Post on 07-Oct-2020
transcript
5 Biggest Mistakes Agencies Make Going After New Business
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Source: http://adage.com/article/agency-news/communication-breakdown-volvo-points-adland-issue/239711/ https://www.spencerstuart.com/who-we-are/media-center/chief-marketing-officer-tenure-now-at-45-months
Average CMO Tenure
23.6 23.5 23.2
26.8
28.4
34.7
42.0 43.0
45.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2002 2004 2006 2008 2010 2012 2014
Mo
nth
s
7.2
5.3
2.5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
1984 1997 2013 2020
Years
?
Average Client-Agency Tenure
Client-Agency Tenure is Decreasing
Average CMO Tenure
23.6 23.5 23.2
26.8
28.4
34.7
42.0 43.0
45.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2002 2004 2006 2008 2010 2012 2014
Mo
nth
s
7.2
5.3
2.5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
1984 1997 2013 2020
Years
?
Average Client-Agency Tenure
The Context: CMO Tenure is Increasing
5 Biggest New Business Mistakes
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Failure to address business issues
Lack relevant differentiation
Under-emphasis on current clients
No strategic marketing plan
Focus on the agency, not prospect
Mistake #1: Focus on the Agency, not the prospect
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Agencies Typically Talk About Themselves First
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Source: RSW/US; 2012 New Business Report; Client & Agency Perspective On Topics Related To Agency New Business
73.40%
26.60%
How would you characterize the approach agencies typically make
when they reach out to you to make you aware of their services?
Talk mainly about
themselves first
Are more
interested in
learning about
me first
Mistake #1: Focus on the agency, not prospect
Focus is on Themselves
How Most Agencies “Sell”
“We are the smartest, most strategic, most creative agency!” S
“We provide the best solution to your problem.”
A
“What problem are you trying to solve?”
P
Source: Thomas Freese & Mercer Island Group
Mistake #1: Focus on the agency, not prospect
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Focus on Their Problems
Example: How Agencies Should “Sell”
Build brand reputation, traffic and comp
store sales P
Our unique strategic insights drive programs
that simultaneously build the brand, drive
traffic and grow same store sales S
1. Do it yourself
2. Hire someone
3. Do nothing A
Source: Thomas Freese & Mercer Island Group
(A specific example based on a recent MIG review)
Mistake #2: Failure to Address Business Issues
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CMOs Must Prove Business Value
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1 – 2013 CMO Survey
2 – http://www.heidrick.com/~/media/Publications%20and%20Reports/The-Evolved-CMO-in-2014.pdf
Yes, 66.40%
No, 33.60%
Do you feel pressure from your CEO or Board to prove
the value of marketing?1
33%
40%
63%
Launch newproducts/brands
Increase brandawareness
Acquire new customers
Top three marketing objectives are to:2
13%
16%
54%
Increase shareholdervalue
Meet profit targets
Meet revenue targets
Marketing goals or objectives are most directly aligned to:2
Mistake #2: Failure to Address Business Issues
Yes, 66.40%
No, 33.60%
Do you feel pressure from your CEO or Board to prove
the value of marketing?1
Most Clients Can’t Prove Marketing Impact
36%
50%
14%
29%
52%
20%
0%
10%
20%
30%
40%
50%
60%
We prove the impact quantitatively We have a good qualitative sense ofthe impact, but not a quantitative
sense
We haven't been able to show theimpact yet
Which best describes how your company shows the short-term impact of marketing spend on your business?
Which best describes how your company shows the long-term impact of marketing spend on your business?
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Short and Long Term Impact of Marketing Spend on Business
Source: February 2014; The CMO Survey
Mistake #2: Failure to Address Business Issues
Two Thirds Can’t Prove Marketing’s impact!
Agency services are viewed as a cost center
No one really wants to “buy”: • Advertising
• PR
• Media
• Digital
• Content
• Etc.
Clients need help solving their problems:
addressing key business issues
11
$$$$
Agencies Must Address Client Business Issues
Source: Mercer Island Group
Agency Solutions Must Address Business Issues
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Business Issues Agency Solutions - Examples
Revenue Offer optimization
Market Share Targeting & mix management
Traffic Promotional print
Customer Acquisition Sampling
Loyalty Loyalty card
Growth Targeted investment
Awareness Broadcast & media targeting
Leads Direct response
ARPU Integrated marketing
Upsell/cross-sell Targeted offers
New Products & Launches Events & PR
Source: Mercer Island Group
Mistake #3: Agencies Lack Relevant Differentiation
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Competition is Getting Tougher
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63% Of agencies are in more situations
where multiple agencies are being considered.
