. This makes it possible to monitor developments in real-time.

Flexibility

Kanban can be easily adapted to different types of projects and teams, there is no one-size-fits-all approach.

Quality Improvement

This approach reduces the risk of errors that often occur due to excessive multitasking and unnecessary distractions. When teams focus on one task, they tend to be more thorough and careful, resulting in better output.

Better Collaboration

Visualizing work and WIP boundaries encourages better communication and collaboration between team members.

Disadvantages of Kanban

Even though it seems perfect, like every other methodology, Kanban also has some drawbacks that need to be taken into account to ensure successful implementation.

Resistance to Change

Implementation of new methodologies often faces resistance from the team.

Maintaining WIP Limits

Setting and adhering to WIP limits can be challenging in a dynamic and rapidly changing environment.

Continuous Monitoring

Kanban requires continuous monitoring and adjustment, requiring commitment and discipline from the entire team.

Reliance on Visualization

Kanban relies heavily on visualization of work which can be problematic if not maintained properly.

Difficulties in Handling Large Projects

Although flexible, Kanban can be less effective for very large or complex projects without additional management methodology.

Kanban is an effective and flexible project management methodology and can help teams improve the efficiency, transparency and quality of their work. Kanban allows teams to better manage their workflow and achieve more optimal results.

Apart from understanding Kanban, managers and supervisors must be prepared to face various uncertain business and industrial conditions. Follow The Real Project Management program from prasmul-eli.

With a study duration of 2 days, this program has the following four learning methods:

• Mini interactive lectures
• Practice and simulation
• group discussion
• Gamification

What are you waiting for, contact prasmul-eli for more complete information via this link!

You must have heard the term customer often. However, what exactly is a customer and what is its function for business development?

Customers are always the main concern of every company. The reason is, without customers of course there will be no income. Then, without income, the company cannot survive.

Therefore, understanding customers, from their definition to their characteristics, is very important for business success. Customers are not just buyers of products or services; they are part of the business ecosystem and play an important role in the company.

A deep understanding of customer types can help companies develop more effective and efficient marketing strategies.

In this article, you will find out various aspects about customers, starting from definitions, characteristics, to types and functions in business.

Definition of Customer

Customers are individuals or organizations who buy goods or services from a company. In business, they are the most important element because they are the main source of income for the company.

The success of businesses depends largely on their ability to attract, retain and satisfy customers. Without customers, a company cannot operate and generate profits.

Customer Characteristics

After understanding what a customer is, you also need to know what the characteristics of the customer are.

Companies need to deeply understand who their customers are and what they want. This understanding includes not only knowledge of their needs and expectations, but also the unique characteristics that shape their purchasing decisions.

Here are some characteristics of customers:

Needs and Desires

Customers have certain needs and desires that they want to fulfill. Companies must be able to identify and understand these needs and desires to be able to offer appropriate products or services.

Hope

Customers have certain expectations for the products or services they buy. These expectations include quality, price and service.

If these expectations are not met, customers may look for other alternatives.

Experience

When customers interact with a product or service, it greatly influences their satisfaction. Positive experiences can increase customer loyalty, while negative experiences can cause them to switch to competitors.

Loyalty

Customer loyalty is their level of loyalty to a particular company or brand. Loyal customers tend to make repeat purchases and recommend products or services to others.

Communication

Customers often communicate with companies through various channels, such as email, telephone, social media, and face to face. Effective and responsive communication can increase customer satisfaction.

Types of Customers

Understanding different types of customers is key to designing effective business strategies. Each customer has different behaviors, needs, and preferences, which influence how they interact with a company.

The following are several types of customers commonly found in business:

New Customer

Customers who are buying products or services from the company for the first time. The company must give a good impression to ensure that these customers return to make purchases.

Loyal Customer

Customers who consistently make purchases from the company over a long period of time. They are often loyal advocates of the brand and contribute significantly to the company's revenue.

Potential Customers

Individuals or organizations who have the possibility of becoming customers in the future. Companies need to make marketing and sales efforts to attract their attention.

Passive Customer

Customers who rarely make purchases or only buy in small quantities. Even though their contribution to revenue may be small, they are still important because they can turn into loyal customers.

Former Customer

Customers who previously purchased a product or service but no longer do so. Knowing the reasons behind their decision to stop purchasing can help companies improve their services and products.

Customer Function in Business

Every business that wants to develop and survive in the long term must understand the importance of the role of customers.

Here are some customer functions for business that you need to understand:

Source of Income

Customers are the main source of company income. Without customers buying products or services, companies cannot make money and remain operational.

Feedback

Customers provide valuable feedback regarding products or services. This feedback can help companies understand their strengths and weaknesses, as well as improve and develop new products or services.

Word-of-Mouth Marketing

Satisfied customers tend to recommend products or services to others. Word of mouth marketing is one of the most effective forms of marketing and can increase a company's reputation and market share.

Product Innovation

By understanding customer needs and desires, companies can develop new products that are more innovative and in line with market demand.

Loyalty

Satisfied and loyal customers tend to make repeat purchases and form a stable customer base. Customer loyalty can also help companies survive in difficult market conditions.

