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Business Communication as the Key to Work Success
25 June 2024

As in everyday life, business communication is something that needs to be understood in order to realize company goals. The reason is so that we can be more adaptive to the work environment and can make our work successful.

Clear and effective business communication is very crucial for employees, managers and business leaders in carrying out their duties and fulfilling their responsibilities. Without appropriate processes and tools, businesses can face a variety of serious problems, from dissatisfied employees, disappointed customers, to a gradual decline in profits.

So what does business communication look like? Check out this article to understand the differences in business communication that make you look more professional at work!

Understanding Business Communication

Business communication is a process of sending and receiving information in a business environment. According to Rosenblatt, business communication is the act of sharing information, ideas, concepts and instructions conveyed both personally and to the public.

In business communication, the sender of the message is obliged to ensure that the message conveyed can be received or understood by the person he is speaking to. Carrying out business communication has several benefits, one of which is increasing customer satisfaction.

When carrying out business communications at work, engagement with customers is one of the goals.

Business Communication Objectives

The application of business communication itself has the aim of increasing collaboration within the company or with customers. Through effective communication in business, of course there will be collaboration and reciprocal relationships that will benefit both parties.

In addition, business communication aims to increase employee trust in the company or customers in product marketing organizers.

In the business world, business communication is one of the important things to implement. The reason is, without effective communication there will be misunderstandings whose impact could be detrimental to the business.

Types of Business Communication

Communication carried out in a business environment also has various types in its application. The following are the types of business communication that you need to know:

Horizontal Communication

This communication is a type of communication in business that is carried out with people who have positions in the company. This type of communication usually occurs between department heads in a company or two employees who work in the same department.

Another term refers to horizontal communication in business as peer communication. Horizontal communication can help with coordination within a team or when further discussions are needed for plans within a team or department.

Vertical Communication

Vertical communication is a type of communication in business that occurs between employees with different level positions. For example, vertical communication is the exchange of information between team members and the team head.

In this communication, team members need to report work or have further discussions regarding the project so that communication occurs. Of course, communication between these two individuals also needs to be regulated by appropriate etiquette.

Diagonal Communications

Diagonal communication is a type of communication that occurs within a company between people at different but related levels. The type of diagonal communication in a company is open communication and facilitates collaboration with different teams.

Practical Business Communication Techniques 

To achieve effective communication goals, at work each individual must master business communication techniques. The following are business communication techniques that you can apply!

Active Listening

When communicating at work, make sure you actively listen. In business communication, it is very important to receive information correctly so as to achieve mutual understanding.

When you can listen actively, business communication will be more effective because you can understand the other person's intentions appropriately. Apart from that, this method allows someone to build close relationships with other members who work at the same company.

Using Appropriate Language

Communication with the right use of language will produce high effectiveness. It should be understood that choosing the type of business communication also determines the language used.

Of course, communicating with teammates with equal positions will be different from talking with your boss. So, make sure to understand who you are talking to to determine the appropriate language style.

However, in general, formal and clear language is still the choice for conveying information in business.

Maintain Eye Contact

Of all the things in communication techniques, there are several small things that can also make you more successful in carrying out business communications. A small thing but it can also lead to more successful business communications.

Maintaining eye contact while talking can build good working relationships in business. Apart from eye contact, gesture is also an important thing.

Not the main goal but can help if this technique is learned well.

Maintaining Emotions

In a meeting, there are often differences of understanding or differences of opinion which lead to tension. In business communication, one of the important techniques to learn is not to involve emotions when communicating.

Again, the goal is to provide success in business, so we must be able to control our emotions and think openly.

There are times when business communications involve emotions to build better relationships. However, make sure you can control your emotions so that they don't become something that has a negative impact on carrying out business communications.

Want to sharpen your business communications?

You can try taking one of the short programs at prasmul-eli. Currently, prasmul-eli has provided various short classes to hone skills that are useful for your job or business.

Apart from that, there are also facilitators who are experienced in their fields to help you learn and gain insights that can be applied.


Curious? Contact Prasmul-Eli immediately for further information by clicking this link!

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Understanding ERP that makes it easier to manage business data
24 June 2024

ERP or Enterprise Resource Planning is a system designed to manage all aspects of an organization's business in one integrated platform. With this, companies can automate various business functions such as finance, human resources, production, supply chain, services, and others.

The ERP concept developed from Material Requirements Planning (MRP) which first appeared in the 1960s. MRP focuses on production planning and control. As information technology developed, in the early 1990s, MRP evolved into ERP, covering not only manufacturing functions but also entire business processes.

This system aims to increase efficiency, reduce costs, and provide better insights through integrated, real-time data. Want to understand more about ERP and its use in business? Read this article until the end!

What is ERP?

ERP or Enterprise Resource Planning is a data collection and organization system carried out by integrated software. An ERP system is a solution to make it easier for businesses to manage daily data.

The data that can be managed is quite diverse, such as; accounting, manufacturing, marketing and HR data. With this system, data can be synchronized and move automatically, making it easier for managers to monitor the business as a whole.

ERP applications facilitate easier communication and exchange of information between departments across the company. This system collects information about the activities of various divisions, so that the information is available to other departments and can be used productively.

How ERP Works

After understanding the meaning, of course it will be very interesting to know how it works. In terms of process, ERP will help collect all data in the organization which is then stored in one central database.

After that, the data will be analyzed by the system to optimize business processes in an organization or company. The goal is to automate tasks, improve team collaboration, and better supervision and control.

Please note that ERP is a new digital tool that currently aims to be a data management solution. However, it is possible that the system will develop and provide various other solutions for running a business in terms of data management.

Types of ERP

With a dynamic system, of course ERP also has several types that can be used. The types of implementation are also quite varied according to the needs of the organization or company that wants to use it.

Here are the types of ERP systems based on their implementation:

Cloud Based

For those who want real-time data, using cloud-based ERP could be an option. This implementation system is available through cloud hosting services.

This cloud-based system is generally suitable for large-scale organizations or companies. This is because the larger the organization, the greater the need for real-time data analysis for business optimization.

On Premise

For this type, the system is used in a device directly in an organization or company. On-premise ERP systems are designed for all sizes of business, but are usually used by small and medium-sized organizations or companies.

Open Source

Just like other open source software, this ERP system allows companies to examine, modify and change the source code. The benefit of using open source is that it can make applications more suited to the organization or company.

Hybrid

This type of system combines two implementations, namely cloud and on premise. The use of this system allows it to be modified according to data needs and how much data is managed.

Benefits of ERP for Business

Various types of ERP system implementation open our eyes to the fact that currently there are systems that are easy and customizable. However, what benefits does using this system actually provide for business development in an organization or company?

The following are some of the benefits of an ERP system for business purposes:

Data analysis

In making a decision, of course there must be a valid data source to support it. This is where the function of the ERP system can help provide valid data both in quantity and quality.

Apart from that, with this system, daily data analysis can be carried out to help the production system quickly and precisely.

Workflow Effectiveness

Before ERP systems, you might update data by calling other departments by telephone. With this system, data updates can be done quickly and save communication time.

In other words, this system is able to provide effective benefits in workflow and communication efficiency.

Work Scheduling

Another benefit of having an ERP system in a company is in work scheduling. Companies can arrange employee work shifts, inventory delivery times, and manage time for maintenance within the company, both facilities and infrastructure.

An ERP system is a solution to make communication and data management more efficient. The system will definitely develop more sophisticated and provide other benefits for running an organization or company effectively.

