How do we right-size SME New Zealand?

By REACH 29th November 2023 7 min read

The winning formula that turned the corner on one mid-market business.

YOU DON’T GET a much bigger challenge than the one CEO Struan Abernethy took on when he joined what was then ReachMedia in July 2019. He was joining a business operating in a fiercely price-driven duopoly in its core product of letterbox marketing. It was suffering from an erosion of profitability, had low morale and high staff churn, and was confused on identity, direction and relevance in a rapidly evolving digital marketing landscape.
Abernethy – a business professional and CEO, with over five years as a global CEO of a sales and outsourcing company – cut his teeth in sales and service since his teenage years and into seasoned “CEO-hood”.

“I was asked by friends and family at the time what the hell was I taking on, but as my dad used to say, ‘A faint heart never won a fat turkey’.”

Fast-forward four years and the previously magenta pink-branded and solely letterbox-focused ReachMedia has evolved into REACH. The transformation of this New Zealand business is significantly more than just a coat of paint.

REACH logo transformation


REACH has brought together data and insights to help clients understand households and shopping behaviour, a rejuvenated letterbox product and digital marketing services. Now it’s a business built on its philosophy of “traditional and digital marketing working together” for maximum results to help New Zealand businesses grow – especially SMEs.
Abernethy knows business, his tenure as a leader in New Zealand and more recently at REACH, has seen him working alongside a broad range of Kiwi businesses – more than 3000 work with REACH, from SME to enterprise. But he’s hyper-aware of the rate at which businesses fail in New Zealand – from a lack of commercial prowess, strategy, external factors and cash flow. Business is hard, but what’s become apparent to Abernethy is a formula that works, one he has applied to his own challenges in business. There are clear factors at play to right-size, grow and develop brands and businesses.

Abernethy spots fundamental problems with how SMEs are run and has used this insight to evolve REACH.
His critical Top 5:

    Do you know what you stand for as a “people-force” before a “workforce”? It starts with the hire. It extends to the induction. It grows and flourishes through the alignment of value, and your business succeeds through the effective engine of human interaction and results.
    First, align your leadership group. REACH invests in this regularly, with offsites exploring areas including vulnerability and trust across the team, and introduced recognition rituals. “People grow, laugh and cry and everyone leaves the event aligned.”
    And the results speak: people engagement scores across the past 3.5 years at REACH have ranged from a “low” of 82 percent to a high of 97 percent.

    Abernethy detests the rising “tick box of diversity” in corporate culture. “I’ve always worked with a solid range of leaders in my teams, where gender diversity and cultural variety naturally existed. However, this has been borne out of good hiring for values alignment rather than making sure we have a certain number of “X-gender” on our leadership team, or a range of countries represented.”
    This might seem controversial, but Abernethy says he is advocating for diversity – under a strategic umbrella of understanding the business’s heart and soul rather than what looks good for public relations. However he appreciates the focus on getting the balance right in certain industries such as construction, as they are so male dominated.
    REACH has 17 different nationalities and a real mix of genders at leadership level and throughout the wider team. He says this was achieved by employing the best candidate for the role aligned to the business’s “good humans” value.

    “Know how to hire for culture, values and high performance, and remain open and curious about what a variety of humans can bring to the table. Also, know how to shed those who don’t fit – quickly, respectfully and effectively.”

    Your brand is not a logo. It’s who you are, what you represent and what you believe in. Brand excellence is having customers who feel that your product or service improves their life.
    Says Abernethy, “We brought in a brand strategist who accelerated our thinking. When you have a clear brand proposition, it informs everything in your organisation such as values, recruitment, language, culture and the value you bring to your customers.” The REACH brand strategy was built around harnessing the differences in market, to create distance from the competition, including their strong data-science capability and customer service rigour.

    “There was risk in this approach as we were not always the cheapest, but this positioning led to significant market share gains and a dominant position in letterbox marketing, as well as the ability to ditch the ‘price war’, which competition had driven.”

    Many New Zealand businesses fail to bring their people on the numbers journey, either because they don’t think it’s necessary or don’t have a good handle on the numbers themselves. But transparency with the key financial indicators is a game-changer for empowering your team to play a part in the revenue and profit picture. If your culture is right, everyone should feel like they have skin in the game to drive the business forward.
    “We have a ‘don’t leave money on the table’ value at REACH. This isn’t just about salespeople selling more marketing services, this extends right through to finance, developers and beyond – especially our clients,” says Abernethy. REACH’s focus on growing New Zealand businesses is through a lens of ensuring clients don’t “leave money on the table” in the ways they design their marketing and campaigns.
    Whether direct or indirect, everyone at REACH knows they can impact success by the ways they build relationships, curiosity and diligence in diving into the details on numbers and costs. Everyone plays a part.

    “Strength, transparency and alignment enabled us to break the price-war game we were in with a key competitor at the time, by shifting from a price-sell to a value-sell. A massive achievement for REACH in terms of how customers viewed us, and the value we bring to their businesses.”

    Making decisions based on assumptions is often the easier, faster path. But it’s rarely the path that shows you the gold nuggets of insight. We all have assumptions about our best customers – what they think of us, what they need – and we also have assumptions about those we didn’t convert or that left us. Often those opinions and assumptions serve ego and a fear of failure, rather than fuelling us to build better businesses and better products. Through formal research or casual chats and online surveys, gather insights (good, bad and ugly) from customers and non-conversions. Wherever you can, go in with an open mind and neutral curiosity and you will see it serve you no end. Find a way to gather feedback on a regular basis and use it to help shape direction.

Abernethy is excited about the journey ahead.

“Transformation is never finished, and transformational leadership never stops. We should always challenge the status quo. We have come a long way, and I’m proud that investment in leadership, culture and brand has delivered a new business with a stronger market position.

I’d love to see other businesses across New Zealand realising sustained growth by adopting some of the key factors we’ve used at REACH.”

Subscribe to REACH