CXOs have inevitably had to turn to traditional EBITDA optimization methods given today’s market – cutting overhead expenses, streamlining and optimizing procurement partnerships and automating manual tasks by way of technology – just to name a few. However, there are supplemental tactics (below) to consider employing when aiming to improve margins.
These overarching themes were informed by first-hand accounts and recommendations from C-suite leaders recently surveyed by PE-CXO.
Read more: Tips for Cutting Costs in Private Equity-Backed Companies
Maintain Pricing and Implement Product Enhancements to Boost Sales
“To drive better margin per transaction/customer, consider implementing timely product enhancements to enable upsell opportunities to existing customers“
— Anonymous sales leader
While increasing prices may seem appealing, maintaining prices is crucial to customer retention. Instead, explore how you can minimize discount and bundling programs to improve EBITDA. Weigh updating your structure to include subscription services, or aligning your sales strategy to a higher margin service or product.
Additionally, ensure to assess which products and services that are proving to be unprofitable and re-allocate that spend to product development initiatives to better align with customer and market needs.
Read also: Boosting EBITDA Through Top-Line Growth...