Make sure your organization or company uses the type of ERP that suits your needs and is able to help with daily business activities.

Apart from ERP systems, there are also other ways to manage organizations or companies, namely understanding strategic management. Currently Prasmul-Eli has a short strategic management program that you can follow.

The aim of this short program is to inspire and develop your perspective in business. With the latest curriculum, you can choose various business classes according to your needs. This short program also presents facilitators who are experienced in their fields.


What are you waiting for, immediately register yourself to take part in a short training from prasmul-eli! Click this link for registration information and class options.

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Get to know CTA, an effective strategy to increase conversions
21 June 2024

In the world of digital marketing, CTAs are an effective strategy for increasing conversions. CTA or call-to-action itself is a mandatory element for every website in the world of digital marketing.

One of the functions of CTA itself is to attract consumers to a goal that has been set in the digital marketing strategy.

Is CTA only used on websites or can it be used in other media? Read this article to find out more about CTAs and also know how to create them effectively for your business!

What are CTAs?

As mentioned, CTA is an abbreviation of call-to-action. CTA is a term used in the marketing world to refer to the steps that marketers hope their prospects will take.

Regarding goals and needs, usually CTA can also be called a lure to direct consumers or users to a destination. These destinations can be various, such as sales pages, coupon pages, product information pages, and many more.

Functions of Using CTA

Creating various CTAs in various media certainly has its own goals and functions. Before deciding to look for the right CTA, first understand its function. Here are some CTA functions that can be taken into consideration when creating them:

Reducing the Bounce Rate Number

For those of you who have a business and use a website, CTA is an important element. Imagine when your potential customers are confused about buying a product but there is no purchase button, they will choose to leave the website.

The departure of consumers or users from the website results in a high bounce rate. The use of clear and effective CTAs can overcome this because the audience can follow clear instructions and spend longer on the page.

Simplifying the User or Buyer Journey

Another CTA function is to simplify the user or buyer journey so that it is shorter. Effective use of CTA will make users or consumers return to the page where you promote your business or product.

Increase Conversions

When you use the right CTA, more and more target audiences will definitely come to the page or click on a particular link. As a result, more leads, customers or prospects can be obtained.

Adding Content Value

If you are currently still confused about determining which CTA is relevant to the content, it could be that you don't understand the purpose of the content being created. With a CTA, it makes it easier for you to understand what kind of content needs to be created to promote your business on digital media.

In other words, using CTA functions to add value to the content you create.

Types of CTAs

Not only does it have many functions, there are also various types of CTA. The use of CTA can be adjusted to the promotional objectives that can be determined as a marketer. Several types of CTA below can help you as a marketer to have effective promotional content!

Form filling

After entering the landing page, visitors to your website or content will usually be given a form to fill in their personal data. The part of the button that leads to this form is called the CTA.

The sentence used for this CTA button also needs to be found to be the most effective, the aim is of course to attract the audience to provide personal data or leads.

Lead Generation

CTA is also a useful element for generating leads from content on a website or landing page. Leads itself is a term for a group of people or companies who are interested in the product or type of business you offer.

Make sure you place the CTA in a visible place on the website so that it can get the desired leads.

Button "Read More"

Not only in the form of leads, CTA can also be in the form of a button that directs you to a page to contain more information. Usually the "read more" button as a CTA is used for informative websites.

The goal is to direct the audience to other articles to clarify the information that has been provided.

Product and Service Offerings

The purpose of creating content on digital media is to promote a business or product, right? It turns out, with a CTA on a marketing website page it can be directed to a sales page.

The condition is that the use of the CTA sentence must be clear and placed in the correct part visible to the user or consumer.

How to Create Effective CTAs

As we know, convincing the audience to do what we want on the website is not easy but not impossible. Here are tips for creating CTAs that can help promote your business or product!

Choose Short Words or Phrases

Use to-the-point CTAs on your website pages to attract users to take further action. Choosing short words or phrases not only attracts users but is also aesthetically better when combined with the design.

The technique of selecting words or phrases for CTAs aims to increase the fear of missing out (FOMO). As a result, users will click on CTA more quickly that directs them to the page the marketer wants.

Must be striking and unique

If you want to have a CTA that is striking and easy to see, the determining component is color. Choosing a striking color will help users understand what action is expected from the page they are visiting.

The form of the CTA is also quite decisive. Some websites use button-shaped CTAs to make them clearly visible, while others use hyperlinks with striking colors.

You can choose the form of CTA according to your business goals and preferences according to your tastes.

Writing must be clear on various devices

A research says smartphone users account for quite a lot of total internet users. So, in making CTAs you need to prioritize shapes that are visible on smartphones more.

Make sure the CTA used can be seen and displayed on the smartphone screen. Not only display, make sure the resolution is also sharp to support aesthetics.

Using CTAs in digital promotional media will really help you get or divert users to do the desired thing. Make sure the CTA used is in line with business goals and can accommodate those goals.

Apart from using CTAs in digital promotional media, other developments can also help you make the business you run successful. Currently, Prasmul-Eli is opening various short programs to help you sharpen skills that are useful for your business.


Click this link for more information!

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Get to know Risk Assessment which helps companies gain profits
20 June 2024

Risk assessment is an integral part of risk management which involves identifying potential hazards, assessing the probability and impact of risks. This also includes implementing measures to reduce or control risks.

In business, carrying out a risk assessment is one of the strategic efforts that needs to be carried out. Because to gain as much profit as possible, of course there is also a risk of possible losses.

Therefore, risk assessment exists to analyze the risks that a company can bear when making efforts to achieve profits.

Risk assessment is not only carried out for a department. Strategically, employees will often carry out their own risk assessments to understand the potential benefits of a job and its feasibility.

Generally, risk assessments are carried out by the HR team or even have a special team to do it.

Usually companies that have a team to carry out separate risk assessments are large-scale companies.

Does the company you work for have a team that does this? So, is this risk assessment something that must be done? Read this article further so you can understand the concept and can make a plan to apply it in today's workplace!

What is Risk Assessment?

Risk assessment is the process of identifying, analyzing and mapping potential dangers that will be faced by an organization or company. In doing business, all actions will certainly have an impact.

Even things that seem to increase profits can still cause losses in business.

Risk assessment is carried out as an action to prevent the danger of loss within a company when running a business. Preparation of more strategic scenarios needs to be well structured and prepared.

The main goal is, if the worst thing happens, namely a loss, every department involved will know what needs to be done to help the company.

The implementation of risk assessment can be done physically or non-physically. Physical includes; evaluation routes, gathering points, handling of work injuries or accidents.

Meanwhile, non-physical includes; digitally recorded data and also research carried out by the company.

Process of Conducting Risk Assessment

You must be wondering how to carry out a risk assessment after knowing what it means. Will the process of carrying out a risk assessment take up your time when there are other tasks that need to be done?

This is the process carried out in carrying out a risk assessment!

Hazard Identification

The first step taken in a risk assessment is identifying the dangers faced by employees and the company. These things include;

  • Natural disasters (floods, earthquakes, hurricanes and many more)
  • Biological hazards (diseases in pandemics, food-borne diseases)
  • Incidents at work
  • Technological danger
  • Employee demo
  • Interruptions in the supply chain
  • Mental health hazards

Look at the place where you work, identify the dangers that are likely to befall the company. Include all aspects of employment including remote workers and non-routine matters such as maintenance and repairs.

Determining Who Will Be Affected

When analyzing an organization or company, think about how your employees will be affected if a danger occurs in the organization.

