Comprehensive
service from a media company
Media companies have over
the years expanded their product selection with various system and expert
services outside traditional media. For the customers of Alma Media, this
centralisation of services provides simplicity and reliability.
“Alma
has been running service business since the early 2000s. We started to develop
our solution services in the real estate business. It was a natural choice as
newspaper advertising has always been one of the cornerstones of the real
estate business. Our staff was already familiar with it, and we had the
clientele,” says Raimo Mäkilä,
Senior Vice President, head of Alma Media Marketplaces.
A
homes and interiors service, Etuovi.com was the first step towards bigger
solutions at Marketplaces. Since then the business has been broadened to cover
services related to recruitment, car sales and car import.
In
the real estate business and car sales, Alma’s services now cover the
customer’s entire business from order management systems to stock control and
sales ads. Alma’s recruitment solution also cover a large scale of services: HR
consultation, recruitment tools as well as guidance on successful recruitment
and how to be an attractive employer.
New
kinds of earnings
But why
does a media company want to expand its activities so far from its original
core operations?
“As
the use of traditional media decreases, we have to find new earnings models. The
service business is an organic choice because our staff is already familiar
with the everyday life of our customers in a number of fields. In their
businesses, our customers can only exploit the traditional media to a certain
extent, which made us think how we could offer them the best possible solution
of services,” says Riikka Wulff,
Managing Director of Alma Mediapartners.
Mäkilä
and Wulff both say that customer feedback has been positive and encouraging. Being
able to outsource the majority of services or even all of them to the same
contact person and service provider is already a relief to many companies. And
when all the services can be obtained from the same provider, they are also
compatible.
“We
are able to offer personal, tailored services and be flexible when the customer
needs it. We listen to our customers carefully and process their requests
swiftly without unnecessary complications,” Wulff says.
At
the same time, the big company behind all this provides stability and
reliability to the customers.
Profitable
business
As early
as in the 1980s there was talk about growing less sensitive to economic
fluctuations in the media business, Raimo Mäkilä recalls. As regards the media
itself, this has not been achieved yet, but expanding the service portfolio may
be the solution.
“Service
business creates stability in our sales and customer relations. Sales of
advertising is very cyclical in nature, and there is not much we can do about
it. During economic boom, companies invest in marketing but cut back on it as
soon as recession hits. But people are more committed to systems that they have
used for years: they may consider their purchase longer than the use of media,
but they don’t give them up so easily when times are bad,” Mäkilä says.
It has
also been noted at Alma that those customers who buy a variety of services from
the same provider also advertise more frequently. In other words, an extensive
service portfolio does create competitive edge. When competing for customers in
the service business, however, it makes no difference whether the service
provider has background in media or not.
“I
think it’s self-evident that we also offer other services for our media
customers. And our customers haven’t questioned our references either – our contact
people are so familiar with various businesses through our media partnerships,”
Wulff says.
From
media into a service
In addition to the services at Marketplaces, Alma has purposefully implemented a corporate strategy according to which the digital service business pursues profitable growth next to the traditional print media business. Another digital service is Alma’s Kauppalehti Tietopalvelut that provides comprehensive information about properties, selling prices and residents, while a different service is provided by Alma Manu, a print and delivery service that has developed a number of new business ideas from shopping bags to parcel services.
Read more:
Alma Media’s brands and business areas
Alma Media’s strategy
Date: 4 February 2016
Theme: Alma solutions
Text: Linda Pynnönen