Overview of the Situation
A data marketing agency was looking at ways to increase its portfolio of solutions and then bring new customers into their pipeline. Whilst successful within their base business, they knew that there was both more profit in additional solutions that they could provide as well as a greater level of engagement from those clients who would be buying more from the clients’ ecosystem.
The Problem They Faced
This agency had a significant number of clients for its core solutions but wanted to diversify into other areas, both for its current customer base, but to also engage with more prospects. They needed to formulate the new solutions, establish a way of introducing them into their current client base and find new customers that they could sell both their old and new programmes to.
The Causes of the Problem
There were two key reasons for the business not achieving its goals – firstly there was an inability to be able to invest confidently in the new solutions for fear of them not being what the market wanted, and secondly there was a need to find new prospects to sell to. Ultimately this was a case of a lack of time, and a lack of confidence despite the success of the business historically.
The Impact of the Problem
Whilst the core business would survive as it was, there was clearly limitations on its financial growth without new services, new customers, or both. In a sector where solutions are somewhat price sensitive, being a niche operator against bigger companies who can provide cheaper prices could ultimately lead to a decrease in turnover through business loss.
The Promise / Plan
Our plan with the client was to:
- Identify the current service portfolio, and its individual profitability
- Scope the new services and identify the target prospects that would be most suitable
- Create a marketing strategy to engage both on and offline with these prospects
- Define the pricing strategy for individual and package solutions
- Rebuild client contracts to ensure commitment
- Adjust payment process to bring forward a percentage of revenue ahead of service delivery
The business was extremely pleased with the programme as we:
- Supported them to sell two of the new services into their existing client base
- Generate a three-year contract with one client (normally only one year at a time)
- Increased company profit by 12%
- Increased monthly average turnover by £16,500
- Helped automate processes meaning that team workload only increased by 3 hours per month