One of the goals of risk assessment is to obtain minimal losses. So that in the process we can find out who will be harmed and how they will be harmed.

Evaluate Risks and Take Precautions

In the risk assessment that you carry out, of course you can find out the risks that might occur when doing business. Once you know how big the risk is, you can take preventative action.

In the process, risk evaluation helps you reduce the level of risk and which hazards need to be prioritized first.

Documenting Discoveries

If the company where you work has more than 5 employees, it is mandatory to document the results of the risk assessment. The results should also include; the hazards you discovered, who they will impact, and a plan to reduce those risks.

Apart from that, when recording risk assessment results there are things that need to be considered:

  • Carry out proper checks on the company you work for
  • Determine who will be affected
  • Control and deal with obvious hazards
  • Initiate risk prevention measures
  • Involve staff in the process

5. Review the Assessment and Update it

Companies will continue to change as the business develops, therefore risks can change. After completing the risk assessment, don't forget to review and update it.

The purpose of doing this point is so that you can continue to take preventive measures and know what dangers the company will face. Always review and update the results of the risk assessment process that you carry out so that you stay abreast of developments and remain relevant.

Benefits of Carrying Out a Risk Assessment

Carrying out a risk assessment will help you as a party in the company to provide efforts to prevent losses within the organization.

As business continues to develop, the dangers will become more diverse. Therefore, the benefit of risk assessment is as a preventive measure for companies when they experience serious losses in running a business.

Risk assessment as a strategic process is usually carried out in various departments. Both formally and informally, this is done to understand the impact of actions and minimize risks.

To learn the risk assessment process and do it correctly, you can take the short program at prasmul-eli!

Currently, prasmul-eli provides various short programs to improve your skills at work. Starting from programs to sharpen leadership skills, research, innovation creation strategies, and much more.


Interested in increasing your knowledge and performing better as an employee? Take part in a short program featuring experienced speakers at Prasmul-Eli. For further information, click this link!

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Employee Engagement, One of the Effective HR Strategies
19 June 2024

One of the determining factors for company stability and success is employee engagement. Behind the company's reputation and success as seen from the outside, it cannot be denied that the active role of the employees is also involved.

So, what is included in employee engagement as an effective HR strategy to support successful company branding?

This concept, which was first popularized by  Gallup Consultants in 2004, is an attempt to understand the relationship between companies and their employees. This thing can be measured both qualitatively and quantitatively.

So what is its role that is called one of the efforts that HR can make to build the success and stability of the company? Read this article to the end to understand the concept, okay?

The Important Role of Employee Engagement

Even though the aim is to contribute to the success and maintain the stability of the company, employee engagement can be seen from two sides, namely the perspective of the company and the employee.

From a company perspective, employee engagement is an effort to assess how loyal employees are at work. This loyalty is not only assessed based on the work completed, but also includes the duration of the work and its quality.

Apart from that, companies also want to know whether employees feel proud of what they do for the company.

Meanwhile, from an employee's perspective, employee engagement is an effort to realize their role in the company. This needs to be known so that the company can continue to support employees so that they remain enthusiastic about working.

Apart from that, it can also foster a sense of having contributed to the company while working at the company.

It can be concluded that employee engagement is not only concerned with the company, but also seen from the employee's perspective. However, basically there is only one goal, namely to help maintain the stability and success of the organization within the company.

Strategy to Increase Employee Engagement

There are several strategies for increasing employee engagement within the company. This strategy certainly needs to be tried for those of you who want to measure how successful this concept is in the company.

The following is the strategy:

Intense Communication

Establishing intense communication can foster a sense of trust between the company and employees, as well as team members and managers. In employee engagement, communication needs to be two-way and intense to understand the company's position and employee opinions.

Some examples of building intense communication are as follows:

  • Hold regular meetings to share important matters within the company and let employees understand the state of the company.
  • Create communication channels that are easily accessible, for example mailing lists, communication groups for short messages or groups on the office communication channels used.
  • Create a digital form for suggestions and criticism when the company holds activities for employees. This is useful for understanding whether employees enjoy or have other input for the program provided.

Rewarding Positive Contributions

Getting to know employees well, appreciating achievements and providing opportunities for self-development is one of the employee engagement efforts. With this, employees feel more positively appreciated and motivated to work harder or be more comfortable in the company.

Opportunities for Self-Transformation

In an era of intense business competition, giving employees the opportunity to transform themselves can be an employee engagement effort provided by the company. By providing opportunities for self-transformation for employees, it can make employees more persistent and improve their skills.

This can certainly help the company in the end. Some examples of self-transformation opportunities for employees are as follows:

  • Providing challenging projects for employees who like challenges at work.
  • Organize training both according to duties and to develop other skills.
  • Make a clear career plan for each employee so that they have a clear picture and make their performance better and more enthusiastic.

Benefits of Employee Engagement

In general, the benefits of employee engagement are improving work results in the company. However, there are several quite significant benefits that can be generated by people engagement as an HR strategy, namely;

Absenteeism Rates Decreased

Employees who feel engaged or feel connected tend to be loyal to their jobs and the company where they work. This is because he may be more motivated and also find the work environment pleasant.

Positive engagement between employees and the company will help improve the percentage of employee attendance.

Increasing Employee Production

What makes a significant difference with employee engagement? Another thing that is quite profitable is increasing the production of employee work.

If this can be applied to the majority of employees, it can certainly speed up the process of realizing the company's vision and mission.

Extending Employee Service Period

Employees will tend to stay in a company if they feel appreciated. This way of appreciating employees is one of the employee engagement efforts.

Employees who feel involved and appreciated will be more enthusiastic about working. As a result, employees will stay in a company for a long time because they believe they can grow together.

Employee engagement is only one of the efforts made by the company through HR. To do this requires skills in leadership and resource management.

These two things are important points and can be learned at prasmul-eli!

Currently, prasmul-eli is opening a short program that will provide material regarding leadership skill development, resource management, innovation strategies and much more. The short program at Prasmul-Eli also presents presenters who are experienced in their fields.
With this, of course you will get a lot of insight. Interested in joining this program? Click this link for further information!

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Change Management: Meaning, Benefits, Framework, and Steps to Do It
18 June 2024

In a company, changes can result in decreased work productivity and even losses. Therefore, proper change management is needed.

There are several types of frameworks that you can use to ensure changes in your business can be implemented and accepted well. In this article we will explain in full about change management.

What is Change Management?

Change management is a systematic step that companies must take in implementing organizational, operational changes, and the technology adaptation process. In other words, companies must ensure change continues while encouraging employees to take part in it.

According to TechTarget, change within a company, on any scale, can cause stress and discomfort. Decreased productivity and job satisfaction are only a small part of the negative impacts of messy change.

Before making changes within your company, you should consider the following:

  • Impact of changes on operations and employee conditions.
  • Prepare clear stages and implementation schedule.
  • Document all stages and change processes so that nothing is missed.

All of the above considerations will form the right change management plan. You can also choose a framework that suits the type of change and all employees.

Benefits of Change Management

If the company has a structured and systematic change management plan, the following are a number of benefits that will be felt:

For companies

  • Complete system and documentation.
  • Ensure the similarity of expected and occurring changes.
  • Automation systems can be adopted precisely and quickly.
  • Can identify what needs to be changed and eliminated.
  • Can determine infrastructure whose function can be changed.

