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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  • 1.Webinar Starting Soon!

2. The Art & Science of Selling Agency ServicesHow to Stop the Churn Oct. 18, [email protected] & CEO, PR 20/20Author 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. 5. A Cautionary Tale of [email protected] #AgencyBlueprint 6. PR 20/20 New Campaign Clients (2009)15 new campaign clients$195,000 in 2009 revenue$503,000 in 2010 forecasted [email protected] #AgencyBlueprint 7. life is [email protected] #AgencyBlueprint 8. 1 client [email protected] #AgencyBlueprint 9. avg. client relationship = 11 monthsImage Credit: Hollywood_PR 10. 49% of marketers report they will consolidateor change agencies over the next 12 months. another 15% arent 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 theiragency roster in the past 3 years. 44% say they will continue to consolidate.Source: Avidan Strategies Report, via MediaPost 13. Churn Factors agency sideOver promise and under deliverFinancial instabilityFocus on outputs, not outcomesStretched too thinTalent turnover Stagnant business modelWeak processesSiloed [email protected] #AgencyBlueprint 14. Churn Factors client sideUnrealistic expectationsShort-term focusWeak foundation Marketing technology utilizationPoor management Conservative business practicesLack of visionSales/marketing team strengthBad product Personnel changesFinancial 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 Zonemonitor and grade client portfolio health 45% of recurring revenue is at risk to churn @PaulRoetzer#AgencyBlueprint 17. Choose the Right ClientsCommit 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 [email protected] #AgencyBlueprint 18. make retention the priority. 19. 1) assess strengths and forecast potential.2) offer integrated services.3) benchmark performance.4) connect actions to audiences and KPIs. 20. 1) Success Starts with the [email protected] #AgencyBlueprint 21. PR 20/20 Inbound Marketing Survey 175+ audits [email protected] #AgencyBlueprint 22. challenges with the current processTime intensiveRequires high-level personnel to analyzeLacks scoring system and visualizationsNot a true assessment of success potentialFails to properly set expectationsNot scalable @PaulRoetzer#AgencyBlueprint 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. Net Marketing ScoreEvery element of an organization, as it relates to marketing, can be divided into: assets, neutrals and [email protected] #AgencyBlueprint 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. Net Marketing Score: Model @PaulRoetzer#AgencyBlueprint 27. Net Marketing Score: ModelMarketing Manager Section NMS = 62%@PaulRoetzer #AgencyBlueprint 28. Net Marketing Score: ModelCEO Section NMS = 38% @PaulRoetzer#AgencyBlueprint 29. Business FundamentalsBusiness life cycle stageCompetitive advantageFinancial stabilityGrowth goalsLeadership teamPricing strategyProduct/service [email protected] #AgencyBlueprint 30. Marketing FoundationBrand awarenessInternal inbound competenciesLead sourcesMarketing/sales integrationMarketing technology utilizationReachWebsite [email protected] #AgencyBlueprint 31. www.NetMarketingScore.com 32. 2) Offer Integrated Services @PaulRoetzer#AgencyBlueprint 33. Published January [email protected] #AgencyBlueprint 34. Published July 2010 @PaulRoetzer#AgencyBlueprint 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. 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 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. 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. Theres 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. The New Marketing Services MixSearchPRSocialDigital advertisingContent EmailWeb AnalyticsMobileTech integrationBrand App development 41. 3) Benchmark [email protected] #AgencyBlueprint 42. Build Custom Scorecards establish expectations. @PaulRoetzer#AgencyBlueprint 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 offrustration with agencies, as CEO and board levels demandgreater marketing ROI effectiveness. Source: Avidan Strategies Report, via MediaPost 45. 4) Connect Actions to Audiences & [email protected] #AgencyBlueprint 46. Deliver Resultslet performance tell your [email protected] #AgencyBlueprint 47. breakups sucks.4 steps to stop the [email protected] #AgencyBlueprint 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 youPaul [email protected] PR2020.com NetMarketingScore.comMarketingAgencyInsider.com 51. http://bit.ly/InboundPartner www.MarketingAgencyInsider.com