What’s Missing On Your 2023 Budget Checklist?
Updated: Jan 19
This weekly column was originally published on RadioInk.com on October 24th, 2022.
Budget planning is underway, and sales management must consider a broad set of contributors and their impact on revenue. Factors include demand trends based on the product’s value, customer revenue contribution, NTR (events), digital, and podcasting.
Tune Up Your Revenue Engine
Where do you start? Your budget goals will set expectations in performance and be the go-to benchmarks for measuring top-line growth. Revenue targets and your purpose-driven management decisions must be in alignment. You should have a sales management “To-Do List” for 2023 underway; here are several suggestions as you put the final touches on the list.
Inventory Management and Pricing
Are your station capacity numbers updated based on any programming changes (local vs. syndication and PXP periods, for example)? What is your starting supply?
How much political demand and client attrition will you need to replace?
Will your ratings impact transactional business for long-term agreements next year? Do not miss opportunities to raise rates.
What will competitor programming changes do to adjust buying patterns and demand for your stations?
What existing sales tools and systems are underutilized or need an overhaul to support better management decisions and forecasting?
Strategic Sales Questions
What customer categories will grow, and what segments will lag in revenue contribution? Look at your top 20 categories for 2022 for changes in their business environment and impact on your formats and assets.
What on-site events are new to your market? How can you get involved? Are adequate sales efforts planned before decision timetables to capture sponsorships dollars?
What new plans are needed to grow digital revenues? Is your bundle strategy working, or does it need refreshing?
Please do not shy away from added billing with the existing customers by adding one or two more assets in 2023 to grow their business and your sales numbers.
What customer categories and prospects will fare better in a recession based on higher-end customers who can still purchase in an economic downturn?
How are you educating the market? Have you identified a content creator for your sales department or a content manager to work on sales marketing and inbound prospecting strategies?
Your Revenue Team
Sales staffs drive specific demand by asset class, maximize client relationships and communicate different value narratives to the market. What investment are you making in the sales team next year?
Is your compensation strategy and incentives on target?
Look at retention and support opportunities to strengthen the stability of your team.
Recruit now for what you will need six months in the future.
The structure and processes you implement for 2023 should connect your revenue management strategies with your sales effort for optimal results. We all know that success comes when preparation meets opportunity. Next year can be a positive revenue growth year if your list is complete and you take the proper steps to build sales momentum.
Thank you for reading this article, and please pass it along to your colleagues.
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About The Author:
Alec Drake openly shares revenue management strategies and sales improvement ideas in the "Sales Success Library" at Alecdrake.com. He is a regular contributor to Radio Ink Magazine, where he leverages four decades of experience to write about sales and management. Alec is the founder of The Radio Invigoration Project (T.R.I.P.), a support initiative for local radio sales and promotion staff.
Drake Media Group, LLC retains exclusive rights to any original content in articles written by Alec Drake or published on any third-party platforms and featured in any podcast.