When the demand for the services of any product or service is less than its optimum capacity. Then it is the perfect time when the management should take steps to improve the demand. There are multiple strategies that can be used to match demand and capacity.
If the service organization is operating at less than optimum capacity. Then it is losing on a lot of profits that could have been generated. So it becomes necessary that some of the other steps have to be taken to match the demand with the capacity of the organization.
What are the Strategies?
1. Communicate with the Customers
Communication is the key to success in many cases. And it remains true for this case as well. The service organization should communicate with its customers. This will remind the customers about the services of the organization.
This will automatically build up some demand for the services that are being offered by the service organization. The organization can also communicate about the discounts and other offers as well.
2. Run Promotions and Advertisements
The advertisements and the promotional activities have the potential to completely change the demand pattern. But the organization has to make sure that it is running the ads properly.
When the organization is spending its resources for the purpose of marketing. It has to make sure that the ads are being targeted to the right customers.
3. Offer Price Discounts
The service organization can attract customers towards it by offering discounts on its prices. The discounts being offered can be permanent in nature. That is cutting down the prices of the services.
Or the discount can be offered for a temporary period of time after which the price will be normal again. This strategy is one of the most promising strategies to match demand and capacity.
4. Promote Off-Peak Period Demands
There are a lot of industries which get huge demands during the seasons. But in the off-peak seasons, the demand is very low.
In certain industries, the service organizations halt the services due to this drastic change in the demand pattern. But this issue can be solved by promoting the off-peak period demand.
5. Offer Free Complimentary Services
The organization can attach customers towards it by offering free complimentary services. This is a very small thing to do.
But this will have a huge impact on the customer psychologically. This strategy will not only help to match the demand with the capacity. But also helps in improving customer satisfaction and also improves the customer perception.
6. Vary the Service Offerings
Sometimes the services being offered themselves are the reason for the low demand. If this is the case then the organization will have to make changes to the offerings in order to increase its demand and customer traffic.