How media companies are maximizing efficiencies to drive profits
It’s an understatement to say that markets and buyer perspectives constantly change.
The ongoing transformations that mark media as a dynamic — but challenging — space require media companies to be proactive while still setting aggressive growth goals. With the future uncertain, there is little margin for error, especially regarding the bottom line.
Those dynamics now require companies to shift focus not on revenue but profit. Effective planning requires a deep understanding of what levers will improve the bottom line and ensure competitive positioning for future periods more aligned with top-line growth efforts.
Media companies that maximize efficiencies are driving profitable revenue
Profit is a simple accounting equation that reflects the difference between revenue and expenses. Today’s leading companies are shifting the equation by tweaking how they generate revenue and becoming more efficient at generating that revenue. In an uncertain economic environment, the goal is to ensure they generate maximum revenue from clients while creating a more efficient organization.
If managed correctly, the right investments, alignment and efficiencies within the organization can lead to more profitable revenue streams. Reviewing internal structures, such as go-to-market strategy and external needs, including pricing sensitivity, will allow companies to refine their operating model for increased profitability while retaining relationships.
Asking questions about external and internal focus or priorities is essential.
For instance, who are the clients, what is their spend, and how can they be served more efficiently while companies adapt to evolving markets? Companies must ensure their coverage allows them to keep materially important and profitable client relationships. Reflecting internally, organizations need to consider what investments create efficiencies while unifying focus on collaboration and adding value to revenue streams.
Refining sales approaches enhances valuable client relationships
Waiting too long to implement solutions is counterproductive and has the potential to damage market position. Media and consumer technology companies are addressing these focal points through three critical levers: markets, account coverage and internal capabilities.
Defining client and market segments, especially concerning profit potential, is vital to profitable growth. It requires identifying specific revenue segments and differentiation strategies, then evaluating each segment’s revenue, growth and spend. For growth, it is vital to target common expansion points, including new strategic products, and establish a strong account plan, including account coverage.
Client segments are inherently unique and ever-changing. Defining and monitoring these segments and their related resource requirements over time will position companies to adjust their approach to proactively preserve client relationships or release clients who are harmful to the mission of profitable growth.
Proper and efficient account coverage is also essential and requires appropriate resource deployment by client segment. An appropriate go-to-market and coverage strategy in today’s economic market helps expand revenue generation profitably, using efficient sales and support resources that optimize sales investments. The result is a market differentiator by serving each segment appropriately and efficiently, optimizing sales organization performance.
Some actions for teams to consider include evaluating structures to provide appropriate and efficient sales coverage across segments and investing in segment specialists to support sales reps. Organizations are finding success by keeping highly skilled representatives and support roles focused on high-spend accounts while offering less costly coverage options, including automated support, for low-potential accounts.
Without consistent review, it’s easy to let account coverage become stagnant and ineffective for current market conditions. The most effective way to match sales strategies to market conditions and evolving client needs is for companies to be flexible and revisit what resources clients need — both today and tomorrow.
Internal and external reflection helps organizations improve efficiency
Revisiting what resources your clients need from you today and tomorrow will require your company to be flexible, but it is the most effective way to match sales strategies to market conditions and evolving client needs.
Shifting to profitable growth requires a deep dive into internal capacities and investments necessary to support them. The goal is to provide the right amount of support so reps can continue to manage their book of business, effectively identify expansion or cross-sell opportunities, and use new account coverage approaches that optimize profits.
Key areas to evaluate include legacy constraints — which drive inefficient processes, tools and culture — and eliminating redundant oversight and resources. Breaking down silos helps the entire company focus on client requirements and improves organizational efficiency. Efficiency is about slashing costs and determining suitable investments based on customer segments. A one-size-fits-all approach is both expensive and unproductive.
Successful media and advertising firms are confidently moving into the future, understanding the synchronistic interaction between profit and the internal investments necessary to drive sales. Profit is once more a top priority, as firms now place advanced metrics to evaluate profitability by client, sales rep or team. This renewed focus on consistently evaluating and evolving structures will drive targeted, effective client interactions — and profit will follow.
Sponsored by Alexander Group
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