Determining ROI for a Channel vs Direct Go-to-Market
To combat declining carrier commissions, Alexander Group evaluated ROI from multiple sales channels and developed strategic initiatives for growth
Situation:
A health insurance third party administrator was uncertain of all investments and revenue streams driving their ROI across their direct and GA routes to market.
Challenge:
The client looked to understand all ROI inputs for each channel by aggregating data points including historical revenue by channel, sales and support resourcing corresponding time allocation and additional investments. They needed to establish strategic actions as a result of the findings to allocate resources among channels to maximize profitability.
Solution:
Alexander Group conducted a time study to analyze how internal sales team were spending time across each of the channels. Alexander Group developed and validated a comprehensive model based on historical data to identify the current ROI from each channel; and leveraged findings to determine the appropriate go forward strategies.
Benefit:
The client determined that scale, realized through the GA channel, was more profitable on an aggregate level. They identified areas for incremental investment to test direct strategy and drive higher incremental ROI.
