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How Much Are Manual Processes Costing Your Business?

By Olivia Smith on Tue 16 May 2023 in CRM

Manual vs. Automated Processes

Do you know how much manual processes are actually costing your business? See a comparison between the use of manual and automated processes, learn how you can make the switch to automation, and read about how you can create a more productive workforce.

Manual vs. Automated Processes

Manual processes involve business activity that’s not being supported by automation – they’re often time-consuming and repetitive.

Examples of common manual processes include: 

Data entry 
Taking notes
Writing emails
Filling in documents 

Manual processes that aren’t efficient can be extremely costly. According to a 2018 study by Entrepreneur, inefficiency costs companies anywhere from 20% to 30% of their revenue every year. Not only do they lead to inefficiencies, but also human error.

Disadvantages of manual processes

There are a number of factors that can make manual processes so costly. 

Firstly, knowing where to prioritise your time can be a challenge. Manually completing processes such as filling in documents or writing emails over and over is not only a monotonous task, but also a time-consuming one. It may also require a number of employees at various stages to complete a task.

Manual processes also come with a lack of accountability. Long admin tasks that are performed by hand don’t leave a trail of who completed them. So, when an error is made, it’s difficult to discern who’s responsible. Limited visibility makes tracking employee progress an arduous task for managers, and employees will likely make more errors when they’re not liable or rewarded for their work.

Transitioning from manual to automated processes

Sales teams can roll out tens if not hundreds of the same email every day. Copying and pasting the same email time and time again, and inserting the relative customer’s name is a repetitive task that’s easily avoided with automation. With a system that automates this process for you, your Sales team can send out bulk emails with exactly the same content, but all the ‘fill in the blanks’ are completed for you (such as customer name and email address).

Not only will this optimise efficiency and standardise your team’s communication, it also allows you to send out targeted communications that are personalised to your clients – leading to an increased click-through rate!

Customer analytics are extremely useful within a business. They help you keep track of all your customers and see when they’re beginning to churn, so you can focus on retaining loyal customers and reactivating lost ones. Analysing a large database regularly and manually can require a lot of time and skill. However, with automation, analytics can take seconds to retrieve and access, so you can see which customers need engagement instantly. This can streamline a number of processes such as your sales pipeline, which is crucial for employees to monitor open opportunities and progress leads through the sales funnel.

The creation of detailed reports is also available through automation. Constructing daily reports can be a lengthy process, but having a system that build these in seconds will help you keep track of essential metrics. For example, a CRM system allows you to configure its reporting tool to give you the insights you need.

Another example of automation simplifying a manual process is link tracking. Manually noting down who has filled in a form on your website can be hard to keep track of and is something that must be regularly done for it to be worthwhile. Therefore, with the help of CRM automation, all the details of form fillers are translated into the system and logged automatically, providing the most up to date and in-depth information needed for further engagement.

Benefits of automation

Having a system in place that automates tedious tasks will greatly increase productivity and means less time is spend on administrative work. Automation therefore creates greater latitude for employees to focus on profit-driven work and optimise cashflow. 

Automation not only improves internal operations, but can also create a better customer experience. Preventing human error streamlines the buyer’s journey and reduces customer dissatisfaction.

Automation helps businesses to scale quickly and establish healthy margins by generating accurate and data-driven insights. Transitioning from manual to automated processes can have a huge organisational impact, reduce costs, and benefits employees as well as customers.

Prospect CRM is centred around optimising business processes with automated and data-driven insights. Tired of completing repetitive admin tasks? Sign up to our 14-day free trial and start focusing on profit-driven duties that produce real results.