How to Attract, Retain and Grow a Profitable Client Base at Your Agency

#INBOUND14
the
proﬁtable
agency
how
to
a*ract,
retain
and
grow

a
proﬁtable
client
base
sept.
16,
2014
presented
by

paul
roetzer
(@paulroetzer)

CEO
|
PR
20/20

of
marketers
think
markeEng
has

changed
more
in
the
past
two

years
than
the
past
50

!
source:
Adobe
Digital
Distress
76%
@paulroetzer www.pr2020.com#inbound14

the
consumer
is
the
true
change
catalyst

90% of
daily
media
interac;ons

are
screen
based
source:
Google,
The
New
MulE-‐Screen
World
@paulroetzer

B2B
buyers
may
be

up
to
90%
through
their
journey

before
contacEng
a
vendor.

!
source:
Forrester
image:
Jayneandd

Source:
Google
Every
trackable
consumer
acEon
creates
a
data
point,
and

every
data
point
tells
a
piece
of
the
customer's
story

Source:
Chiefmartech.com
the
customer
journey
does
not
follow

a
linear
path
deﬁned
by
marketers

Deﬁne
FoundaEon
Projects
blog
posts

podcasts

website

video

email

webinars

mobile
apps
tailored
markeEng

through
a
deep

understanding
of

buyer
persona
needs

+
the
ability
to
deliver

personalized

messages
Image:
HubSpot
we
have
entered
the
age

content,
context
and
the
customer
experience

Deﬁne
FoundaEon
Projects
create
more
value,
for
more
people,
more
oDen,

so
when
it’s
Eme
to
choose,

they
choose
you
new marketing imperative

what’s
holding
businesses
back
from

achieving
performance
poten;al?

image:
Xurxo
Marcnez
talent
gap
+
tech
gap
+
strategy
gap
=
PERFORMANCE
gap

of
marketers
say
their

lack
of
skills
is
impacEng

revenue
in
some
way

!
source:
2012
MarkeEng
Skills
Gap
Report
75%

of
companies
lack
necessary

digital
skills
in
key
areas
of
social

media,
mobile,
internal
social

networks,
process
automaEon,

and
performance
monitoring
and

analysis.

!
source:
Capgemini
ConsulEng
90%

a
talent
war
has
begun
for
tech-‐savvy,
hybrid
marketers

capable
of
building,
managing
and
execu/ng

fully
integrated
campaigns
that
produce
results

agile,
adept
at
advanced

marke;ng
tech,
and

experts
in
inbound

strategy

how
do
we

ﬁnd
the
unicorns?
@paulroetzer

only
1
of
the
top
10

markeEng
programs
in
the
U.S.

has
a
required
undergraduate

digital
marke;ng
course
source:
U.S.
News
&
World
Reportimage:
IUB
Facebook

businesses
must
take
the
ini;a;ve
to

mold
their
own
modern marketers

by
2017,
the
CMO
will
spend
more
on
IT
than
the
CIO.

!
source:
Gartner
IT
=
CIO
CMO

6
classes,
43
categories,
947
companies

ExactTarget
IPO
(Mar
'12)
Eloqua
IPO
(Aug
'12)
ExactTarget
buys
Pardot
(Oct
'12)
HubSpot
raises
(Nov
'12)
Oracle
buys
Eloqua
(Dec
'12)
Marketo
IPO
(May
'13)
SF
buys
ExactTarget
(Jun
'13)
0 5 10 15 20 25
$161.5M
$92
M
$95.5M
$100
M
$871
M
$79
M
$2.5
B
venture
funding,
mergers,
acquisiEons
and
IPOs
fuel

the
martech
industry


analyEcs

automaEon

coding

content

digital
ads

email

mobile

public
relaEons

search

social

tech

websource:
AlEmeter’s
The
Converged
Media
ImperaEve
the
new
marke;ng
mix

generate
leads
86%
85% convert
sales
build
brand
46%
51% increase
loyalty
brand
leads
sales
loyalty
Source:
PR
20/20’s
2014
MarkeAng
Score
Report
high-‐priority
goals
@paulroetzer www.pr2020.com