2014 RSW/Us New Year Outlook Report: Agency And Marketer Expectations And Perspective For The Coming Year
Mistake #3: Agencies Lack Relevant Differentiation
Clients Are Increasing In-House Agency Work
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…of client-side
marketers have in-house
agencies in 2013; up
from 42% in 2008
58%
Source: 2014 RSW/Us New Year Outlook Report: Agency And Marketer Expectations And Perspective For The Coming Year
40% Of clients with in-house agencies
have cited moving creative
strategy to their in-house agency.
56% Of clients with in-house agencies
claimed to have moved business
that used to be handled by their
external agency in-house.
Mistake #3: Agencies Lack Relevant Differentiation
Apple to build in-house agency to 1,000
staffers.
Apple in-house agency now competing in
creative jump balls with TBWA/MAL and
other agencies.
Great Agency Positioning
Interaction
Process
Creates
Ownership
Demonstrates how a sense of co-ownership is created between the
client and agency.
Provides
Confidence
Inspires confidence that creative execution and
ideation will be compatible with the client’s creative views & brand direction.
Agency
Philosophy
Strategic
Process
Reason to
Believe
Provides the belief that even if initial creative executions
are “off”, the strategic process and strategic insight will lead to great work; time
and time again.
16 Source: Mercer Island Group
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Interaction Process
Agency Philosophy
Strategic Insight Process
Mistake #4: Under-emphasis on Current Clients
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1/3 of Marketers are Unhappy with Their Primary Agency
20 Source: RSW/US; 2011 New Business Report: A Client’s Look Ahead At Agencies
2%
3%
6%
8%
13%
13%
11%
19%
15%
10%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
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2
3
4
5
6
7
8
9
10
On a scale of 1-10, rate your overall satisfaction with your primary agency’s services. (1=Extremely Unhappy; 10=Extremely Happy)
68% Happy
32% Unhappy
Mistake #4: Under-emphasis on current clients
Clear & Regular Communication Could Ensure Better Relationships
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Source: RSW/US; 2011 New Business Report: A Client’s Look Ahead At Agencies
6%
18%
24%
41%
41%
47%
59%
77%
77%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other
Using operation process (i.e. 6 sigma)
Adding technologies to improve communication
Embracing best practice approach
Continuously auditing and assessing competency
Using performace scorecard or metrics
Involving senior client management
Ensuring client/agency teams are aligned
Making sure that the briefs are clear
Regular reviews and an annual evaluation
What can clients do to ensure better client/agency relationships? (Check all that apply)
Mistake #4: Under-emphasis on current clients
Client Run Assessment Processes Are Not Effective
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Of clients rate their agency measurement capability “highly”
Of clients view their assessment as being effective only “one-way”
Of agency evaluations are “externally benchmarked”
Of client evaluations are “externally benchmarked”
Source: WARC Best Practices; February 2012; How to Assess Client-Agency Relationships Effectively
Mistake #4: Under-emphasis on current clients
Client & Agency Assessment Best Practices
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Access to “Norms” & Best Practices Grounded Recommendations
Two Way Full Relationship Focus
Regular & Timely Early Warning
Third Party; Confidential Filter Straight Scoop
Unbiased Equal Client & Agency Representation
Qualitative & Quantitative Uncover Performance Drivers
Measures Importance & Performance Focused Improvement Efforts
Source: Mercer Island Group
24 Source: Mercer Island Group
Annual Feedback Cadence & Tools Annual Feedback Cadence & Tools
Daily Annual
Day-to-day Feedback
Regular Meeting
Feedback
Post-Project Feedback
Special Topic Meeting
Feedback
Formal Comprehensive
Feedback
Frequency
Type
Tool Interpersonal
Feedback Training
Regular Meeting Survey
Project Review Survey
Special Topic Meeting Survey
Annual 360 Review Process
Turn-key surveys:
• Pre-programmed & ready to distribute
• Built in reporting & analysis
• Simple
• Easy to apply
• Effective
• Rich & detailed
feedback Details
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Interpersonal Feedback Training
Interpersonal Feedback Training
Feedback Approach: • One-way • Short, to-the-point • Honest • Good intent • Direct • Fact based • Descriptive
Benefits: • Helps people hear your input
without defensiveness.
• Reinforces positive behavior, changes ineffective
behavior, or stops inappropriate behavior.
• Strengthens an authentic, respectful relationship
with co-workers.
Feedback Model:
Feedback Example:
When you took a call during the meeting I felt
distracted. I suggest that you wait until after the
meeting to take your calls in the future.
I wonderI suggestI want
When I heard or saw…
I thought or I felt…
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2
3
Source: Mercer Island Group
Mistake #5: No Strategic Marketing Plan
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Agency Growth Plans Often Start In A Hole
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If you want to grow +10%,
+10%
-15%
… but lose -15% of your business…
Reality
+15%
… you really need to grow +25%
+10%
Goal
Mistake #5: No Strategic Marketing Plan
Source: Mercer Island Group
61.97% of Clients Find Agencies
28 2014 RSW/US; New Year Outlook Report: Agency And Marketer Expectations And Perspective For The Coming Year
7.04%
47.89%
7.04%
5.63%
32.39%
Agency search consultants
Referals from friends, colleagues
Searching on Google, Bing, etc.
