2. The Art & Science of Selling Agency Services
How to Stop the Churn
Oct. 18, 2012
Paul
Roetzer
@paulroetzer
Founder & CEO, PR 20/20
Author of The Marketing Agency Blueprint
3. It s
not
about
who
we
are,
but
what
we,
as
marke1ng
agencies,
have
the
poten&al
to
be.
@PaulRoetzer
#AgencyBlueprint
4. growth is the easy part.
retaining it, and making it profitable,
is the real challenge for agencies.
10. 49% of marketers report they will consolidate
or change agencies over the next 12 months.
another 15% aren’t sure.
Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.
11. only 36% of marketers are firmly committed to
their agency relationships.
Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.
12. 51% of business leaders reported reducing their
agency roster in the past 3 years. 44% say they
will continue to consolidate.
Source: Avidan Strategies Report, via MediaPost
13. Churn Factors
agency side
‣ Over promise and under deliver ‣ Financial instability
‣ Focus on outputs, not outcomes ‣ Stretched too thin
‣ Talent turnover ‣ Stagnant business model
‣ Weak processes ‣ Siloed services
@PaulRoetzer
#AgencyBlueprint
14. Churn Factors
client side
‣ Unrealistic expectations ‣ Short-term focus
‣ Weak foundation ‣ Marketing technology utilization
‣ Poor management ‣ Conservative business practices
‣ Lack of vision ‣ Sales/marketing team strength
‣ Bad product ‣ Personnel changes
‣ Financial instability ‣ Mergers & acquisitions
@PaulRoetzer
#AgencyBlueprint
15. the cost of bad relationships
‣ Agency resources (people, time, money)
‣ Opportunity lost
‣ Financial pains
‣ Loyal account neglect
‣ Mental health (of employees, leaders)
‣ Employee burnout and turnover
‣ False foundation (The Red Zone)
@PaulRoetzer
#AgencyBlueprint
16. The Red Zone
monitor and grade client portfolio health
45% of recurring revenue is at risk to churn
@PaulRoetzer
#AgencyBlueprint
17. Choose the Right Clients
‣ Commit to prospects who value your people, time and energy.
‣ Watch for red flags.
‣ Trust your instinct.
‣ Be willing to walk away.
‣ Take a more sophisticated approach to sales.
@PaulRoetzer
#AgencyBlueprint
22. challenges with the current process
‣ Time intensive
‣ Requires high-level personnel to analyze
‣ Lacks scoring system and visualizations
‣ Not a true assessment of success potential
‣ Fails to properly set expectations
‣ Not scalable
@PaulRoetzer
#AgencyBlueprint
23. A More Intelligent Process & Platform
subjective analysis. assessment scoring. automated recommendations.
‣ Assess business and marketing strengths.
‣ Forecast potential for success.
‣ Build an integrated marketing strategy.
‣ Connect actions with KPIs and audiences.
‣ Determine talent needs and team structure.
‣ Forecast agency services costs.
‣ Allocate resources — time and money.
@PaulRoetzer
#AgencyBlueprint
24. Net Marketing Score
Every element of an organization, as it relates to marketing,
can be divided into: assets, neutrals and escalators.
@PaulRoetzer
#AgencyBlueprint
25. Net Marketing Score
By evaluating and scoring these elements, an organization can
devise marketing strategies; allocate the time, money and talent;
and adapt resources and priorities based on performance.
35. 80% of chief marketing officers think integrated services will
increase in importance over the next five years, according to a
study by The Horn Group and Kelton Research.
36. however, in the same study, 60% of CMOs
indicated that they are unable to find an
integrated firm to meet those needs.
37. only 9 percent of senior marketers believe traditional ad
agencies are doing a good job of evolving and extending
their service capabilities in the digital age.
that means 91 percent are not!
Source: The Chief Marketing (CMO) Council
report More Gain, Less Strain.
38. 72% of marketers say agencies are “inconsistent and
need to improve” when it comes to delivering integrated
communications programs.
Source: Avidan Strategies Report, via MediaPost
39. “There’s an underlying level of frustration among senior
corporate marketers worldwide when it comes to agency
contributions to business value creation, strategic thinking,
and digital marketing development.”
— Donovan Neale-May, Executive Director, CMO Council
40. The New Marketing Services Mix
‣ Search ‣ PR
‣ Social ‣ Digital advertising
‣ Content ‣ Email
‣ Web ‣ Analytics
‣ Mobile ‣ Tech integration
‣ Brand ‣ App development
43. 52% of senior marketers do not have a formal scorecard for
rating agency performance on an annual basis.
Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.
44. 71% of clients cited accountability as the main area of
frustration with agencies, as CEO and board levels demand
greater marketing ROI effectiveness.
Source: Avidan Strategies Report, via MediaPost
48. 1) assess strengths and forecast potential.
2) offer integrated services.
3) benchmark performance.
4) connect actions to audiences and KPIs.
49. Client Services Series:
A Year in the Life of a Hypothetical B2B Account
(Live sessions start Oct. 25)
• Session 1: The Marketing Assessment
• Session 2: The Scorecard
• Session 3: The GamePlan
• Session 4: The Honeymoon (Q1)
• Session 5: The Reality (Q2)
• Session 6: The Tipping Point (Q3)
• Session 7: The Renewal (Q4)
www.Marke1ngAgencyInsider.com
33% off promo code: hubspotwebinar
50. thank you
Paul Roetzer
paul@pr2020.com
PR2020.com
NetMarketingScore.com
MarketingAgencyInsider.com