A digital advertising technology client offers a self-service, omnichannel demand-side platform (DSP) that enables sales teams to create programmatic solutions for their customers. The company connects advertisers, agencies and buyers to deliver advertising solutions to the right audiences to maximize their sales investment.
Their strategic goal was to accelerate growth and expand wallet share by leveraging their teams, using a combination of self-service and managed service options. In addition, they wanted to increase retention while improving spend from existing clients. As a result, Alexander Group focused on their sales process to identify gaps and opportunities to help them meet their goal.
This project revealed that the client’s coverage model included several inefficiencies where the company was not consistently executing sales motions for similar buyers. For instance, for one customer, reps would consistently execute motions that resulted in a sale to a significant prospect yet not follow the same steps for a similar opportunity in the same vertical. Without a clear understanding of customer profiles, rep rules of engagement and product needs, it would be difficult for the client to reach its strategic goals.
The solution lies in aligning customer types, optimizing support resources, and defining consistent sales processes. We worked with the client to define a single question to achieve this goal: what kind of service do customers want?
Self-service, programmatic advertising options are attractive because they drive higher spending volume, greater retention and require less support service per dollar of client spend. However, clients must be willing to adopt the DSP platform to get the most from their investment and typically require ramping support to fully recognize the benefits of the platform.
Managed services require more support resources and have a discrete renewal process which may reduce overall retention, but customers are often more satisfied with the service. Additionally, managed service providers have distinct renewal and expansion opportunities once a campaign has been completed.
Alexander Group used VOC interviews to gain an in-depth understanding of unique customer profiles and the service levels, as well as type of service (managed versus self-service) required to support them. As a result, these interviews gave us a better understanding of why customers chose competing services and what they thought of the client’s value proposition.
Our client originally assumed that they needed to provide strong coverage and support to grow small accounts. However, our analysis revealed that only eight accounts grew in revenue, implying that initial customer segmentation was appropriate for defining coverage.
Next, we identified spend by account type. For agency or direct clients, 16% of accounts drove 76.7% or nearly $250 million of platform spend. In addition, approximately 43% of revenue was generated by 15 direct or agency accounts. This segmentation effort helped to identify specific, actionable recommendations based on the needs of unique account types.
VOC interviews revealed attributes including product, service, support preferences and industry sector attributes. Additional analyses looked at spend, the number of accounts and expected revenue.
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Alexander Group understands your revenue growth challenges. Since 1985, we’ve served more than 3,000 companies across the globe. This experience gives us not only a highly sophisticated set of best practices to grow revenue—we also have a rich repository of unique industry data that informs all our recommendations. Aligning product, marketing, operations and finance efforts behind a successful sales organization takes insight and hard work. We help the world’s leading organizations build the right revenue vision, transform their organizations and deliver results.