RSW/US 2015 Webinar Slide Deck Frustration Breeds Opportunity
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This document summarizes the key findings of a 2015 new year outlook survey that revealed tensions between marketers and agencies. It showed general optimism but also strategic concerns as marketers felt agencies lacked direction, understanding of their business, and ability to harness data and technology. Agencies felt marketers did not provide strategic input and lacked commitment. The document discusses opportunities for agencies to address gaps in areas like technology, data, strategy, and marketing fundamentals to strengthen partnerships with marketers and drive business success. It emphasizes the need for agencies to actively address clients' needs through leadership, strategic planning, and business development.
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RSW/US 2015 Webinar Slide Deck Frustration Breeds Opportunity
- 2. 2015 NEW YEAR OUTLOOK SURVEY: A TALE OF TENSION
- 3. 2015 NEW YEAR OUTLOOK SURVEY: A TALE OF TENSION
- 4. • Present input from Marketers and Agencies • Exhibit frustration on both sides • Discuss opportunity/opportunities that concerns represent • Call for solution/problem solving 2015 NEW YEAR OUTLOOK SURVEY: WEBINAR OBJECTIVES
- 6. STATE OF THE INDUSTRY • General Optimism • Yellow Flags – particularly for Agencies • Strategic Leadership • Data and Technology
- 7. STATE OF THE INDUSTRY: GENERAL OPTIMISM - MARKETERS
- 8. STATE OF THE INDUSTRY: GENERAL OPTIMISM - MARKETERS
- 9. STATE OF THE INDUSTRY: GENERAL OPTIMISM - AGENCIES
- 10. STATE OF THE INDUSTRY: GENERAL OPTIMISM - AGENCIES
- 11. STATE OF THE INDUSTRY: CHALLENGES AHEAD FOR AGENCIES
- 12. STATE OF THE INDUSTRY: INCREASED COMPETITION FOR AGENCIES 56% 63%
- 13. Chart on competition STATE OF THE INDUSTRY: INCREASED COMPETITION FOR AGENCIES
- 14. STATE OF THE INDUSTRY: AGENCY/MARKETER PARTNERSHIPS SEEM WEAKER
- 15. STATE OF THE INDUSTRY: AGENCIES FEEL SQUEEZE ON BILLINGS
- 17. STATE OF THE INDUSTRY: FRUSTRATED LEADERSHIP VOID?
- 18. STATE OF THE INDUSTRY: FRUSTRATED LEADERSHIP VOID? Both Agencies and Marketers have these concerns – about each other: - “Chasing the next shiny object” - Weak on strategic direction – and strategic talent - Unwilling to take risk and innovate - Placing too much emphasis on social media - Failing to harness data appropriately.
- 19. January 16, 2015: Tension Mounts Between Marketers and Agencies….
- 20. Marketers Say Agencies are : • Complacent • Failing to understand a client’s business drivers • Putting less emphasis on market research • Lacking focus • Not understanding our challenges • Taking an “Out of the box” approach – not understanding the customer • Lacking direction • Clueless • Arrogant STATE OF THE INDUSTRY: FRUSTRATED STRATEGIC CONCERNS
- 21. Agencies Lament Marketers: • Unwilling to make brave/bold moves • Settling for short-term fixes • Not providing direction or input • Lack a strategic approach • Fail to focus on big ideas • Lack commitment, loyalty • Suffer from short tenure – especially CMO’s STATE OF THE INDUSTRY: FRUSTRATED STRATEGIC CONCERNS
- 23. January 16, 2015: Tension Mounts Between Marketers and Agencies Over Data, Tech and Social
- 24. DATA AND TECHNOLOGY AREAS OF CONCERN: Deliverables for digital and social media? Consisten cy in Brand Strategy How to harness “Big Data”?
- 25. Marketers see: • Lack of compelling post-analysis on social and digital • Strategic disconnect across media and platforms. • Inability to use data appropriately. • Tendency to sell technology rather than strategic solutions. DATA AND TECHNOLOGY: UNHARNESSED POTENTIAL Agencies observe: • Lack of understanding in what to expect from digital and social • Do not understand how to incorporate new technology strategically. • Desire to prove ROI, without setting benchmarks. • Devaluation of creative in relation to data.