For employees

  • Understand the reasons and solutions carried out by the company in the change process.
  • Understand the role and impact that can be provided during the change process.
  • Equalize the perspective and feelings of each employee towards change.
  • Understanding that his and the company's future is on the same path.
  • Can compare expectations and facts of changes that will occur.

Types of Change Management Frameworks

As mentioned above, there are several types of change management frameworks to ensure a smooth process. Summarizing Apty, here are four frameworks commonly used by companies in carrying out change management.

Kotter change management

This framework was popularized by Harvard professor John Kotter. The process he introduced is popular and has been used by many companies since 1996.

Kotter divides the change management process into eight important steps.

  1. Create urgency for change.
  2. Building collaboration within the organization to support change.
  3. Create a strategic and realistic vision.
  4. Can convey the vision well and clearly.
  5. Encourage various parties to take part in the process.
  6. Celebrate all small and short-term achievements.
  7. Maintain the duration and speed of the change process.
  8. Cultivate and form a corporate culture within the company.

When creating urgency for a change, you must be able to convey the reasons and the problem you are trying to solve. Make sure this information is conveyed transparently to employees.

Lewin's change management model

This change management model is quite simple, Lurt Lewin describes the following three phases.

Unfreeze

This phase is used to map out what needs to be changed and what kind of preparation is needed. In detail, pay attention to the following three things:

  • Decide what to change.
  • Analyze the company's current operations and what changes need to be made.
  • Communicate changes transparently.

Change

This phase is when all changes begin to be implemented. Make sure these two things are done:

  • Ensure all employees understand the positive impact of change.
  • Provide training and time for employees to adapt.

Refreeze

This final phase is to ensure the changes are implemented correctly. Three things to do are:

  • Convey again the goals and impacts that will occur from changes to the company's internal processes.
  • Ensure company stability during and after changes.
  • Celebrate success and success in making changes.

PDSA

This change management is a framework that prioritizes continuity. This means that even though changes have been implemented, the process will continue to be optimized and developed. The PDSA stages are:

  • Plan – Identify changes and develop a plan.
  • Do – Make changes from the smallest scale.
  • Study – Analyze the results of changes and identify successful patterns that need to be corrected.
  • Act – Make decisions and implement changes based on analysis and lessons learned.

This change management helps companies and employees to remain flexible and develop.

ADKAR model from Prosci

This framework prioritizes perceived outcomes in change management. Prosci outlined these five results or achievements:

  • Awareness – Company management explains the changes that will occur and their causes.
  • Desire – Leaders and managers ask for employee support through case studies and facts about company conditions. It is recommended to conduct 1-on-1s to understand employee opinions and concerns.
  • Knowledge – Changes are implemented thoroughly. Companies must hold training to support employees in adapting.
  • Ability – Employees will begin to apply changes in their daily work.
  • Reinforcement – ​​Give appreciation to employees for implementing and making the change a success.

Steps to Perform Change Management

If you look at the various frameworks above, the key steps for effective change management are:

Open-minded leader

Quoting Asis Online, feelings of frustration and uncertainty in change can be overcome by a company that can embrace all parties and be open. Internal stakeholders, clients, employees and consumers must receive a complete explanation and understand the new steps the company will take. The right leader will ensure all of those things happen.

Involvement of all related parties

Still related to the previous point, change requires help from all parties in the company. Every team, stakeholder and employee must work together to carry out and support the change process.

Open and clear communication

It can be concluded from the various frameworks above, transparent, intensive, effective and personal communication can help the change process run smoothly.

Change-related training

Employees must receive training and be given realistic time to adapt to changes. Managers can hold 1-on-1 sessions to check on employee conditions.

Clear success metrics

The final step is to determine realistic and clear targets for success. Frustration and uncertainty can result from metrics that are “too high” or impossible to achieve in a short time frame.

That is a summary of change management so that companies can avoid problems that could have a bad impact.

Through proper change management, the mission and vision of leaders and employees will be united. Therefore, change management is a process that must be prepared carefully.

Before making a decision, you should first study the change process and management.

Join the prasmul-eli short program and learn about various change processes and management!
Click here now to discover classes and programs!

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Customer Relationship: Meaning, Benefits, Types, How to Build, and the Difference from Customer Service
17 June 2024

The relationship between business and consumers must be a primary concern and continue to be maintained. Building strong customer relationships is one way.

Consumers always expect business commitment to provide the best products and services. Consumer loyalty is a result that will be directly proportional to business profits.

In this article, you will learn in depth about customer relationships, from the meaning, benefits, types, to how to build them.

What is Customer Relationship?

Customer relationship is a method used by companies to ensure customer satisfaction and loyalty. This method, citing HubSpot, requires companies to proactively provide the best service, solutions to consumer problems, and ensure their needs are met.

Companies with the best products or services are not limited to what they sell. Because today's consumers also want to know the image of the product and the level of company awareness after the product or service is purchased.

Therefore, strong customer relationships will ensure business success in the future.

Benefits of Customer Relationships

In addition from bringing business success, also know the benefits of customer relationships in your business in the short and long term.

  • Consumer loyalty to buy any product sold.
  • Know and understand consumer needs.
  • Becomes important capital in making business decisions.
  • Understand what problems they face and how the product can help them.
  • Improve the overall reputation and image of the company.
  • Make your brand or business at the top of consumers' minds.
  • Improve customer experience and satisfaction.
  • Creating opportunities for businesses to have more diverse products.

Types of Customer Relationships

Depending on the business, type of product, and type of consumer, there are three types of customer relationships. Summarizing HiverHQ, here is the complete explanation:

Proactive customer relations

Proactive customer relations is directly building customer relationships proactively. Companies must contact consumers before any complaints or problems occur. From the start, companies must:

  • know who the consumers are
  • what are the needs
  • what is the thought process before buying
  • what kind of product is expected
  • what image is expected
  • understand how to keep them satisfied

You can run this type with a variety of rewarded surveys. Make sure the survey is run consistently, for example every quarter (3 months).

Reactive customer relations

Different from the previous type, reactive customer relations is a way for businesses to respond to, understand and resolve problems experienced by consumers. Therefore, you must know all the problems and complaints that consumers convey in various forms and platforms.

Several strategies that businesses can implement to produce positive reactive customer relations include:

  • Validate consumer complaints and input.
  • Apologize and make sure the business is ready to resolve the complaint.
  • Understand the problem and offer the best solution.
  • Follow up even though the problem has been resolved and show concern.

Strategic customer relations

Strategic customer relations means that the company's culture and references are based on consumer needs and satisfaction. Every product made is always confirmed and tested by loyal consumers. Usually this type is carried out by companies that already have a special image in general.

How to Build Customer Relationships

Follow these steps to build good customer relationships:

Build a strong foundation in communication

Good relationships are based on clear and open communication. Convey all information as it is and use sentences that are easy to understand. Avoid jargon or difficult words.

Be realistic and don't lie

Don't give false and unrealistic hopes. Make sure the solution offered makes sense and can be done easily by consumers.

Receive and collect input from consumers

Always record and pay attention to every input, suggestion, and complaint submitted. Use this as a reference for development and solving various problems.

Track the problem resolution process

As long as the problem is not resolved, consumers should not have to report the same thing again. Also track the problem resolution process with the relevant team. Continue to convey how far your team is working.

Anticipate consumer needs

Even though the problem has been resolved, consumers will continue to use your product or service. By understanding consumer habits and profiles, create a list of needs that may arise in the future.

Make the relationship more personal

Make consumers feel like you are a friend who helps them solve problems. You can also call consumers by name in each communication process.

