Our Entertainment & Media client was clear on one thing: the potential to accelerate their growth was huge, if only they could agree on and prioritise the right core initiatives. The challenge was that different KPIs gave inconsistent pictures of the same issue, with executives split over which picture/KPI to trust. In addition they were working with complex projections but the reliability of the estimates involved was unclear, which undermined confidence in the results, once again splitting executives.
Our client had a typically complex pricing structure reflecting very different business models, including a paid membership programme, an online offering, customer segment discounts, mid-week discounts and several sponsored initiatives. Although high-level profitability figures had been estimated, the incrementality of these offerings was unknown and as a result the true impact on P&L was unclear.
We established accurate profitability and incrementality figures for several of the offerings, and provided robust, bounded estimates where exact figures remained elusive. We mapped key assumptions and provided projections based on different scenarios, allowing options to be compared effectively. Finally we integrated our figures and models, and the broader customer strategy, into a single conceptual framework, providing a common platform for discussion.