- 26. DATA AND TECHNOLOGY LOOKING FOR DIRECTION
- 28. OPPORTUNITY OUT OF FRUSTRATION
- 29. OPPORTUNITY OUT OF FRUSTRATION SURVIVAL OF THE MOST PROACTIVE
- 30. OPPORTUNITY OUT OF FRUSTRATION SURVIVAL OF THE MOST PROACTIVE
- 31. OPPORTUNITY OUT OF FRUSTRATION HONESTY WINS
- 32. OPPORTUNITY OUT OF FRUSTRATION HONESTY WINS
- 33. OPPORTUNITY OUT OF FRUSTRATION HOW WILL YOU FILL THE GAPS?
- 34. OPPORTUNITY OUT OF FRUSTRATION HOW WILL YOU FILL THE GAPS?
- 35. OPPORTUNITY OUT OF FRUSTRATION HOW WILL YOU FILL THE GAPS?
- 36. OPPORTUNITY OUT OF FRUSTRATION HOW WILL YOU FILL THE GAPS?
- 38. • Grasping the real potential of new technologies • Meaningful data management and analysis • Strategy • Focus on marketing fundamentals OPPORTUNITY OUT OF FRUSTRATION MARKETERS SEE GAPS
- 39. • Selling the technology and not the solution. • Not prepared for fraud associated with technology • Right technology for the demographics • Lack of experience • Digital • Social • Inability to measure/prove effectiveness OPPORTUNITY OUT OF FRUSTRATION MARKETERS SEE GAPS - TECHNOLOGY
- 40. OPPORTUNITY OUT OF FRUSTRATION MARKETERS SEE GAPS - TECHNOLOGY
- 41. • Highly associated with technology gaps • Post-analysis lacking • Failure to determine ROI • Dots not connected between data and marketing strategy. OPPORTUNITY OUT OF FRUSTRATION MARKETERS SEE GAPS - DATA
- 42. TECHNOLOGY AND DATA GAP MANAGE THE EVOLUTION • The basics: • Right technology for the audience. • Meaningful metrics • How to support new services? • Does this mean new positioning?
- 43. • Lack of direction • Not in a position to lead clients • Neither digital nor social media are being strategically integrated. OPPORTUNITY OUT OF FRUSTRATION MARKETERS SEE GAPS - STRATEGY
- 44. STRATEGY GAP BE AN ALIGNED PARTNER Where does your firm fit? • Strategy/Leadership… • Tactical/Projects/ Assignments… Whatever the fit, be aligned.
- 45. OPPORTUNITY OUT OF FRUSTRATION MARKETERS SEE GAPS – THE BASICS • Lack of good ideas • Absence of creative talent • Mistakes in execution • Poor service, not understanding our challenges • Inability to innovate in a meaningful way • Unfamiliar with industry specific marketing techniques • Less emphasis on Market Research • Reaching correct audiences through the clutter • Lack of true expertise
- 46. OPPORTUNITY OUT OF FRUSTRATION MARKETERS SEE GAPS - THE OPPORTUNITY: CLOSE THEM!
- 47. OPPORTUNITY OUT OF FRUSTRATION MARKETERS SEE GAPS - THE OPPORTUNITY: CLOSE THEM!
- 49. FRUSTRATION BREEDS OPPORTUNITY Build the Plan and THRIVE!
- 50. FRUSTRATION BREEDS OPPORTUNITY Build the Plan and THRIVE!
- 51. BUILD THE PLAN AND THRIVE! Retention – Keep current clients close.
- 52. Agencies worry: • “Lack of loyalty” • Piece-mealing out work • Growing influence of procurement • In-house agencies appearing BUILD THE PLAN AND THRIVE! Retention – Show current clients the love!
- 53. BUILD THE PLAN AND THRIVE! Retention – Show current clients the love!
- 54. BUILD THE PLAN AND THRIVE! Retention – Become indispensable!
- 55. BUILD THE PLAN AND THRIVE! Retention – Become indispensable!
- 56. BUILD THE PLAN AND THRIVE! Retention – Become indispensable!
