2. Organic Growth
So what is Organic Growth?
Organic growth is the process of business expansion
due to increasing overall customer base, increased
output per customer or representative, new sales, or
any combination of the above, as opposed to mergers
and acquisitions, which are examples of inorganic
growth. Typically, the organic growth rate also
excludes the impact of foreign exchange. Growth
including foreign exchange, but
excluding divestures and acquisitions, is often referred
to as core growth.
3. Prioritizing Leads To Organic Growth
• Clients want from agencies ideas to make their
businesses grow. What agencies want from
clients are opportunities to do “great” work and
be fairly paid for their contribution to clients’
businesses.
• It is impossible for either of these to happen
without “chemistry” among both parties. In order
to obtain chemistry, an environment must be
created that will breed success. It is the
responsibility of agencies to create this
environment.
4. Prioritizing Leads To Organic Growth
• A well trained account service person should
always be prepared with relevant topics, points of
view and issues that flatter the client and
demonstrate interest and imagination.
• In advance prepare some BBIs VBIs or VASs.
• Get ready to introduce these to stimulate the
conversation.
• Organic growth works best when relevant to their
consumers, their industry or their operations, not
just selling in more of your services.
5. BBIs VBIs & VASs.
• Business Building Ideas
• Value Added Services
• Value Based Initiatives
6. Organic Growth
The Most Misunderstood Aspect
Few agency leaders have an idea to grow
existing business but it’s an important source of
new revenue.
• Organic growth is a game of singles and
doubles. It’s small day-to-day wins and quick
suggestions to changes in the market place
that build the foundation for both retention
and new organic growth.
7. Organic Growth
The Most Misunderstood Aspect
• Ad agencies keep waiting for a big idea.
• They miss the point that singles and doubles
are the foundation for home runs.
• Singles and doubles get the client in a
receptive mood and help the client change
perspectives about your value.
• Don’t worry about whether or not your
suggestions are being adopted. The client isn’t
counting. They just want the suggestions to
keep on coming.
8. Organic Growth
The Most Misunderstood Aspect
• It gives them the feeling of involvement and
concern and that’s what important for retention.
• Build a measure into your evaluations on the
number of organic growth ideas offered by each
employee. And add in some bonus money for
suggestions that were adopted and that added to
the firm’s revenue. That will help make organic
growth part of your DNA and that’s important.
9. Organic Growth
The Most Misunderstood Aspect
• You must have understanding on how and
when to use Value Added Services (VAS) to sell
in other agency resources.
• Discover the power of Value-Based Initiatives
(VBIs) and how to find them, present
them, and price them.
• See why clients want a continuing stream of
Business Building Ideas (BBIs) coming their
way and understand that this is strong client
desire.
10. Hurdles – Client Agency Relationship
Narrow Field of Vision
• The agency’s concentration on advertising and its
limited field of vision in seeing other areas of
client responsibilities.
• Clients want agencies to understand that they
have other cares and concerns than just
advertising.
• For most clients, advertising represents a small
fraction of their everyday responsibilities.
• Agencies appear to be out of step with clients
when agencies fail to recognize this fact.
11. Hurdles – Client Agency Relationship
Advertising Less Significant
• The percentage of the client’s total marketing
budget allocated to advertising has dropped
dramatically over the last 10 years.
• This is reflected in major shifts away from
advertising and into promotions, special
events, online, social and the rest.
• Consequently, advertising is not seen as having a
significant impact on the client’s marketing
program and total business as it used to be.
12. Hurdles – Client Agency Relationship
Lost Intellectual Altitude
• Agencies have lost intellectual altitude in the
minds of many clients. Agencies are seen as
useful to have around but often aren’t invited
to work on the larger enterprise problems and
opportunities.
13. Hurdles – Client Agency Relationship
• Lost Relationship-Keeper
• At many agencies, the account management staff
act as the in-house sales force for the creative
department.
• In this role the account staff has no power to fight
for the client’s point of view with a war-lord
creative director.
• Clients know this and resent it.
• The account management team is no longer seen
as the client’s relationship keeper at the agency
nor the agency’s leader with the client.
• They become POST OFFICE! Always keep an eye.
14. Hurdles – Client Agency Relationship
Lost Trust
• Many agencies are never seen as being on the
client’s side, but are seen as having their own
agenda with a focus on “doing creative.”
• This puts the focus on the agency’s
agenda, not the client’s agenda. This shift in
focus has caused a serious breakdown in client
trust in agencies.
15. Hurdles – Client Agency Relationship
Focus on Price
• Most agencies offer similar services with little
added value or differentiation – a good
description of a commodity.
• In any market where there is no meaningful
value added to the product or service, price
becomes the most important consideration.
Agencies are faced with this now.
16. Hurdles – Client Agency Relationship
Self-Interest at Heart
• Agencies always seem to be looking out for
ways to get clients to spend more so agencies
can earn more.
• This drives clients crazy. Find a way to only
offer ideas that help the client – both
personally and professionally.
17. Early Warning Tripwires
It’s important for an ad agency to have a series of tripwires that
can help you identify problems before they blow up in your face.
Agency report card
• Maybe it was the offer.
• Maybe it was the media placement.
• Maybe the creative was just that damn awesome.
• Originality
• Accurate messaging
• Quality of production
• Deadlines
• Revenue growth / sales figures
In all self appraisal is very important. Ask yourself questions and give
honest answers.
18. Early Warning Tripwires
Client report card
• Ask the Client about your performance in writing.
• Give easy to answer questions.
• Personal interview
Changes in top management
Weekly management review calls
Weekly Status Reports
19. Early Warning Tripwires
• Regular social get-together with senior
management.
• Monitoring your client in the media – put him
on Alerts.
• Too many NoCs.