Monitor consumer changes

Monitor consumer changes and check for possible problems that may occur. These problems can be related to how the product works, the taste of the product, the impact of the product on consumers, and even the image of the product.

Competitor analysis

Find out how they build relationships with consumers. Especially competitors in the same industry. You can build stronger and better relationships to attract new consumers.

Understand market changes

Understand market changes and consumer needs. Changes that occur in the economy, ways of thinking, and needs will influence the company's customer relationship strategy.

Reach new consumers

Reach potential consumers who can become loyal consumers in the future. You can expand the range of services or products marketed or add product lines.

Difference between Customer Relationship and Customer Service

In short, here are the basic differences between customer relationship and customer service:

  • Customer service focuses on the process of solving consumer problems directly.
  • Meanwhile, customer relationship focuses on the process of building and maintaining long-term relationships with consumers.

Both play an important role in business and consumer relationships.

Customer relationship is a concrete step to ensure consumers continue to use your product in the long term.

Building customer relationships requires time and the right strategy.

Want to learn more about customer relationships and how to build them?
Join our class and learn how to build good customer relationships, click here now!

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Time Value of Money: Meaning, Benefits, Concept, Formula, Examples, and When to Use
14 June 2024

With IDR 200 thousand in the past you could shop for more goods than now. This situation is an example of the time value of money.

This situation occurs because the value of the money you have now may change or even decrease in the future. One way to overcome these changes is with long-term investment.

Therefore, in this article you must learn in full about the time value of money from various concepts to calculation formulas.

Understanding Time Value of Money

Time value of money is a financial concept where the current value of money may decrease in the future. This reduction in value is caused by time, fluctuations in bank interest, and inflation.

Investopedia illustrates this concept with the following case example. If you are offered IDR 5 million now or in two years, it would be better to accept the money now.

Even though the amount of Rp. 5 million will not change in the next two years, the value and goods it can buy will decrease. This is caused by the factors mentioned above.

Therefore, by receiving IDR 5 million now, you can increase its value by investing. That way, you will receive additional money from the investment.

Benefits of Time Value of Money

Maybe you think that time value of money is a bad thing, but that's not always the case. Here are some ways to take advantage of this:

  • Become a guide for determining the investment amount.
  • Knowing when you should use money and for what.
  • Knowing what investment instruments will be profitable in the future.
  • Helping you choose the right savings product, for example deposits.
  • Take into account the money you will have in the future with a financial plan.
  • Regarding business, you can calculate production and innovation budgets.
  • Calculate your profit opportunities in the future.

Time Value of Money concept

Summarized from MasterClass, based on changes in time and ways of looking at the value of money, there are three concepts of time value of money, namely:

Present value

Present value is the amount of money you need to invest now to get a certain profit in the future. Briefly the current value of money. This amount also serves as a benchmark for the amount of interest you will receive after investing.

Future value

Future value is a prediction of the amount of profit you will get based on a certain interest rate and duration. Briefly the future value of money. For example, based on present value, you invest IDR 100 million. By calculating high interest rates, you will get greater profits/future value.

Annuities

An annuity is additional income that you receive consistently over a certain period of time. For example, if you own a boarding house business, every month you will receive an annuity in the form of rent.

Time Value of Money Formula and Examples

To calculate the time value of money, you can calculate it based on each concept. Beforehand, you must understand the following terms:

  • FV = future value/future value of money
  • PV = present value/current value of money
  • r = interest rate
  • n = time period

After understanding the terms, here are the formulas and examples of calculations, citing BankRate:

Present value (PV) calculation formula and example

The present value formula is PV = FV / (1 + r)ⁿ.

Example of PV calculation: You have a savings target of IDR 25,000,000 within 3 years. You decide to create a deposit account with an interest rate of 10% annually. Based on the formula above, the calculation is:

PV = 25,000,000 / (1 + 10%)3

PV = 25,000,000 / 1.331

PV or money you have to prepare now = IDR 18,782,870

Formula and examples of future value (FV) calculations

The formula is FV = PV x (1 + r)ⁿ.

Example of calculating future value: if you save a deposit in a bank of IDR 15,000,000 with an interest rate of 10% annually. You have a plan to keep it for 3 years.

First year FV: 15,000,000 x (1+0.10) = 15,000,000 x 1.10 = IDR 16,500,000

Second year FV: 16,500,000 x 1.10 = Rp. 18,150,000

Third year FV: 18,150,000 x 1.10 = IDR 19,965,000

With the calculations above, it can be concluded that the total profit you will get in three years is IDR 4,965,000.

When should Time Value of Money calculations be used?

We recommend that you use time value of money calculations in the following situations:

  • When you are considering whether to buy or rent a house, and the amount needed between the two.
  • When calculating the amount of insurance premium you want to take and the investment amount.
  • When starting an investment, including choosing an instrument, the initial investment amount, and the investment period.
  • When considering buying a car, motorbike or other valuable items.
  • When considering paying debt/credit or investment first with an annual bonus.
  • When your company wants to acquire a smaller company.
  • When your company wants to buy new equipment for production.

By understanding the time value of money, you can estimate the benefits of the money you have now if invested correctly.

Want to learn more about the time value of money and how to use it for future profits?


Join our short program and learn from the experts by clicking here now!

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Upskilling: Definition, Benefits, How to Create a Program, and Examples of Programs
13 June 2024

Upskilling is one way to meet company targets and needs. This effort takes the form of new skills and experience that can help them complete their work.

Upskilling can also be a program created by a company to help its employees. Find out more about upskilling, how to create a program, and program recommendations below.

Understanding Upskilling

Upskilling is a professional skills development strategy to increase employee productivity and work quality. According to Oracle, in this program the company will target several things, such as adding new skills according to the job, developing skills that employees already have, and changing the way employees work to increase effectiveness.

By adding new capabilities, employees can expand their portfolio and companies can ensure their new targets are achieved. Companies usually consider upskilling as an investment, because the results will help the company progress further.

Benefits of Upskilling

The benefits of upskilling are not only felt by employees, but also companies. Here are some of the benefits, according to FDM Group:

Adapting to market needs

Upskilling is the right strategy when a company wants to face changes and business needs. Employees also get the opportunity to enrich their portfolio.

Opportunity to master new technology

Changes in market needs are not only caused by consumers and the economy, but also technological developments. Starting from Artificial Intelligence (AI), automation, to various tools for business needs.

Employees can increase their abilities to master this new technology. Companies can also adopt the use of these tools to achieve targets.

Form a solid and effective team

Developing employees will make the team understand each other's roles better. The team will be more solid and effective in completing a project or problem. They also have the potential to learn from each other and monitor each other's performance.

Maximize time and resources

By improving and increasing employee capabilities, companies don't need to bother looking for new talents. By having employees who have worked in the company for a long time, you no longer need to bother retraining regarding the company's internal values.

Increase productivity and job satisfaction

In a company, employees certainly have hopes and targets to achieve. Not only do they increase their work experience, they also want to have new skills so that their "selling value" increases. With upskilling provided by the company, productivity will increase and their job satisfaction will also increase.

Support company success

Of course, with developing employees, they will be able to solve more complex problems or projects. The company also has new targets to achieve with greater profits.

The company's selling value in the eyes of job seekers

Lastly, when a company opens new job vacancies, of course an upskilling program can be one of the benefits offered. Many job seekers today are looking for opportunities to gain experience and develop skills while working for one company.