sample
KPIs
website
traﬃc

social
reach

subscribers
lead
volume

lead
quality
score
lead-‐to-‐sale
conversion
rates

cost
of
customer
acquisi;on
(COCA)
customer
life;me
value
(CLV)

customer
reten;on
rates

recurring
revenue
brand
leads
sales
loyalty

source:
Accenture’s
Turbulence
for
the
CMO
the
markeEng
industry
is
moving
too
fast

to
internalize
everything

Donovan
Neale-‐May,

ExecuEve
Director,
CMO
Council
“There’s
an
underlying

level
of
frustra;on
among

senior
corporate
marketers

worldwide
when
it
comes

to
agency
contribu;ons
to

business
value
creaEon,

strategic
thinking,
and

digital
markeEng

development.”

source:
CMO
Council
(2012)

of
senior
marketers
believe

tradi;onal
ad
agencies
are
doing

a
good
job
of
evolving
and

extending
their
service

capabiliEes
in
the
digital
age.

!
source:
The
Chief
MarkeAng
(CMO)
Council

report
More
Gain,
Less
Strain.
9%

where
do

the
other
91%

turn
for
help?

growth
is
the
easy
part.

retaining
it,
and
making
it
proﬁtable,

are
the
real
challenges
for
agencies.

a
cauEonary
tale
of
churn

Deﬁne
FoundaEon
ProjectsPR
20/20
growth
(2009)
15
new
campaign
clients

!
$195,000
in
2009
revenue

!
$503,000
in
2010
forecasts

0
clients
remain
average
relaAonship
lasted
12
months

49%
of
marketers
report
they
will

consolidate
or
change
agencies

over
the
next
12
months.

Another
15%
aren’t
sure.

!
source:
CMO
Council,
2012
study
64%

Deﬁne
FoundaEon
Projectschurn
factors
ﬁnancial
instability

focus
on
outputs,
not
outcomes

over
promise,
under
deliver

siloed
services

stagnant
business
model

stretched
too
thin

talent
turnover

unbalanced
porqolio

weak
processes
agency
side

Define
FoundaEon
Projectschurn
factors
client
side
conservaEve
culture/budgets

financial
instability

lack
of
vision

low
quality
product/service

markeEng
tech
deficiencies

personnel
weaknesses

poor
management

unrealisEc
expectaEons

weak
foundaEon

work
with
agency
partners
that

care
as
much
about

performance
and
success

as
you
do

15
ways
to

maximize
agency
proﬁts

Source:
HubSpot
1)
prove
performance

2)
develop
scalable
processes
and
services.

3)
reduce
business
development
Eme.

(remove
despera/on)
4)
achieve
ﬁnancial
stability.

Deﬁne
FoundaEon
Projects
5)
know
when
to
say
NO.
commit
to
clients
and

prospects
who
value
your

people,
;me
and
energy

!
watch
for
red
ﬂags

!
trust
your
ins;nct

!
be
willing
to
walk
away

6)
get
paid
for
planning.

2006
2008
2010
2014
7)
establish
value-‐based
pricing.
@paulroetzer

8)
build
brand
and
reputaEon.

image:
David
Guo
Senior
Pro
@
$75,000
=
$32/hour

vs.

Junior
Pro
@
$45,000
=
$19/hour
costs
40%
less
for
junior
pro
services
9)
understand
service-‐delivery
costs.

10)
arract
and
nurture
entry-‐level
talent.

11)
move
to
campaign-‐based
contracts.

image:
Xurxo
Marcnez
12)
ﬁll
talent,
tech
and
strategy
gaps.

(eliminate
waste)
13)
track
;me
and
eﬃciency.

14)
focus
on
reten;on.

Speaking

5%
Publishing

5%
Events

10%
Sofware

10%
Services

70%
15)
diversify
revenue.

paul
roetzer,
@paulroetzer

!
CEO
|
PR
20/20

author
|
The
MarkeAng
Performance
Blueprint
(Wiley,

2014)
&
The
MarkeAng
Agency
Blueprint
(Wiley,
2012)

creator
|
MarkeEng
Score
&
MarkeEng
Agency
Insider
www.pr2020.com

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