- 57. It’s about more than the grade: • Build on successes • Make needed improvements • Identify gaps – get a head start on them! • Foresee opportunity – be prepared • Future staffing/partnership needs BUILD THE PLAN AND THRIVE! Retention – Ask your clients to grade you
- 58. BUILD THE PLAN AND THRIVE! Business Development
- 59. BUILD THE PLAN AND THRIVE! Business Development Elements common to success: • Methodology • A marketing plan and process for your business. • Proactive • Has to be more than inbound • Consistent • Assure accountability
- 60. BUILD THE PLAN AND THRIVE! Business Development
- 61. BUILD THE PLAN AND THRIVE! Business Development Authenticity – Is Your Team Bred For Agency New Business? Monday, December 29, 2014
- 63. KEY POINTS Frustration means --- Marketers need help!
- 64. KEY POINTS And, be a leader willing to wear several hats. Your clients need: • Visionaries • Strategic partners • Masters in implementation Marketers need help- -- Step forward as a leader!
- 65. KEY POINTS You need a plan ---- Build. Enhance. Stick to It!
- 67. ACTION STEPS Dialog – Join us!
- 68. ACTION STEPS Stay Connected! Contact: Mark Sneider --- 513-559-3101 mark@rswus.com
Hinweis der Redaktion
- Thanks for attending today’s webinar. My name is. And we are. #rswus or #agencynewbusiness
- The source of information we will cover today comes from our 2015 New Year Outlook Survey. While we are now two months into 2015, the unprecedented pace of change in our industry is the active dynamic driving the feedback we received. This is certain to continue. Doing business as an advertising and marketing communications agency has always required keeping one eye on the day-to-day deadlines clients expect their agencies to hit. At the same time, to stay relevant tomorrow - and next year, and the next, the other eye HAS to be on what is happening in the industry, and agencies constantly need to be thinking about how to prepare for this.
- The 2015 New Year Outlook Survey was rich in feedback on topics that ranged from expectations around the Congressional shift in party power and the potential impact on our industry to Marketer and Agency issues in their day-to-day work together to experience in agency searches. In today’s webinar, we are going to focus on the Marketer and Agency issues in working together. And, we heard a LOT of them, so… let’s be off!
- With that, here are the objectives of today’s Webinar. Over the next (50) minutes: I will show how Marketers and Agencies are looking at the year ahead. I’ll also show that both “sides” are feeling frustration with the other. We’ll dive into some of the sources of this frustration. The frustration is not all bad, and I’ll point out just some of the opportunities that Marketers’ concerns can represent for your agency. I also want to make a call for solutions and problem solving. This isn’t specifically an “individual effort”. Sufficient questions seem to exist in some key areas that some collaborative problem solving from the agency “side” of the industry could foster an environment that creates greater success for all. One means to this is a forum we have opened on LinkedIn. I’ll come back to that at the end of the Webinar. Let’s get underway.
- I’ll cover four key areas in the discussion of the “State of the Industry” based on Marketer and Agency Feedback. The input comes from 123 senior level Marketers and 158 Agencies executives. These include, General Optimism, expressed by both Marketers and Agencies. The optimism is encouraging, particularly following the tough years that ensued the Great Recession, but I do see caution flags, particularly for agencies. A core issue is leadership in the industry. Strategic leadership. You’ll see how both Marketers and Agencies are seeking more from the other. And among the areas of some concern is the rapid emergence and growing emphasis on data and technology. The growth is not necessarily the concern, but again, I’ll show expectations that both Marketers and Agencies have of the other to have a “firmer grasp” on what data and technology can deliver.
- So starting on the optimistic outlook, we see that Marketer confidence has grown steadily since 2013, with close to 90% of all marketers who responded feeling like they are likely to either invest “somewhat” or “heavily” invest in their business infrastructure (people, equipment, etc.) in 2015. This is the second consecutive year where a significant jump in marketer confidence has driven a strong desire to spend.
- As for marketing spending specifically, a call for optimism still exists. However, marketers anticipate increases will be relatively conservative.
- Agency confidence in the industry actually took a significant leap in last year’s survey, and it remains strong in 2015. 95% of agencies responding state they will likely increase their investments in the marketing, sales, and people parts of their business either “somewhat” or “heavily”.