How to Build an Upskilling Program

Make sure you have a plan and program that is mature and meets the needs of employees and the business. Summarizing Betterworks, here are several ways to build the right upskilling program:

Identify the skills that employees already have

To find out what kind of upskilling program to run, first make sure you know what abilities your employees already have. Also identify their aspirations and what skills they want to learn.

Analyze the types of capabilities the market requires

Identify what skills are currently popular among competitors or the market in general. That way, you can map what capabilities the company needs. After that, match these needs with the employee profile.

Create targets that are in line with the business

Business targets can be determined through:

  • market research
  • competitor analysis
  • changes in the industry

Keep an eye on new needs as they arise

This means that companies must be able to anticipate new problems and needs that arise during the upskilling program. Ensure programs are continuously updated and business targets are flexible. You also have to set a flexible timeline or program duration.

Know the type of upskilling required

In general, there are two types of upskilling that you can do, including:

Internal upskilling program

This type of upskilling usually utilizes senior and experienced employees in the company. So companies don't need to use external services that require extra expenses.

External upskilling program

This type of program usually requires a budget or additional costs because it has to use external services. You can also do a mutually beneficial inter-business collaboration.

Analyze opportunities for employees to change roles

As has been explained, upskilling helps employees to add and develop new abilities. That way, this program can give rise to potential new roles or changes in employee roles.

You can determine whether the employee deserves a promotion after the upskilling program is completed.

Check-in and make sure the program is running as intended

Check-ins can occur once per week or once per fortnight. Make sure that every check-in, a target is achieved. Also make sure you ask for input and opinions from employees regarding the program.

Example of an Upskilling Program

There are many upskilling programs that employees can take part in. Depending on your needs, you can choose a long or short term program.

If you need a specific and short skills development program, then Short Training Programs from prasmul-eli could be the best solution!

In this short program, employees can develop abilities that influence the company's business strategy.

This program presents experts directly from their fields. If interested, you can click here to learn more and enroll in the program.

That is an explanation of upskilling which can help employees increase their productivity and work results.

Companies can provide upskilling programs according to business and employee needs. One of the programs that can be chosen is short programs from Prasmul-Eli.


Click here to learn and follow the program.

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What is Inventory: Types, Examples, Goals, Challenges, and How to Manage
12 June 2024

Inventory is a form of asset that shows that a company has products to produce and sell. Inventory management is not arbitrary, because it will affect the number of sales.

Inventory also has various shapes and types, depending on the industry the company operates in. Therefore, get to know what inventory is and how to manage it in this article!

What is Inventory?

Inventory is the material or raw materials for making a product. Sometimes, according to Investopedia, inventory can also be the main product sold. Inventory must be recorded neatly and in detail in the company's books.

The correct inventory management process will help companies save operational and production costs. Below, we explain the goals, benefits, challenges, and how to manage company inventory.

Goals of Managing Inventory

Not only to ensure the company has materials for production, here are some of the purposes of managing inventory, summarized from Easyecom:

  1. Ensure that the quantity of goods is sufficient for production and sale.
  2. Avoid miscalculations.
  3. Maximize production duration.
  4. Optimize budgets and business plans.
  5. Ensure the accuracy of goods purchased by consumers.

Benefits of Managing Inventory

Once you know the purpose, you must also understand the benefits of managing inventory properly:

More efficient

During the process of managing inventory, you will definitely learn about prices and available stock of goods. By knowing this, you can calculate the stock available at several locations. That way, the company only needs to order goods once and spread the stock to several locations. This will help companies save on shipping and operational costs.

Improving the quality of cash flow

By cutting operational costs, the company's cash flow will certainly get better. Especially when sales continue to repeat and increase income and profits.

Consumers become satisfied and loyal

By having stock in several locations or warehouses, you can speed up the process of sending products to consumers. Of course, while maintaining the quality of the product or goods ordered. Customers will become more loyal.

Automate tasks in the warehouse

Inventory management can be done with the help of applications. This will automate many management processes. That way, workers can focus on other things and production runs more effectively.

Improve worker performance

With the automation process, workers have a more focused work scope. They will have more time to complete major obligations. In addition, productivity and production effectiveness will increase.

Challenges of Managing Inventory

Quoting NetSuite, here are some of the challenges in managing inventory:

  1. Ensure inventory figures are accurate.
  2. Without the help of automation, manual processes will take a long time.
  3. Changing consumer needs mean that inventory must be updated.
  4. Maximize the warehouse so that inventory is neatly organized and products continue to run.

Types and Examples of Inventory

Raw/raw materials

As the name suggests, the items in this type of inventory are the main materials for making a product. For example:

  • flour and eggs for making bread
  • coffee beans and coffee filters to make coffee
  • rice, eggs, oil, onions, meat for stalls or restaurants

Items still in production

Usually there is a special inventory to ensure goods have not finished production. Later, the goods production process will continue to become new products. For example:

  • Cake dough that is stored overnight to rise.
  • Casings, engines and other components to make cellphones.

Finished goods/products ready to sell

This type of inventory consists of finished and ready-to-sell goods. So there is no need for a production process or to have gone through it. Example:

  • tissue inventory
  • milk inventory
  • new HP inventory
  • new motorbike inventory

Component

This type of inventory is also goods sold by the company. For example:

  • Engines, bodies, seats, wheels, rims, exhausts, chains and lights for motorbike production.

Operational and maintenance/repair tools

This inventory is usually stored in the same warehouse as the production site. All tools that must be used or used by workers to carry out production, for example:

  • various production machines
  • gloves
  • face mask
  • hard hats
  • cleaning tool

Packaging materials

As the name suggests, there is a special inventory for product packaging materials. For example:

  • bubble wrap
  • plastic wrapping
  • wrapping paper
  • packing box

Inventory for refill items

This inventory is usually needed in restaurants or hospitals, because it must be ready to be refilled when it runs out. For example:

  • tissue
  • dish soap
  • toothpick
  • hand sanitizer
  • disposable mask and gloves

Extra inventory

This type of inventory is kept for goods that are difficult to find on the market or whose prices fluctuate. So per

Businesses will buy 2-3 products at once. For example:

  • motorbike engine components
  • chemicals
  • special machinery

Transit inventory

The goods included in this inventory will not last long in the warehouse. Because these items are only staying overnight or are being stored temporarily to be moved again. Example:

  • The workshop will order machine components directly from the factory, then these components will be entrusted to the factory's branch or shop so they can be picked up later.

Reserve inventory

The difference with extra inventory is that for this type of inventory the items stored are often sought after or run out quickly. So companies will buy them in larger quantities to continue to meet consumer needs when there is a shortage. For example:

  • cat litter
  • motorbike outer tire
  • new rims
  • motorbike glass
  • motorbike seat
  • packaging raw materials

Leftover/unsold inventory

As the name suggests, this inventory stores leftover and unsold items. Usually also items that are out of season. For example:

  • seasonal clothing or special collaborations
  • seasonal food or drink
  • bath and beauty products that don't sell out

How to Manage Inventory

Monitoring the availability of goods

First, of course, you have to monitor the number of goods and stock in inventory. Make sure the quantity is sufficient for production. Make a dose per week or per month.

Using online or cloud-based inventory

Today inventory can be managed and monitored with the touch of a finger. You can work with an online inventory service provider and access it via computer or cellphone.

Calculation for replenishment inventory

If you work in the service industry, of course calculating refill inventory will be very helpful. Make weekly or even daily calculations to maintain stock.

Create a batch system

To support the refill or restock process, create batches where you will make purchases within a certain time period. You can also divide what items are purchased in each batch.

