The official business definition of hard savings vs soft savings is an important distinction to understand. Hard savings refer to tangible cost reductions that can be easily measured and tracked. These are typically the result of a specific action or decision, such as cutting back on a particular expense or implementing a new process that reduces costs. Soft savings, on the other hand, are intangible benefits that are not easily quantified. These can include improved customer satisfaction, increased employee morale, or a better reputation in the marketplace. While hard savings are easier to measure and track, soft savings can often be just as important to a business’s success. It is important to understand the differences between hard and soft savings so that businesses can make informed decisions about their investments and maximize their return on investment.
