maximize your underwriting revenue by managing your inventory
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Maximize Your Underwriting Revenue by Managing Your Inventory. Kirk Nelson, CRMC Vice President, Sales & Marketing. Inventory Behaving Badly. I always have tons of inventory… I have plenty of inventory, but Morning Edition is always sold out… - PowerPoint PPT PresentationTRANSCRIPT
Maximize Your Underwriting Revenue by
Managing Your Inventory
Kirk Nelson, CRMC
Vice President, Sales & Marketing
Inventory Behaving Badly
• I always have tons of inventory…
• I have plenty of inventory, but Morning Edition is always sold out…
• Our rates in morning and afternoon drive are FANTASTIC, and we still have tons of inventory left to sell…
Inventory Behaving Badly
• My drive time inventory is sold out, but I’ve got tons in midday, evenings and weekends…
• There are certain shows on the weekend where inventory always seems to be sold out, like Car Talk, but nobody seems to want to buy the other programs…
• We are sold out for the next six weeks…
Inventory Behaving Badly
• I’m only selling about 60% of my stations drive times, and only 25% of all the other dayparts…
• I’m doing a great job selling out my stations inventory, but I still haven’t made budget. I need more inventory…!
• So what’s the point ?
Inventory Management Path
1. Set Up Reports
2. Look for Stories
3. Create a Sales Strategy
4. Monitor Sales Behavior
5. Evaluate Results
Traffic Report Set-Up
• Avails Report
• Average Unit Rate report
• Billing History - Scheduled
• Billing Projection – Contracted
• Category Report – Conflict Codes
• Aged Receivables
Look For Stories
• The obvious:
– Tons of inventory?
– Disproportionate use of drive times?
– Weak selling periods?
– Sold out for next 8 weeks?
– Some weekend shows sold out?
– Selling Morning Edition as daypart?
• Not so Obvious:
– Rate averaging over schedule?
– Soft major categories?
– Categories our revenue comes from?
– Too much billing from too few accounts?
– Too many small underwriters?
– Not attaching revenue to inventory?
Create A Sales Strategy
Four Guiding Principles
1. Grid Theory
2. Locomotive Theory
3. Belief System
4. Pricing Philosophy
What’s Your Total Inventory CapacityWeekly Annual Revenue
Mon-Fri Inv Inv Rate Potential5am-10am 0 - 0 - 10am-3pm 0 - 0 - 3pm-7pm 0 - 0 - 7pm-Mid 0 - 0 - Mid-5am 0 - 0 -
Totals -
Weekends6am-10am 0 - 0 - 10am-3pm 0 - 0 - 3pm-7pm 0 - 0 - 7pm-Mid 0 - 0 - Mid-5am 0 - 0 -
Totals -
Total Potential Revenue -
What’s Your Total Inventory CapacityWeekly Annual Revenue
Mon-Fri Inv Inv Rate Potential5am-10am 125 6,500 0 - 10am-3pm 125 6,500 0 - 3pm-7pm 100 5,200 0 - 7pm-Mid 80 4,160 0 - Mid-5am 85 4,420 0 -
Totals -
Weekends6am-10am 40 2,080 0 - 10am-3pm 40 2,080 0 - 3pm-7pm 32 1,664 0 - 7pm-Mid 40 2,080 0 - Mid-5am 30 1,560 0 -
Totals -
Total Potential Revenue -
What’s Your Total Inventory CapacityWeekly Annual Revenue
Mon-Fri Inv Inv Rate Potential5am-10am 125 6,500 150 975,000 10am-3pm 125 6,500 100 650,000 3pm-7pm 100 5,200 125 650,000 7pm-Mid 80 4,160 50 208,000 Mid-5am 85 4,420 5 22,100
Totals 2,505,100
Weekends6am-10am 40 2,080 125 260,000 10am-3pm 40 2,080 125 260,000 3pm-7pm 32 1,664 125 208,000 7pm-Mid 40 2,080 50 104,000 Mid-5am 30 1,560 5 7,800
Totals 839,800
Total Potential Revenue 3,344,900
Create a Sales Strategy
Three Common Themes
1. Tons of extra inventory - December & January
2. Business soft during Summer
3. Disproportionate use of drive times
Strategy Number One
Situation: lack of demand Dec/Jan
Solution:“Thank You”• December 5 - Research inventory• Available late December – Early January• Sales offering• Prior year underwriters only• Make it physical • Track daily
Strategy Number Two
Situation: Soft Summer – Rep Introduction
Solution: Summer offering
• Tiered discounts
• Plans limited to 13 weeks
• Provided incentives
Strategy Number Three
Situation: buying only Morning Edition
Solution: Retailers Kit
Four marketing legs
1. Web page
2. Station promos
3. Underwriting credits
4. Static window sticker
Monitor Sales Behavior
• Weekly Behavior– Order Entry
• Schedule inventory expectations• Rates assigned to inventory• Rate alignment with expected standards• Proper coding
– Presentations• Amount of ask (share or rate)• Negotiation outside of standards• Pending Business
Monitor Sales Behavior
• Monthly Behavior– Projections– Pacing – Average unit rate by daypart– Percent of inventory sold by daypart– Expected growth by rep experience
• Entry level• Experienced • Seasoned
Evaluate Results
• Based on your sales strategy– Met or exceed budget expectations
• Collections pacing with revenue• Average AR report
– Increase sell of spread– +/- AUR– Increase unit count per month– Average spending by account– Revenue growth by rep