After reading the description above, of course you already understand what a customer is and its benefits for business, right?

Customers are a crucial element in the business world. In a competitive business environment, the ability to properly meet customer needs is key to achieving long-term success.

Companies must always focus on customer experience, loyalty and innovation to remain relevant and competitive in the market. For this reason, a deep understanding of customer management is mandatory.

Learn more about how to maintain satisfaction and good relationships with customers through the Customer Satisfaction & Relationship program from prasmul-eli.

With a learning duration of two days, this ISO 9001:2015 certified program has the following 10 discussions:

• Customer Satisfaction
• Customer Value
• Service System
• Service profit chain
• 8Ps for customer satisfaction
• Customer Loyalty
• Customer Loyalty Ladder
• Customer Relationship Management
• Share of Wallet
• Cross Sell and Up Sell

Contact prasmul-eli for more complete information via this link!

Cold calling is a direct marketing technique that has long been used by many companies. Even though there are many new, more modern marketing methods nowadays, cold calling is still considered effective in some situations.

This technique has been the basis of many sales strategies for decades, even before the rapid development of communications technology. Although many people consider cold calling to be an inefficient or annoying method, the facts on the ground are not.

When done right, cold calling can be a highly effective way to reach new prospects and uncover previously unknown business opportunities.

This article will discuss what cold calling is, the benefits, challenges faced, and strategies to increase its success.

Definition of Cold Calling

Cold calling is a marketing method in which a salesperson or company representative contacts individuals or businesses with whom they have never interacted before. The goal is to introduce a product or service, obtain more information, or make a promise for a future sale.

As technology develops, cold calling has evolved with more sophisticated tools and techniques to increase its effectiveness.

For example, using Customer Relationship Management (CRM) software to help companies manage and track interactions with prospects more efficiently.

Benefits of Cold Calling

With the right approach, cold calling can open the door to new opportunities and help businesses achieve their sales targets. It is important for us to understand how this method can benefit company profits.

Here are some benefits of cold calling:

Increase Product or Service Awareness

Cold calling allows companies to directly introduce their products or services to potential customers who may not yet know they exist. This is especially useful for new businesses or products that need to gain attention in an already crowded market.

Identifying Potential Customers

By cold calling, companies can identify and screen potential customers who are truly interested in their products or services. This helps sales teams focus on leads that have a higher chance of conversion.

Collecting Immediate Feedback

Cold calling provides an opportunity to get direct feedback from potential customers. This could be a response to the product or service being offered, as well as a deeper understanding of their needs and wants.

Building Relationships

Although cold calling is often seen as annoying, if done well, it can be the first step to building strong relationships with customers. A personal and professional approach can help create trust and credibility.

Cold Calling Challenge

Many sales professionals are frustrated by high rejection rates and the difficulty of building positive relationships with potential customers. Here are some of the challenges of cold calling:

High Rejection

One of the biggest challenges in cold calling is the high rejection rate. Many people are annoyed by unexpected calls and tend to reject offers without listening carefully.

Regulation and Compliance

In many countries, there are strict regulations regarding cold calling, such as a "Do Not Call" list that must be adhered to. Violations of these regulations may result in fines or legal action.

Difficulty Getting Contact Numbers

Collecting valid and relevant contact data is also a challenge. Without accurate data, cold calling efforts can be futile and waste time and resources.

Negative Stigma

Cold calling is often associated with aggressive sales techniques and is frowned upon, creating a negative stigma. This can be a psychological barrier for cold calling sales representatives.

Strategies to Increase Cold Calling Success

A good plan not only includes preparation before the call, but also involves effective communication techniques during the call. The following are some strategies that can help increase the success rate in cold calling.

Research and Preparation

Before making a call, it is important to do research on the potential customer. Understand their background, business needs, and potential problems that your product or service can solve.

This information helps create more relevant and interesting conversations.

Flexible Scripts

Using a rigid script can make conversations sound unnatural and mechanical. Instead, use the script as a basic guide but remain flexible to adapt to the prospect's response.

This helps create more personalized and dynamic interactions.

Personalized Approach

Mention the potential customer's name and try to build a relationship from the start of the conversation. Show that you understand their needs and problems, and explain how your product or service can help.

Respond to Rejection Professionally

Rejection is part of the cold calling process. Instead of getting discouraged, take the rejection professionally and ask if there's a better time to talk in the future.

Don't forget to thank them for their time.

Training and development

Regular training and skill development are essential to increasing cold calling success. Train sales representatives in effective communication techniques, how to handle objections, and sales strategies.

Analysis and Adjustment

Monitor and analyze cold calling results regularly. Identify successful patterns and areas for improvement. Use this data to adjust your strategy and approach to be more effective.

Cold calling may seem like an old-fashioned marketing method in the digital age, but it still has its place in an effective sales strategy. In an ever-changing business world, cold calling skills remain valuable and relevant for every sales professional.

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• Key Account Management and Key Accounts defined.
• Relational development of KAM.
• Key accounts classification and portfolio management
• Key account managers: Hunters versus Farmers.
• Customer's Decision Making Units
• Key account planning.

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