The Anchor: 6 ways a digital agency can maximize profits

16 Oct,2012

By Saurabh Parmar


#1 Value-addition. Most digital agencies are production focused – websites, banners, applications. For any agency see what you can give as a value to your client. If one can do that price for a client does not become an issue for they see something tangible. Thus, increasing profitability.


#2 Focus on core competency and do not diverse too much. If you try to be a me-too agency and are focussing on larger chunk of business, your turnover may be higher but your profitability will always be lower. Pick out your core competency and focus on that rather than trying and doing everything under the sun.


#3 Look at clients’ marketing issues rather than what you as an agency can deliver as digital product. Clients spend crores on marketing. We need to come out with digital solutions that can service the clients’ marketing challenge, rather than suggest properties & add to the clutter. If you can solve the challenges and issues, you will get more profits.


#4 Analytics. Digital allows you to measure & measure a lot. Right from clicks, conversions to loyalty, recency and amplification. It’s a medium which can help you understand & optimize. Doing this gives the maximum profitability for a client & which in turn ensures maximum profitability for you.


#5 Embracing web-based tools. In the current world a lot of the agency’s business processes can be outsourced & improved with tools right from finance, CRM, teleconferencing etc. Using off the shelf tools, in a lot of cases their paid versions, has decreased our costs & increased profitability.


#6 Content. Creating content for new dynamic web is a great area to get into and is a high-value area. It is a high-growth and high-profit area that can be explored by the agencies.


Saurabh Parmar is Founder & CEO of Brandlogist Communications

 

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