Can implementing a quality system grow sales?

April 3, 2019

 

Many businesses looking at the cost of implementing a quality management system such as ISO 9001 or similar, don’t always look at the hidden impact it can have on growing the business.  The common process that we stumble across is that an ISO system comes up for discussion in the organisation due to a customer request or realisation that it will give something to shout about beyond competitors.  This is then discussed at management level and some costs are pulled together.  At this point, when faced with making the decision to jump in with an ISO accredited system, someone asks the burning question:  ‘Will this actually help grow our sales?’

The short answer, is that it most likely will do (and has done in many cases).  The more important (and longer) answer, is that it will certainly have an impact on your net profit and further than that the value of your business to investors.  Let’s review this in some more detail.

 

Sales growth

So let’s start with sales, seeing as this is the area we tend to watch first.  ISO 9001 can actually help to increase sales if it’s implemented properly.  Here’s a few reasons how:

  • A huge proportion of ISO is about providing a quality service to your customers.  The standard covers complaints handling and drives you to continuously improve.  The result?  Happy customers!  And we all know that happy customers drive repeat business and referrals – the safest and most cost effective way to build sales.

  • Companies who really put their back in to an ISO 9001 system will go as far as to systematise their proactive selling.  The standard can reach out to your sales team and help them become more productive by following proven processes and ensuring that leads are not dropped.

  • It is a requirement of the standard to have a regular Management Review Meeting.  This often leads to some strategic discussion around customer trends, how we have improved service etc.  This extra connection from Management to the customer is invaluable and further helps to put things in place to grow sales.

Profit growth

Here’s the real deal.  Let’s look at what implementing a Quality Management System can do to increase bottom line profits:

  • ISO 9001 is big on recording and handling customer complaints and in the process, systems get put in place to prevent these mistakes happening again.  This results in a few increased profit opportunities:

    • Happy customers pay better prices

    • Less returns means reduced wasted cost that would usually come straight off your net profit!

  • The other thing that we often find is an increase in staff morale.  Staff are much happier when they’re dealing with happy customers.  We all know success breeds success and we see this clearly operating when we work with clients who live and breathe their quality management system and the business just gets better and better.

  • Ever found yourself thinking about the best way to do something?  You can lose a good ten minutes just thinking about how a task should be done.  Not when you’re following a system – you just simply follow the proven method (improve it if you want to) and you’re done.  We see many productivity upturns as a quality management system works into the fibre of a business.  Your staff are your largest expense so use ISO to get a greater return on investment!

Hopefully this helps a few of you decide.  Let’s be clear, it’s not all plain-sailing.  Thinking in the way of a system sometimes involves change, which we all know can be tricky to implement.  But we can honestly say that if you wholeheartedly commit to a quality management system, it can have a significant impact on your numbers.  At the end of the day, it’s there to systematise good practices.

 

Don’t just take our word for it.  We have customers who would agree with every aspect of this blog.  If you would like us to send you their testimonials or put you in touch with them to discuss, please contact us on 01472 730530 or email info@qualiform.co.uk

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