Social outreach
Calls, emails from agencies
How do you most often find out about new marketing agencies?
61.97%
Mistake #5: No Strategic Marketing Plan
Common Website Mistakes
Agency websites are often missing:
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Source: http://www.businessinsider.com/worst-ad-agency-websites-2012-4?op=1 & MIG analysis
Clear POV or differentiation
Capabilities; Services
Clear navigation & vitals
Recent experience
Awards & recognition
Creative with objectives & results
Mistake #5: No Strategic Marketing Plan
Compelling case studies
Bios of key staff
Provides
Confidence
Great Agency Positioning
Agency
Philosophy
Strategic
Process
Interaction
Process
Reason to
Believe
Creates
Ownership
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Clear & Complete Websites
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Services
What you offer; Your capabilities
Vitals
Headcount, ownership,
affiliations, contact info, etc.
Creative Samples
Objectives, insights & results
Awards/Notable News
Industry recognition; Key
agency news
Positioning
Differentiated
Case Studies
Objectives, strategy,
insights, creative & results
People
Bios, Roles, Photos
Experience
Current & recent clients
Source: Mercer Island Group
Help Prospects Find The Agency
Social
Content marketing
Awards
Events
News/PR
Networking
Targeted outreach (category & client)
32 Source: Mercer Island Group
Addressing the 5 Biggest Mistakes
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Addressing the 5 Biggest Mistakes
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Address their business issues
Distinctive agency positioning
Emphasize current clients
Strategic marketing plan
Focus on the prospect
Source: Mercer Island Group
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“By the time someone graduates from college, they have completed seventeen years of formal education. But in that time, they didn’t attend a single class on how to raise a child, and they haven’t been taught the first thing about how to sell – which, ironically, are two of the most important functions an adult will be asked to perform in their lifetime.”
- Tom Freese
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Questions & Discussion
More content: migroup.com/news & media
Twitter: @MIG_Steve
Call us: Robin: 206-236-0447 ext. 106 Steve: 206-236-0447 ext. 105
Email us: Stephen Boehler
steveb@migroup.com
Robin Boehler
robinb@migroup.com
Appendix:
Introduction to Mercer Island Group
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Marketing Management Consulting
Mercer Island Group
"My experience with Steve Boehler is that he has achieved the Holy Grail of what a consultant is all about. He takes time to understand how his clients make money ... and then he helps them make even more money.“ Scott Meyer, former CEO, Shandwick Worldwide
Capabilities
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Our vision is to help organizations
succeed beyond their wildest dreams
by engaging deeply and personally in
what matters most.
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Business growth falling short of targets?
Competition threatening?
Major new initiative planned?
Dry new product pipeline?
Interest in improving marketing ROI?
Organization & teamwork opportunities?
Training challenges?
Shorthanded at key skill positions?
Agency relationships & results sub-optimal?
Helping organizations solve critical
business & organizational challenges
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Poor new business results?
Structure inefficient or under-achieving?
Vision, Mission, Values unclear? Not compelling?
Client relationships & results sub-optimal?
Generic positioning?
Incomplete or infrequent feedback?
Poor client briefs?
Not achieving needed results?
Fees/Hours/Project inefficiencies?
Teamwork opportunities?
We also help solve critical agency challenges.
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Three Practice Areas
Business Strategy Brand, Product, Marketing, Market Research, Sales,
Competitive Intelligence & Interim Staffing
Organizational Effectiveness Vision, Strategy, Teamwork, Development, Training
Client-Agency Relationships Reviews, 360’s, Relationship Repair, Roster Management
"MIG has been an excellent business partner for Sprint for several years. They deliver excellent service levels, keen attention to detail and straight talk that helps you stay focused on what's really important. Plus they take a fun, unpretentious approach to the business that belies just how savvy they really are." Mark Rexroat, Sprint
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Acclaimed “Agency” Expertise
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Some Agencies We’ve Helped
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Clients: Consumer & Retail
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Clients: Telecom, Cable, Internet
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Clients: Technology
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We enjoy helping firms build
their business... “MIG has added value to my business for the past 15 years. Steve's "virtual team" approach allows us to get fast, up to date analysis done. MIG has excelled for us in the areas of competitive analysis, strategic planning, market segmentation, branding, and communications. Steve Boehler and his MIG team deliver high caliber work. His system gets the work done fast. Steve Boehler would be on my board of directors if I had one.”
Rick Thompson, Retired SVP, Microsoft
The Mercer Island Group