The Situation
A marketing agency with 20 employees was serving around 30 clients and generating solid revenue. Despite this growth, the agency lacked visibility into its gross margins on a client by client basis. Without that clarity, leadership had no way of knowing which clients were truly profitable and which ones were quietly draining resources and team capacity.
Key Actions Taken
- Broke down gross margins for every individual client account
- Set a minimum 30% gross margin target across all accounts
- Implemented employee utilization tracking to measure how efficiently team time was being used
- Identified workflow inefficiencies and areas to reduce unnecessary costs
The Results
- Immediate boost in overall profitability
- Full transparency into client by client financial performance
- Clear visibility into team performance and utilization
- Identified specific opportunities for continued improvement
- Agency remains a client today, citing strong satisfaction with the results