- Agencies are also exhibiting confidence as they anticipate increased marketing spending by their clients. Of note, agencies express what appears to be higher expectations of increased marketing spending than the marketing respondents expressed.
- So, from a growth and spending outlook, the industry certainly seems to have good energy and momentum. However, the trip ahead for agencies could be more like “riding the rapids” than smooth sailing.
- When we asked Marketers how they have been trending on consolidations, 56% percent said they had been doing so, and 63% indicated they anticipated continued consolidation of agencies supporting their brands.
- With marketers looking at the future this way, any sense you have that the industry is becoming more competitive is…. REAL! If it’s any comfort, you are far from being alone in this. 79% of agency respondents indicated they feel the environment is much more competitive. This compares to 68% expressing this just two years ago.
- In addition to consolidation of agency resources and competition in the industry, other dynamics that are causing stress and frustration for agencies are trends that seem to threaten their position as long-range strategic partners.
- Many of these dynamic have roots in cost-containment initiatives that pressure marketers in their own organizations. So, there’s a double punch here. Beyond feeling devalued as a strategic partner, agencies see growth potential for their billings and revenues squeezed, if not outright cut.
- For some – or many of you – the figures and dynamics we have just talked through may not be all that surprising. But, I needed to lay the groundwork for the rest of the story. As I touch on frustrations in this section you will see that they are pretty much coming from “each side” of the industry – from both Marketers and Agencies. You’ll see some of these areas of concern again as I dive a bit deeper in the next section and hone in on the gaps that Marketers are perceiving and some approaches to filling them. So, looking at the dynamics from both sides…. ….on the one hand we see an industry that is optimistic about real potential for growth, one that is wrestling with dynamics common to so many industries – consolidation and increasing competition – and then, we move into a reality where… …It’s unclear who is leading – and each “side”, Marketers and Agencies – expecting more leadership out of the other.
- Marketers expressed that they see agencies too often “Chasing the next shiny object”. Their responses reveal a concern that agencies have become soft in strategic direction and even question the strength/presence ofstrategic talent. Marketers also see agencies as over-emphasizing social media, as well as talking very promising talk about the availability and power of data. However, they do not see agencies using data appropriately or effectively. Interestingly, Agencies expressed like concerns about their marketing counterparts. This is an obvious statement, but strong strategic leadership is vital to the advertising and marketing industry. And we’ll come back to this again in the next section.
- Adweek probably nailed it best --- Well, maybe the tension isn’t QUITE this in your face, but we asked both Marketers and Agencies what troubling trends they were seeing in each other. I knew discontent exists, but the scope and level that appeared in the responses were surprisingly intense. Again, in this section, we are sharing issues from both Marketers and Agencies. We’ll touch on some of these again as we discuss opportunities.
- In response to the question, What is the MOST TROUBLING TREND you are seeing today, both Marketers and Agencies pointed to a vacuum in strategic leadership – with each looking to the other to step up. Amongst Marketer’s comments were things like: - Complacency - Lack of understanding a client’s business drivers - Less emphasis on market research - Lack of focus - Not understanding our challenges - Lacking a complete understanding of our business needs - “Off the shelf” approach – not understanding the customer - Lack of direction - Most of them are clueless - Arrogance
- And, agencies say much the same about Marketers --- Their laments include marketers: - Are unwillingness to be brave - Seek short term fixes over long term commitment to branding - Provide insufficient input. There’s a lack of Understanding. Lack of Planning. Lack of Commitment to doing great work. - Lack of a strategic approach - Fail to focus on bigger ideas that move business - Lack commitment and Loyalty - Turn over CMO’s too quickly.
- Back to Adweek – here’s how their headline wrapped up…. … “over Data Tech and Social”. And these are indeed major issues. We’ll come back to them as we talk about opportunities.
