In the world of “everything must be done now,” businesses scrambled to show customers that their response times were immediate and that their follow-through was on par with competitors. But peel back the curtain, and in reality, many of these automated principles are lacking in sophistication and causing more harm than good.
When a business uses automation ineffectively, it becomes increasingly harder to scale and more costly to run. Today’s fast-moving market doesn’t allow for errors. Customers will see right through a brand that promises promptness and speed when, in actuality, it lacks in this department. A chatbot may greet users as they land on a webpage, but directing them to send an email because the bot is “offline” isn’t necessarily solving their inquiries now. The same goes for providing shipping updates. Digital systems that lack quality can lead to frustrated customers who just want an update on when to expect their package.
Put simply, a “good enough” mentality for automation isn’t going to cut it. Here are just a handful of ways that unsophisticated automation is quietly costing businesses revenue.
Amplifies Organizational Chaos
Automation doesn’t solve fundamental organizational processes. If your team is currently lacking an efficient operational workflow, then an automated tool isn’t going to come in and save the day. Rather, it will only make the flaws show faster and can lead to more chaos within your organization.
To apply automation successfully, businesses must map out existing workflows and prioritize the areas to streamline. If multiple teammates are working on the same project but are unaware of status updates, then it may be helpful for an automated cloud-based work management platform to better organize the team and track daily tasks.
Creates “Process Debt”
Every company has a certain level of “process debt” — inefficient or outdated workflows that hinder productivity and growth. Employees might chalk it up and say, “This is the way it’s always been done”, or throw in the towel when it comes to solving the issue at hand. When employees are heads down and focused on their individual tasks, it’s harder for them to look up and become aware of what types of workflow problems may need to be addressed. As a result, “process debt” can quickly become a burden on an organization’s productivity.
For instance, if a sales team member for a car dealership has always funneled leads from first contact to closing the deal, they may not realize how much time they’re wasting on false or soft leads. While generating leads is an important part of the sales cog, that doesn’t mean that the one seller needs to be responsible from start to finish. Instead, relying on tools and industry-specific technology, such as automotive AI, may be a worthwhile investment.
Leaks Revenue
No business wants to have a leaky faucet — especially when it comes to revenue. A drip here or there may seem like no big deal; however, this slow drip can quickly turn into a cascading waterfall if the right systems aren’t put in place. Contracting discrepancies may mean that you invoice a client for an amount much higher than was agreed upon, while invoicing delays can be costing you relationships with current vendors.
Revenue leaks — or any money that a business earned but never collected — are largely due to disconnected, outdated systems and processes. Negotiated deals and contracts are signed, but the rate charged is lower because your automated tool is sending the client an old invoice with outdated pricing. Teams that rely heavily on these tools may not pick up the discrepancies until months down the road, when it’s too late to go back and upcharge clients for already completed work.
Increases Hidden Costs
So your business is leaking revenue and paying double the burden for it by trying to fix these inefficient automated systems. Instead of focusing on strategic work, they are fumbling through these tools, trying to find the solution, and wasting time and energy on it. Manually correcting errors may seem like a heroic task, but think about what that employee could have been doing for the business instead of tinkering and finding the leaking hole?
Hybrid and remote work make it even more crucial for business leaders and managers to ensure that their employees stay on task. Rather than applauding an employee for finding the error, they should be quick to ask why the error happened and how to prevent it. Additionally, employees may become agitated when their hard work isn’t being utilized sufficiently, and instead they’re spending time trying to track down errors and solve problems that could be done by a more sophisticated system.
Conclusion: “Good Enough” Automation Limits Potential Growth
“Good enough” systems aren’t going to move the needle in your business growth. They simply put Band-Aids on problems, masking what’s actually going on in hopes that team members can pick up the slack accordingly. These sub-part automated systems can put a damper on client or customer onboarding, operational efficiencies, and revenue.
A business with the intent to flourish needs reliable, smart, AI-driven solutions that will foster improved customer experiences. They need programs that deliver real-time visibility into businesses’ operations, creating streamlined inventory updates and around-the-clock customer support channels. Having these insights can lead to more informed, data-driven decisions from leadership.