Use a barcode system

The barcode system will make it easier for you to calculate stock and availability of goods.

The ability to manage inventory can be developed by learning directly from experts.
You can take our short training program to learn about inventory management by clicking here now!

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What is Negotiation? These are the goals, stages and things you need to pay attention to
04 June 2024

You have probably heard the term negotiation often, but what is negotiation actually? In fact, there are still many people who don't understand that negotiation requires special skills.

Negotiation itself is a two-way communication process that aims to reach mutual agreement for various interests.

Is a form of discussion, negotiation is usually carried out to obtain an agreement. Therefore, negotiations usually consist of many parties. Getting an agreement is not easy.

Several stages of negotiation must be carried out to achieve this. Apart from that, several factors also influence whether the negotiation process can run smoothly or vice versa. One of them is the attitude of both parties which could influence the outcome of the agreement.

Want to find out more about negotiation? Read this article to understand how negotiation can be one of the basic skills in business!

Definition of Negotiation

Negotiation is a term used to refer to a discussion to solve a problem. In negotiations, the problem resolution is expected to be acceptable to both parties.

Negotiations involve give and take. In other words, in the negotiation process there are also parties who need to make sacrifices to achieve the best mutual agreement for both parties.

Negotiations can be carried out in business between sellers and buyers, superiors and employees, and many more. Negotiation is a situation that we can do every day during our activities, whether consciously or unconsciously.

So actually, what is the purpose of negotiations? The aim is as a discussion process to reach agreement. The purpose of negotiations is also so that something can be done immediately with the agreement of the parties involved.

After knowing what negotiation is, of course you need to know the stages so you don't take the wrong steps in practicing it.

Negotiation Stages

Apart from involving interested parties, you also need to know the stages of negotiation so that the process is smoother and more successful. The following are the stages of negotiation that you need to understand:

Preparation

Before starting what form negotiations take, there are several questions that can make you better prepared for negotiations:

  • What would you ideally like to get?
  • What do you want your realistic expectations to be?
  • What deals are you ready to do?
  • What will happen if negotiations fail?

In the negotiation preparation stage, you can also look for as much information as possible. Starting from the person who will be negotiated with to the topics that will be discussed.

Carrying out the preparation stage will help negotiations to be more effective.

Exchange Information

After making preparations, you are ready to negotiate. If the person you are talking to is smart enough, of course he or she will also have prepared themselves for the negotiation process they will face. At this stage, both parties will express their expected wishes.

Please remember, in negotiations it is not certain that all your wishes can be achieved. However, an effective negotiation process actually allows the negotiating parties to have other ideas.

Bargaining Process

When both parties enter the argumentation stage, that is where the negotiation process or what is called bargaining begins. In the negotiation process, the main key is to listen to the opinion of the other person and avoid making a dismissive attitude.

Please note that the negotiation process will not always run smoothly. Therefore, you need to focus on solutions for both parties without making it seem like your interests are the most important.

Agreement

When both parties are satisfied with the results of the discussion and the solution, this is the final stage of negotiations, namely closing the agreement. The next stage is to express ideas as solutions, both orally and in writing.

The agreed idea or solution is usually better because it outlines the position of each negotiating party. Apart from that, if one of the parties does not follow the results of the agreement, of course strict measures can be given.

Deciding Factors During Negotiations

Some people may be good negotiators, but there are also those who are not. For those of you who are still learning to negotiate, here are the things that determine whether negotiations will be more effective:

Attitude

Both your attitude and that of the person you are talking to really determine the negotiation process. All stages of negotiation are based on the attitudes of both parties in facing problems that require discussion.

However, attitude is also determined by personality and perspective. Focus on solutions to common problems so that discussions are more effective without negative arguments.

Knowledge

It is important to prepare when you want to negotiate, because it gives us knowledge. So what kind of knowledge is needed?

Some of them are knowledge of the subject of discussion and your own main goals in negotiating.

Interpersonal Skills

Having good interpersonal skills will make negotiations more effective. These interpersonal skills include; effective communication, how to listen to the other person, problem solving and decision making.

You can learn these interpersonal skills in everyday life. Not only does it apply in negotiations, but for other things it can make all discussions more effective and enjoyable.

Want to learn more about the art of negotiation, especially in the business sector? Take the Applied Negotiation Technique training program from prasmul-eli. In this program, you will be taught how to negotiate to gain sales profits in business.

The program is held over two days with comprehensive learning material and guided by experienced lecturers in communication and business. The duration is short, suitable for those of you who want to develop skills without interrupting activities.

What are you waiting for, register yourself to join the program at this link!

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Pricing Strategy: Definition, Goals, Factors, and How to Do It
06 June 2024

To create a pricing strategy, you need to do in-depth research, consideration and calculations.

You can't set prices based solely on the company's wants or needs. There are various important factors and ways to determine prices.

The following is a complete explanation of pricing strategies.

What Is a Pricing Strategy?

Pricing strategy is a method of determining the best price for a product or service.

According to HubSpot, this strategy must be based on many things, such as:

  • company business strategy
  • target consumers
  • needs of potential consumers
  • prices offered by competitors
  • current market or economic conditions

Pricing Strategy Objectives

Pricing strategy is not just about finding and determining a number. There are various goals or targets that will be achieved.

Attract consumers' attention

Quoted from Indeed, the price of a product will influence consumers' views and opinions. Later, they will compare your product and competitors.

Meet consumer expectations

In connection with the previous point, the process of comparing the prices of your product and competitors will answer; Is the price commensurate with the product's values?

Shows the value of a product

The more expensive it is, the better it is, or vice versa. Functional values ​​and what makes your product superior compared to competitors.

Determining company profits

The pricing strategy must refer to the income and profits obtained by the company. This strategy must be able to answer whether consumers like it and become loyal buyers.

Determining Factors of Pricing Strategy

The pricing strategy you create must be flexible to ensure consumer needs are met and company growth is guaranteed.

Here are some important factors in making it:

Economic conditions

Many businesses have to think twice when economic conditions decline. Decreased purchasing power is also included in this. An example is when consumers who are in weak economic times will prefer cheaper products.

So, an example of a pricing strategy that you use is focusing on profits and not considering price. So, if you are reluctant to reduce prices or make adjustments, consumers will choose competing products or services with similar quality but more affordable prices.

Market needs

Economic conditions will certainly influence market needs. Consumers who previously could buy your products or services every day, may suddenly become once a week or even not at all.

Apart from that, changes in consumer habits and needs can also be a factor in changing market conditions. For example, you only sell one soap product, but there are many competitors with lower prices.

So, an example of a pricing strategy that you must implement is flexibility and a willingness to adapt. You can create new products such as affordable shampoo with quality and competitive prices.

Company revenue and profit targets

Of course, your company wants to maximize profits from a product. So, in the strategy it must be clear what your sales goals are.

If you want income in a short time, then examples of pricing strategies that you can use are discounts and bundle promos.

Meanwhile, if you want long-term profits, then the example pricing strategy you create must prioritize consumer needs with the main aim of getting loyal consumers.

Who are your competitors?

You can carry out in-depth analysis and research regarding companies or brands that sell similar products.

Make sure that in your research the following questions are answered:

  • What prices do competitors set?
  • What is the attractiveness of competitors?
  • What kind of products and services do competitors offer?
  • What is the position of competitors in the market today?
  • What things can attract consumers' attention?

