So we’re approaching the end of the year and we all begin the process of evaluating whether we had a “good” year or not. And in that analysis and evaluation, we review each client. “Are you evaluating which clients were profitable and which clients are robbing your bottom line,” says Ellen Coulter, president of Advantage Software. “The ability to keeping on top of which clients are showing a profit or loss is an imperative tool for analyzing your agency’s business.”
How Can We Stop Killing Our Agency Profits?
“Client P&L reports in the advertising industry are part of typical monthly analysis and Advantage sets the standard for these reports.” – Ellen Coulter, president, Advantage Software
The best client profit and loss analysis comes from access to every piece of data that you can pull from an account’s history. The Advantage Client Profit and Loss datasets and reports include many different reporting options, including ones that allow you to calculate true employee cost.
“The ability to swiftly take corrective action on clients where you are losing money as well as what correction is needed can only be done if the information you have is timely, accurate, and complete,” adds Coulter. “No other system does more to help you manage your clients and keep them happy.”
- Track a client’s time loss. Does your agency do “free” work for your clients without billing? How much time is spent on these activities? How much money does your agency lose from these clients?
- Don’t be afraid to fire unprofitable clients. Remember, you’re in business to succeed. If you’re losing too much money on an agency client, don’t be afraid to address the issue with them and fire them if the situation won’t correct itself! You can always let them know that certain tasks or projects are out of scope and need to be quoted.
- Do better project and time estimating. “Advantage AQUA gives our agencies powerful executive dashboards that can instantly pull data to show how much time was spent on a particular project,” adds Coulter. “This is gold when it comes time to provide more precise estimates on repeat or similar project work.”
- Are your client projects too “team heavy?” – With the Advantage AQUA executive dashboard, you can evaluate individual employee costs associated with each client project. You can then determine if you are losing money because you have too many top team members on the project.
“Advantage AQUA can help you gather and deliver data sets that provide a clearer and more accurate picture of your agency’s profitability by employee, team, project and client,” says Coulter. “We developed system automated alerts to help our agencies know when client contracts are expiring and when specific reports are due. We help keep your agency profitable.”
Learn more about how the Executive Dashboard and related tools provide instant and visual insight into your business in real time to solve real problems! Learn more about how our agency software can keep your agency profitable and help minimize profit-busting clients by contacting Tina Hussion at email@example.com or call 800-841-2078. We look forward to showing you the awesome power of executive dashboards inside Webvantage AQUA!