Cost reductions, process improvements, and efficiency methods are all keywords used to highlight activities that bring down operational expenses. Indeed, operating under lower costs is ideal. It improves the overall margin of the business. However, when it comes to extremes, this principle no longer brings the best benefit to the company.
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However, there are certain cases when cost reduction limits the business opportunity. In cases of research or expansion, spending resources is a given. Investments may be risky, but they carry some return when the performance and the environment worked well. Rare occasions of business disruption such as a natural calamity or the occurrence of a pandemic can affect current operations. As the customers are a priority, the business may somehow spend more resources to deliver the promise amidst the situation. This is a true mark of customer service.
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