𝑪𝒉𝒂𝒏𝒈𝒆 𝒐𝒇 𝑶𝒓𝒃𝒊𝒕 𝒊𝒏 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 – 𝘛𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯

We looked at the support pillars of optimizing the trade spend to start that journey with a positive note by seeing some improvements from the stagnant position we were in, thereby enhancing our belief on the process and also imbibing some confidence in us.

Now some methods and techniques to approach this trade spend optimization. Lets dive deeper from here on as now we know the temperature of the water and also have a fair idea as to what sort of species we may find down there and have prepared ourselves satisfactorily for that.

For any spend in the business there should be a strategy and reason. So its important to set

𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒊𝒄 𝒂𝒍𝒊𝒈𝒏𝒎𝒆𝒏𝒕 𝒂𝒏𝒅 𝒂𝒍𝒍𝒐𝒄𝒂𝒕𝒊𝒐𝒏 𝒄𝒓𝒊𝒕𝒆𝒓𝒊𝒂 – Questions like how much, how often, why so and is it really needed are to be asked at this stage before giving it a shape of strategy for our business. Various other parameters are also to be looked at during this process like
~ Which channel partners to work with and how to compare the cost vs performance matching of each one of them.
~ Complete portfolio of products current and of near future needs to be provided clarity in terms of cost to company and also revenue to company – as this will decide how much and when to spend criteria
~ Most importantly the tools and techniques with proper discipline imbibed in tracking each and every revenue and spend needs to be developed. Maximizing each incoming penny and minimizing each outgoing one should become the motto of the operations.

Remember a holistic approach needs to be undertaken when pushing to improve the effectiveness of trade spends. This may include multiple facets—right from selecting winning channels to partnering with, to being rigorous in on-ground execution.

Then comes one more important task and that is to categorize the spends on externally controlled and internally impacted ones. Some are clearly structural and regulation–led which will take longer to evaluate or will simply remain and cannot be worked upon a lot. However, the internal ones can be checked early to prevent unnecessary complexity. Its safe to assume here that most internal constraints & thereby expenses arrive out of the non–integration of outcomes across all functions of business.

Best way is to always take an end–to–end view of the outcomes; this prevents functions from taking isolated calls to optimize a set of local KPIs instead of focusing on the larger organizational objectives.

Will continue this journey and in case you wish to undertake it for your business do remember that we are just a click away and the name as you all know is Synergeze Consultants Private Limited .

Do write in the comments section on your take from this.

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