The value of the product or service

Surely you have heard the term "There is a price, there is an item". This term can be interpreted as if a product or service is expensive, then the quality must be good. But it is not always true.

So, the value that your product or service offers can influence consumers' opinions and views of the brand. You can be known as a company that offers affordable products with high quality.

Applicable regulations and consumer demographics

Make sure you follow the trade regulations that apply in Indonesia. You must also be able to meet the conditions required according to applicable regulations to create loyal consumers.

You can also create a pricing strategy based on the demographics of potential consumers. Make sure you map their age, place of residence, educational background, and type of work.

How to Set Prices

It's better not to immediately think about the number that will be the price of your product or service. To determine the price of a product or service, according to Shopify, you must have the following three foundations.

Determine the sales unit

Value metrics will determine the sales units of your product. For example, what is the price of your product per product, per box, per 100 boxes, or a special price for loyal consumers later.

This sales unit is important so that you don't set the same price for personal consumers, wholesalers or other companies. Another reason is that you can determine how much revenue and profit target you want to achieve.

Determining consumer profiles

As mentioned above, consumer habits, needs and demographics are very important in determining prices.

Make sure you create a complete and detailed profile regarding your target consumers. Also make sure the profile is in quantitative form (numbers).

You can record or target how many target consumers are in the profile you have created.

Examples of profiles in pricing strategies are:

  • Consumer profile A (high potential)
  • Age: 25-35 years
  • Gender: Female (80%) and Male (20%)
  • Location of residence: Jabodetabek, Surabaya, Makassar, Medan, Bali
  • Occupation: private employee, civil servant, and business owner

Estimated number of potential consumers:

  • Jabodetabek: 1 million
  • Surabaya: 750 thousand
  • Makassar: 100 thousand
  • Bali: 100 thousand

Conduct in-depth research and experiments

After you have value metrics and consumer profiles, it's time for you to do in-depth research on market conditions, consumer spending habits, and competitor analysis.

Don't forget to experiment with prices. With a flexible pricing strategy, you can change prices and sales units. Also analyze the results of your experiments, to gain insight and new values ​​regarding the product.

The right and appropriate pricing strategy will help your product become more valuable in the eyes of consumers. After that, you will get loyal consumers who will of course support your income and profits.

Want to learn more about pricing strategies and how to structure them?

Join our class and learn how to create the best pricing strategy and get examples.

Join our short program by clicking here now!

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SCAMPER Method: Understanding and How to Apply It
11 June 2024

In the process of developing ideas and plans, you can use various thinking methods. One of them is SCAMPER.

In SCAMPER there are various questions that aim to help you come up with the best ideas. The SCAMPER method can be used to create new products and services.

Here we explain more about the SCAMPER Method!

Understanding the SCAMPER Method

SCAMPER is a creative thinking method and technique that uses a series of questions to provoke innovation and new perspectives. According to Interaction-Design, SCAMPER consists of:

  • Substitute
  • Combine
  • Adapt
  • Modify (sometimes also called Magnify or Minify)
  • Put to another use
  • Eliminate
  • Rearrange

Each component has a list of questions that aim to sharpen your way of thinking.

SCAMPER Question List

Use the following list of questions from each component as a reference to form a framework for thinking and making decisions.

Substitute

  • You can focus on what changes or improvements need to be made with the following questions:
  • What new ways or methods can I use to improve the quality of products or services?
  • Should I change the composition of teams and tasks to make the process more effective?
  • Should I change the basic ingredients of this product?
  • Should I use new production techniques?
  • Can I use this method for other products?
  • What happens if my views and opinions on this product change?

Combine

In this component, you are challenged to combine and unite one or more materials, methods, and even people to produce innovation.

  • Can I combine these two ingredients?
  • Can I combine old materials with new materials?
  • How do I optimize this leftover material into a new material?
  • What will happen when I combine the two ingredients?
  • What will happen if I combine these methods and ingredients?
  • How can I help my team use this new method?

Adapt

As the name suggests, you will be asked to use your brain to utilize an object or resource in order to adapt and solve problems. Here's an example of a question:

  • What kind of changes must be undergone in order to adapt to consumer needs?
  • What values ​​and functions can be changed from this product?
  • Is this product only used for one function?
  • What processes and methods must change to produce the new product?

Modify (sometimes also called Magnify or Minify)

At this stage the list of questions will focus on product modifications and the methods you use to produce a product.

  • What can be modified about this product?
  • What value or function can be highlighted from this product?
  • Should the size be enlarged or reduced?
  • Should the color be lighter or darker?
  • Does the position need to be adjusted again?
  • Does this product need additional new features?
  • What kind of new features do users need?

Put to another use

You will be invited to analyze new ways to use the product through the following questions:

  • Are these products and services used in more than one industry?
  • What industries need this product?
  • Will this product change its function in other industries?
  • If used differently, will this product still work well?
  • Can this product be used by children?
  • Can this product only be used by adults?

Eliminate

The goal is to optimize your product through changes or eliminating certain parts. So, try answering the following questions:

  • What parts can I reduce without changing its function?
  • Can I reduce the manufacturing costs?
  • Can I lower the quality of the ingredients?
  • Am I an unnecessary part?
  • How to make this product smaller and lighter?
  • How can I make this product easier to use?

Rearrange

Finally, you will be challenged to do something that goes against your habits or basic processes.

  • Can I change the direction to the opposite?
  • What would happen if the manufacturing process were swapped?
  • What would happen if the positions were reversed?
  • Can I start the process with the final stages first?

How to Apply the SCAMPER Method

After getting to know the ins and outs, the SCAMPER method may seem complicated. To make it easier for you, here are some simple ways to implement it, summarized from Mindtool:

  1. Identify problems with products or services. Apart from problems, you can choose products that you feel need development.
  2. Start answering the questions above, starting from Substitute to Rearrange. You don't need to answer all the questions, if you feel it's not relevant to your needs, just skip it.
  3. These answers will produce new ideas, ways, methods and thought processes. Identify all these things according to the main objective.
  4. Use the most appropriate ideas, methods, and thought processes in new plans and changes to the product. Also make sure you have a backup idea or method.

Example of Application of the SCAMPER Method

For example, your company has a product in the form of an application that provides home repair services. It's been a month since the number of users has not increased. With the SCAMPER Method you want to increase the number of users.

Substitute

Try to identify the service ordering process in the application. Can you change the process for ordering these services? Are there any complaints or input from consumers regarding the services offered?

Combine

Can the craftsman who repairs house leaks also carry out the process of painting the interior of the house? Are there features that can be combined on 1 page, to make it easier for consumers?

Adapt

Do the services offered in the application meet the needs of your consumers? Do you have to make a new survey to determine what consumer needs are? Can the services you offer go beyond home repairs and maintenance?

Modify (sometimes also called Magnify or Minify)

Are there customer testimonials that can be highlighted in applications and social media to increase potential customers' trust? What new features can make things easier for consumers?

Put to another use

Do you have to change the location of potential customers from Jakarta and Tangerang to only Tangerang?

Eliminate

What features or ordering steps can be removed to make it easier for customers to use?

Rearrange

If you look, there are no questions or steps relevant to the problem above.

The questions above can produce answers to steps or ways to increase the number of customers for your services. Make sure you come up with concrete steps. For example, if you want to make a discount, ask again “How much? What services are discounted?”

Apart from using SCAMPER, you can also learn to hone your critical and creative thinking skills through a short training program from prasmul-eli!
You can learn directly from the experts! What are you waiting for, register and take the class by clicking here now!