- Frustration associated with data and technology fell into three key “buckets”. These included: - Murkiness around deliverables for digital and social media - Integrating brand strategy consistently across traditional and digital channels - Uncertainty about how best to harness “big data”
- Here are just a few of the verbatims from Marketers and Agencies when it comes to this subject. Marketers express desire: For effective post analysis on social and digital programs To see more strategic integration across platforms, citing “silos of separation” as preventing this. Ability to use data appropriately and understanding of the metrics For emphasis on the solution rather than the technology Agencies see: Marketers perceiving digital and social as less expensive avenues to brand building (and substitutes for traditional channels) Marketers lacking understanding of how to effectively incorporate new digital technologies in their overall marketing strategies. Compulsion to relate each marketing dollar to sales/ROI Marketers prioritizing data over creative. - Again, you see each side looking for answers.
- And, they are really looking to EACH OTHER leadership…. Agencies want clear direction with long-range vision for their clients brands. They want to see leadership commitment to the long haul associated with sustained brand building. Marketers want agencies to lead with strategic solutions for their marketing challenges. The feel they are being “sold” the latest technologies on their bases to generate data, rather than the RIGHT means to reach and motivate an audience.
- And data and technology is just ONE area that spells opportunity. We’ll be back to it again shortly, but…
- ….let’s take a minute to look at the big picture again. Some of my comments in this section speak comparatively broadly to promote thinking about the potential in front of your firms and your options for pursuing it. So, as I talk about opportunities, contemplate what these imply in your situation, and how your firm can benefit from the opportunities out there. The need for marketers to connect with their audiences is as big as ever. Given the continuous fragmentation of media and means to reach these audiences, this will only become increasingly complicated. Marketers NEED partners, smart, courageous experts with whom they can share leadership and stewardship of their brands. The good news is the opportunity is there. The rest of the news is that it takes hard work.
- The opportunities if they aren’t already clear, include: Pursuing marketers who are dissatisfied. This may sound – or be - the most Darwinian statement as well as the most obvious, but Marketers that aren’t satisfied are looking for new agencies. The issue is how are you willing to engage them? If they offer a project, is that acceptable, or will you consider only AOR opportunities? This is your question to answer, but you have to plan for it.
- And, I’m confident you know this, but it deserves emphasis. Being proactive is not limited to pursuing new business. We want to talk about securing your current client base as well as building up on that foundation.
- A big frustration that Marketers cite is hearing agencies claim they are full service and can handle all the Marketers’ needs, only to learn the agency has overpromised.
- Don’t let this be you!
- But… Marketers identified gaps. You heard “their side” on several of them a few minutes ago. And, we’ll hear more about some of them shortly. So, just take the example of the growing potential data can offer – and the abundance of Marketers (and agencies!) observing absence of ability to harness that potential. Let’s play this out and imagine a client asks about the capability of your firm can offer in collecting and analyzing data, and drawing actionable insights from it. Are you really staffed with the right data scientists and analysts to address a client’s needs? If not, how do you incorporate that expertise and talent? Add to internal staff? Forge a strategic alliance with a firm that does possess the talent?
- If the former, how does your firm evolve itself in positioning? How will you communicate this?
- If the latter, how do you insure to the Marketer/client that this is a genuine, legitimate, effectively-working partnership?
- It has to be real. You have to show concrete examples of how your partnerships have driven success for your clients. Again, only YOU can answer these questions – and more associated with adding capabilities. But you have to plan for this.
- So, in a way, the cart may be before the horse a bit in asking HOW you are going to fill gaps, and how you will POSITION yourself in relation to your clients’ needs, but these issues need to be top of mind as you think about the gaps marketers see and are frustrated with. What marketers expressed as “troubling trends” was rather extensive…. In this section, we’ll dive a bit deeper into key gaps, and along with them, I’ll share some thoughts on what you might consider to take advantage of them.
- So, we looked at these before, but I wanted to focus on these four categories in particulary. As we’ve touched upon already to some extent, two are new technologies and data. I come back to technology and data for a number of reasons, one of which is that both are prime areas for future evolution in the industry. Also, marketers see a void in genuine expertise here, and they are genuinely seeking expertise. An area of major concern is strategy and strategic leadership. Once again this is critical for the industry’s future. If you can be or become a strong leader, you will be able to influence the industry’s future – not to mention your firm’s! Finally, Marketers are concerned agencies are slipping in foundational focus from innovation and creative to - again – genuine expertise in more traditional areas such as PR and Research.
