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THE PROFITABLE AGENCY [INBOUND 2014]
The document discusses the evolving landscape of marketing, highlighting the need for agencies to adapt to changes in consumer behavior and technology to attract and retain clients. It identifies gaps in digital skills and the importance of modernizing agency capabilities to retain clients and drive profitability. Finally, it offers strategies to maximize agency profits, emphasizing the significance of performance, scalability, and building strong client relationships.
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THE PROFITABLE AGENCY [INBOUND 2014]
- 1. #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
- 2. 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
- 3. the consumer is the true change catalyst @paulroetzer www.pr2020.com#inbound14
- 4. 90% of daily media interac;ons are screen based source: Google, The New MulE-‐Screen World @paulroetzer
- 5. B2B buyers may be up to 90% through their journey before contacEng a vendor. ! source: Forrester image: Jayneandd @paulroetzer www.pr2020.com#inbound14
- 6. Source: Google Every trackable consumer acEon creates a data point, and every data point tells a piece of the customer's story @paulroetzer www.pr2020.com#inbound14
- 7. Source: Chiefmartech.com the customer journey does not follow a linear path defined by marketers @paulroetzer www.pr2020.com#inbound14
- 8. 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 @paulroetzer www.pr2020.com#inbound14
- 9. Define FoundaEon Projects create more value, for more people, more oDen, so when it’s Eme to choose, they choose you new marketing imperative
- 10. what’s holding businesses back from achieving performance poten;al?
- 11. image: Xurxo Marcnez talent gap + tech gap + strategy gap = PERFORMANCE gap @paulroetzer www.pr2020.com#inbound14
- 12. of marketers say their lack of skills is impacEng revenue in some way ! source: 2012 MarkeEng Skills Gap Report 75% @paulroetzer www.pr2020.com#inbound14
- 13. 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% @paulroetzer www.pr2020.com#inbound14
- 14. a talent war has begun for tech-‐savvy, hybrid marketers
- 15. capable of building, managing and execu/ng fully integrated campaigns that produce results @paulroetzer www.pr2020.com#inbound14
- 16. agile, adept at advanced marke;ng tech, and experts in inbound strategy @paulroetzer www.pr2020.com#inbound14
- 17. how do we find the unicorns? @paulroetzer
- 18. 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
- 19. businesses must take the ini;a;ve to mold their own modern marketers @paulroetzer www.pr2020.com#inbound14
- 20. by 2017, the CMO will spend more on IT than the CIO. ! source: Gartner IT = CIO CMO @paulroetzer www.pr2020.com#inbound14
- 21. 6 classes, 43 categories, 947 companies
- 23. 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 @paulroetzer www.pr2020.com#inbound14
- 24. 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 @paulroetzer www.pr2020.com#inbound14
- 25.
- 26. 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
- 27. 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 @paulroetzer www.pr2020.com#inbound14
- 28. source: Accenture’s Turbulence for the CMO the markeEng industry is moving too fast to internalize everything
- 29. 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) @paulroetzer www.pr2020.com#inbound14
- 30. 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% @paulroetzer www.pr2020.com#inbound14
- 31. where do the other 91% turn for help? @paulroetzer www.pr2020.com#inbound14
- 32. growth is the easy part. retaining it, and making it profitable, are the real challenges for agencies. @paulroetzer www.pr2020.com#inbound14
- 33. a cauEonary tale of churn
- 34. Define FoundaEon ProjectsPR 20/20 growth (2009) 15 new campaign clients ! $195,000 in 2009 revenue ! $503,000 in 2010 forecasts
- 35.
- 36. 0 clients remain average relaAonship lasted 12 months
- 37. 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% @paulroetzer www.pr2020.com#inbound14
- 38. 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 @paulroetzer www.pr2020.com#inbound14
- 39. 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 @paulroetzer www.pr2020.com#inbound14
- 40. work with agency partners that care as much about performance and success as you do @paulroetzer www.pr2020.com#inbound14
- 41. 15 ways to maximize agency profits
- 42. Source: HubSpot 1) prove performance @paulroetzer www.pr2020.com#inbound14
- 43. @paulroetzer www.pr2020.com 2) develop scalable processes and services.
- 44. 3) reduce business development Eme.
- 45. (remove despera/on) 4) achieve financial stability.
- 46. 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
- 47. 6) get paid for planning. @paulroetzer www.pr2020.com#inbound14
- 48. 2006 2008 2010 2014 7) establish value-‐based pricing. @paulroetzer
- 49. 8) build brand and reputaEon.
- 50. 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. @paulroetzer www.pr2020.com
- 51. 10) arract and nurture entry-‐level talent. @paulroetzer www.pr2020.com#inbound14
- 52. 11) move to campaign-‐based contracts. @paulroetzer www.pr2020.com#inbound14
- 53. image: Xurxo Marcnez 12) fill talent, tech and strategy gaps. @paulroetzer www.pr2020.com#inbound14
- 54. (eliminate waste) 13) track ;me and efficiency.
- 55. 14) focus on reten;on. @paulroetzer www.pr2020.com#inbound14
- 56. Speaking 5% Publishing 5% Events 10% Sofware 10% Services 70% 15) diversify revenue. @paulroetzer www.pr2020.com
- 57. 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