The Art and Science of Selling Agency Services: How to Stop the Churn (Oct. 18)

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Slides from the encore presentation of Paul Roetzer's 2012 Inbound session. Presented during a HubSpot webinar on Oct. 18.

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The Art and Science of Selling Agency Services: How to Stop the Churn (Oct. 18)

  1. 1. Webinar Starting Soon!
  2. 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. 3. It s  not  about  who  we   are,  but  what  we,  as  marke1ng  agencies,  have   the  poten&al  to  be.   @PaulRoetzer #AgencyBlueprint
  4. 4. growth is the easy part.retaining it, and making it profitable, is the real challenge for agencies.
  5. 5. A Cautionary Tale of Churn @PaulRoetzer #AgencyBlueprint
  6. 6. PR 20/20 New Campaign Clients (2009) ‣ 15 new campaign clients ‣ $195,000 in 2009 revenue ‣ $503,000 in 2010 forecasted revenue @PaulRoetzer #AgencyBlueprint
  7. 7. life is good! @PaulRoetzer #AgencyBlueprint
  8. 8. 1 client remains @PaulRoetzer #AgencyBlueprint
  9. 9. avg. client relationship = 11 months Image Credit: Hollywood_PR
  10. 10. 49% of marketers report they will consolidateor change agencies over the next 12 months. another 15% aren’t sure. Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.
  11. 11. only 36% of marketers are firmly committed to their agency relationships. Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.
  12. 12. 51% of business leaders reported reducing theiragency roster in the past 3 years. 44% say they will continue to consolidate. Source: Avidan Strategies Report, via MediaPost
  13. 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. 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. 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. 16. The Red Zonemonitor and grade client portfolio health 45% of recurring revenue is at risk to churn @PaulRoetzer #AgencyBlueprint
  17. 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
  18. 18. make retention the priority.
  19. 19. 1) assess strengths and forecast potential.2) offer integrated services.3) benchmark performance.4) connect actions to audiences and KPIs.
  20. 20. 1) Success Starts with the Assessment @PaulRoetzer #AgencyBlueprint
  21. 21. PR 20/20 Inbound Marketing Survey 175+ audits completed @PaulRoetzer #AgencyBlueprint
  22. 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. 23. A More Intelligent Process & Platformsubjective 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. 24. Net Marketing ScoreEvery element of an organization, as it relates to marketing, can be divided into: assets, neutrals and escalators. @PaulRoetzer #AgencyBlueprint
  25. 25. Net Marketing Score By evaluating and scoring these elements, an organization candevise marketing strategies; allocate the time, money and talent; and adapt resources and priorities based on performance.
  26. 26. Net Marketing Score: Model @PaulRoetzer #AgencyBlueprint
  27. 27. Net Marketing Score: ModelMarketing Manager Section NMS = 62% @PaulRoetzer #AgencyBlueprint
  28. 28. Net Marketing Score: Model CEO Section NMS = 38% @PaulRoetzer #AgencyBlueprint
  29. 29. Business Fundamentals ‣ Business life cycle stage ‣ Competitive advantage ‣ Financial stability ‣ Growth goals ‣ Leadership team ‣ Pricing strategy ‣ Product/service quality @PaulRoetzer #AgencyBlueprint
  30. 30. Marketing Foundation‣ Brand awareness‣ Internal inbound competencies‣ Lead sources‣ Marketing/sales integration‣ Marketing technology utilization‣ Reach‣ Website performance @PaulRoetzer #AgencyBlueprint
  31. 31. www.NetMarketingScore.com
  32. 32. 2) Offer Integrated Services @PaulRoetzer #AgencyBlueprint
  33. 33. Published January 2010 @PaulRoetzer #AgencyBlueprint
  34. 34. Published July 2010 @PaulRoetzer #AgencyBlueprint
  35. 35. 80% of chief marketing officers think integrated services willincrease in importance over the next five years, according to a study by The Horn Group and Kelton Research.
  36. 36. however, in the same study, 60% of CMOs indicated that they are unable to find an integrated firm to meet those needs.
  37. 37. only 9 percent of senior marketers believe traditional adagencies 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. 38. 72% of marketers say agencies are “inconsistent andneed to improve” when it comes to delivering integrated communications programs. Source: Avidan Strategies Report, via MediaPost
  39. 39. “There’s an underlying level of frustration among senior corporate marketers worldwide when it comes to agencycontributions to business value creation, strategic thinking, and digital marketing development.” — Donovan Neale-May, Executive Director, CMO Council
  40. 40. The New Marketing Services Mix ‣ Search ‣ PR ‣ Social ‣ Digital advertising ‣ Content ‣ Email ‣ Web ‣ Analytics ‣ Mobile ‣ Tech integration ‣ Brand ‣ App development
  41. 41. 3) Benchmark Performance @PaulRoetzer #AgencyBlueprint
  42. 42. Build Custom Scorecards establish expectations. @PaulRoetzer #AgencyBlueprint
  43. 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. 44. 71% of clients cited accountability as the main area offrustration with agencies, as CEO and board levels demand greater marketing ROI effectiveness. Source: Avidan Strategies Report, via MediaPost
  45. 45. 4) Connect Actions to Audiences & KPIs @PaulRoetzer #AgencyBlueprint
  46. 46. Deliver Resultslet performance tell your story. @PaulRoetzer #AgencyBlueprint
  47. 47. breakups sucks.4 steps to stop the churn. @PaulRoetzer #AgencyBlueprint
  48. 48. 1) assess strengths and forecast potential.2) offer integrated services.3) benchmark performance.4) connect actions to audiences and KPIs.
  49. 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. 50. thank you Paul Roetzer paul@pr2020.com PR2020.com NetMarketingScore.comMarketingAgencyInsider.com
  51. 51. http://bit.ly/InboundPartner www.MarketingAgencyInsider.com

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