- Verbatims from Marketers on the gaps they perceived in the evolution of marketing technology include: Selling the technology and not the solution. Dash to programmatic without grasping the risks; finding a true method of handling fraud. Not understanding technology of marketing demographics. Lack or experience in digital. Too much emphasis on social without clear measurement of success. Too general, not specific on how technology is to be applied. Inability to understand new technologies before entering into campaigns with those channels.
- The perception seems to be that agencies have sort been jumping on the technology and data bandwagon, rushing to new technologies before they are really well tested and understood. Or simply creating a perception of a “me-too” presence, just to “be there”. This is a problem. Marketers need substantive expertise, and they are telling us they see a void.
- With regard to data, some of the Marketers’ remarks were an off-shoot of the gaps they see in expertise with technology. Ability to utilized data to determine ROI was an often-cited concern. They also cited failure to understand the metrics and to use data appropriately. This particular point is certainly one that spells opportunity.
- I’m suggesting options to consider for filling gaps in Technology and Data Gap because potential solutions are common to both, and because the frustration marketers express with one seem to flow to the other. No doubt marketing technology is going to continue evolving rapidly, and this includes the opportunities it presents for harvesting data. Manage this evolution proactively. First of all examine the basics. A couple thoughts here as examples. - Has your client’s brand audience changed? Who is this group/these groups, and how do they consume brand information? Are new technologies opening communication channels that are meaningful to these audiences. What are the metrics that are leading indicators your clients need to monitor to manage and grow their businesses? For example – are the number of Facebook followers REALLY indicative and predictive of future sales. If so, great; measure this. If not, zero in on the metrics that DO matter. Second key point is, assuming new technology DOES make sense for your client/clients, what is the best avenue for fulfilling that need. Earlier we talked rather theoretically about you might answer some of these needs. This needs to be a key piece of your human resource stratey. Furthermore, once you decide if to expand your service offerings with genuine expertise, plan how to communicate this to your clients and your prospects. How does the new service offering affect your positioning? Be sure to consider this, plan appropriately for the evolution that it will bring, and be ready to market this about your own firm.
- Now, looking further at the strategic issues troubling Marketers, we see that a number of them rest considerably in what they observe as the ability of agencies to integrate digital program components with all media – with all media in line with strategy. However, there are broader, over-arching concerns with regard to capability with business and marketing strategy that are quite important. These speak to a need for more leadership from agencies, beginning with: Observed lack of direction One response also lamented seeing the “Old model”, and is frustrated that agencies don’t seem to be in a position to lead clients --- that is, they “don’t know what works”. With regard to the ability to integrate “new” media effectively, respondents remarked agencies: - view social media as a discrete function or strategy rather than a tool that needs to be a component of an integrated strategy that supports overarching organizational goals - push digital media tactics without an underlying strategy - specialize in one aspect of the digital market. Integrated campaigns that run across all media are everything.
- This is so elementary, but the degree of Marketer frustration indicates agencies are falling short here as strategic partners. Frankly, Marketers seem to be RAVENOUS for strategic partners who have the ability to foresee industry opportunities and help LEAD the client’s organization to them. This represents a level of opportunity that can carry your firm successfully far into the future If you have the talent and expertise to step up to that strategic leadership role, be courageous and do it. KNOW your clients’ industries. Bring them fresh insights. Challenge them when their thinking becomes distracted with the latest “shiny object”. But, maybe strategy ISN’T where your agency excels. Maybe your firm does best pounding out materials at a tactical level. Nevertheless, make absolutely certain that your deliverables ARE aligned with the client’s strategy. If your client is not clear on strategy and direction, be courageous as well, and discuss what is murky. Accepting assignments that don’t seem strategically rational will not lead either your firm or your client to success.
- What is most concerning is the gaps Marketers are citing in just handling the basics. Contrary to the general optimism in and about the outlook for the industry, YIKES!! This does not look so good! This is a long list of fundamentals. If nothing else, one opportunity each and every agency can jump on is correcting these issues.
- That list is honestly just a sampling of the troubling trends Marketers cited that fall in the category of “fix the basics”. Reading the verbatims had me feeling like a bucket of ice had been dumped on me. Part of me wants to assume that is too elementary a point to make, but Marketers are pretty hot about it.
- It’s important, so if nothing else, take a truthful look at your firm, and make sure your entire team is geared for excellence before doing anything else. If you are feeling like a lot of your client relationships are rocky, be especially diligent in self-assessment. And candid conversations with your clients asking for performance feedback could be a ticket to righting the relationship(s). So, let’s move next and focus on what needs to do to grasp the opportunity that IS out there, beginning with a plan – that entails, of course, delivering on the basics.
- I know time is a limited resource, but you HAVE to do this for the future health of your agency. If you haven’t done so already, scrutinize your own business plan - not just for 2015, but look at the next 3-5 years.
- Besides the areas we have been discussing, take time to understand the industry dynamics fully and consider how you guide your firm through them – enable your firm to RIDE ON the currents they create – and THRIVE. This is where you can really step up as a leader. Even if you don’t have a formal leadership role in your firm, you can be a visionary, proactive member and help encourage the team forward toward the opportunity in the industry.
- I don’t want to offend anyone with getting too elementary here in how to plan and implement client retention programs and business development initiatives, but I will pop a couple of ideas out here. And, we’d be happy to talk with you about resources we have that can help you through this important process.
- Let’s talk about client retention first. What’s the saying? Make new friends, but keep the old. One is silver and the other gold? So, this picture of thoroughbreds mixes metaphors a bit, and I hate to state the obvious, but do ALL you can to keep your current stable of clients ---- corralled.
- In the survey, Agencies lamented eroding loyalty from marketers. Certainly, dynamics outside the agency’s control exist, but make sure that you make your firm indispensable to your clients. Every day. Numerous responses to the “Troubling Trends” question in the survey surrounded erosion of business from clients. Observed concerns included declined loyalty, growing “project work” vs. AOR assignments, procurement’s increasing involvement, and the appearance/reappearance or expansion of in-house agencies. These are REAL dynamics, but on the agency “side”, we have to look at the root cause for these developments. The easy answer is cost containment initiatives within client organizations, and that’s likely true. More to the story may be the value agencies are delivering. How do you build value like no one else can?
- The focus of our webinar in September 2014 was “Creating Lasting Productive Partnerships Between Agencies and Marketers”. It’s been less than six months, and that material is all very relevant still. The webinar is posted on our website. View it as often as you like as you review and develop your plans.
- Some key points to remember with regard to retention: Hit or exceed goals. Another category of concerns agencies expressed in the 2015 Outlook Survey is that their clients do not provide clear direction, goals and metrics. Take a firm lead with your clients on this. It’s possible they are not doing this planning homework themselves, so insist with them that their success is your top priority. Show them this by leading them through a goal-setting process –
- --- that monitors the RIGHT metrics! Make sure they are thinking about the metrics that truly reflect what is driving their business. What numbers, what measurements are leading indicators to their sales and profit performance? Make sure they are the right ones. Bring yourself to such issues as a proactive, leadership partner. You know this is as important to your client as it is to you. Push for these definitions and offer to: “be the secretary”. Take the notes, develop the documentation. Get confirmation or corrections, and offer to distribute it to all team players. Organize brief monthly sessions to make sure everyone is on track – and importantly – sees your firm as being on track
- Some key points to remember with regard to retention: Immerse yourself – and insist your staff immerses themselves – in your clients’ businesses. Understand –better than your clients do – what can change their world. This seems elementary, but it’s not easy. And, it’s so important that I have to call it out --- know your clients’ businesses, their competition and their industries better than they do. This depth of expertise enables you to bring business insights and strategic ideas that add value. Deliver your client something they haven’t thought of themselves regularly. Being the partner who brings an “aha moment” regularly can help to make you indispensable. Make sure to allow yourself and your staff the time it takes to become your clients’ experts.
- Some key points to remember with regard to retention: Consider “voice of the client” report cards. This is a tool that goes beyond providing feedback on the work your firm has already completed. It can identify gaps that need to be closed before they create problems. It can also reveal opportunity for your firm to anticipate and prepare for upcoming needs.
- Now, for business development. A methodical, consistent new business development initiative is vital to your firm for it to be healthy two, three, five years from now. We talked earlier about how agencies are viewing the industry as more competitive than it had been in the past. Furthermore, 88% of agencies responding to our 2015 New Year Outlook Survey indicated their approach to new business will be somewhat or much more aggressive. And briefly for now, I just mentioned inbound efforts associated with new business development. Our survey results indicated that agencies are seeing stronger results on inbound than they did a year ago (25% vs 18% in 2014). Still, most are not getting the full benefit inbound can offer, and a big reason is they are expecting inbound to do it all. Inbound HAS to be complemented with outbound outreach. And this is an entire webinar on it’s own! Watch for more information later this spring.
- I hope you have your 2015 new business program underway by now. But whether you do or not, take a look at the case studies on our website. Some common factors you will notice underlying success include: Methodology – there IS a system, and it is worked every day by the person/people who have new business responsibility. Proactive – the plan may include inbound elements, but planned, proactive outreach is a vital part of it. Consistent – as I mentioned, the program is worked everyday. Prospects see continuity in contacts from a person devoted to new business development. Something we see consistently failing to deliver new business results is the approach where everyone on the agency team has responsibility to bring in new business. Without structure and accountability, this approach to new business development falls short.
- Our blog and the resources tab on our website provides extensive information that can help as you start building or continue to build your business development plan.
- As you continue to think about staffing for your new business program, one of our blog posts I’d refer you to is from December 29, and it poses a question about assigning responsibility for new business development for your firm. The post includes reference to related articles that may also help you as you think about the person – or people – internally or outsourced – who will provide the best natural “fit” for the success of your new business program.
- Opportunity to grow your business in the Advertising and Marketing industry is certainly extensive. The frustrations that marketers express should tell you – they need help and they want help. The business has certainly changed. It will continue to. And that’s why there’s opportunity. Marketers need leaders from their agency partners. People who are visionary, who can see changes coming – and help shape them as they approach. They also need leaders who have the capacity to be true strategic partners, and…. Who are also willing to grind into the day-to-day demands of execution. Make the most of it by building a plan that supports your vision for where you want to take your firm. Stick to it! Show your clients/prospective clients the strategic leadership they are seeking. Be brave enough to be a strategic leader, and not simply an order taker. IF you see gaps in capabilities and expertise in your firm decide how you want to position yourself. Staff and/or partner accordingly to support that positioning. Broadcast who you are and what you do. This is not a passive exercise. Be proactive in it.
- Marketers need leaders from their agency partners, leaders who can wear many hats. For your firm to flouris, your clients need you to be who are visionary, who can see changes coming – and help shape them as they approach. They also need leaders who have the capacity to be true strategic partners, and…. Who are also willing to grind into the day-to-day demands of execution, and more. Make the most of it by building a plan that supports your vision for where you want to take your firm. Stick to it! Show your clients/prospective clients the strategic leadership they are seeking. Be brave enough to be a strategic leader, and not simply an order taker. IF you see gaps in capabilities and expertise in your firm decide how you want to position yourself. Staff and/or partner accordingly to support that positioning. Broadcast who you are and what you do. This is not a passive exercise. Be proactive in it.
- Make the most of it by building a plan that supports your vision for where you want to take your firm. Stick to it! Show your clients/prospective clients the strategic leadership they are seeking. Be brave enough to be a strategic leader, and not simply an order taker. IF you see gaps in capabilities and expertise in your firm decide how you want to position yourself. Staff and/or partner accordingly to support that positioning. Broadcast who you are and what you do. This is not a passive exercise. Be proactive in it.
- If you haven’t seen the 2015 New Year Outlook report already, please read it. It is posted on our website. Where marketers are expressing “troubling trends”, look for how these represent opportunity for your firm.
- Also, I believe this industry is at a very fascinating point of evolution. I think there are exciting opportunities to lead the industry to its next phase. It can be a very rich evolution with the benefit of collaborating strategic and creative forces. That’s all of you. One place for discussing what’s to come in our industry and how to shape it is our LinkedIn Forum – Building Better Client-Agency Relationships. Join us here.
- This webinar will be posted on YouTube. Please feel free to refer colleagues to it. Call us with questions, thoughts…