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5 Biggest Mistakes Agencies Make Going After New Business...Sep 05, 2016  · 5 . Source: RSW/US;...

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  • 5 Biggest Mistakes Agencies Make Going After New Business

    1

  • 2

    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

    3

    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

    4

  • Agencies Typically Talk About Themselves First

    5

    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

    6

  • 7

    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

    8

  • CMOs Must Prove Business Value

    9

    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?

    10

    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

    12

    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

    13

  • Competition is Getting Tougher

    14

    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

    15

    …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

  • 17

  • 18

    Interaction Process

    Agency Philosophy

    Strategic Insight Process

  • Mistake #4: Under-emphasis on Current Clients

    19

  • 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%

    1

    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

    21

    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

    22

    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

    23

    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

  • 25

    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…

    1

    2

    3

    Source: Mercer Island Group

  • Mistake #5: No Strategic Marketing Plan

    26

  • Agency Growth Plans Often Start In A Hole

    27

    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:

    29

    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

    30

  • Clear & Complete Websites

    31

    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

    33

  • Addressing the 5 Biggest Mistakes

    34

    Address their business issues

    Distinctive agency positioning

    Emphasize current clients

    Strategic marketing plan

    Focus on the prospect

    Source: Mercer Island Group

  • 35

    “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

  • 36

    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

    [email protected]

    Robin Boehler

    [email protected]

    mailto:[email protected]:[email protected]

  • Appendix:

    Introduction to Mercer Island Group

    37

  • 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

  • 39

    Our vision is to help organizations

    succeed beyond their wildest dreams

    by engaging deeply and personally in

    what matters most.

  • 40

    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

  • 41

    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.

  • 42

    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

  • 43

    Acclaimed “Agency” Expertise

  • 44

    Some Agencies We’ve Helped

    http://www.twowest.com/index.htmlhttp://www.inc.com/magazine/20090301/the-wexley-way.html

  • 45

    Clients: Consumer & Retail

    http://www.cwtv.com/http://www.google.com/imgres?imgurl=http://www.allthefunin1.com/resources/kindercare_logo.jpg&imgrefurl=http://www.allthefun.org/3.html&h=197&w=200&sz=10&tbnid=fyMbkxr-Vp8p0M:&tbnh=102&tbnw=104&prev=/images?q%3Dkindercare%2Blogo&usg=__BzyG5nhU02jVoA96eV0TcqZg_vo=&ei=oUToS-bEDIqeswOM_YSjCQ&sa=X&oi=image_result&resnum=1&ct=image&ved=0CBoQ9QEwAAhttp://www.google.com/imgres?imgurl=http://www.allthefunin1.com/resources/kindercare_logo.jpg&imgrefurl=http://www.allthefun.org/3.html&h=197&w=200&sz=10&tbnid=fyMbkxr-Vp8p0M:&tbnh=102&tbnw=104&prev=/images?q%3Dkindercare%2Blogo&usg=__BzyG5nhU02jVoA96eV0TcqZg_vo=&ei=oUToS-bEDIqeswOM_YSjCQ&sa=X&oi=image_result&resnum=1&ct=image&ved=0CBoQ9QEwAAhttp://www.google.com/imgres?imgurl=http://www.allthefunin1.com/resources/kindercare_logo.jpg&imgrefurl=http://www.allthefun.org/3.html&h=197&w=200&sz=10&tbnid=fyMbkxr-Vp8p0M:&tbnh=102&tbnw=104&prev=/images?q%3Dkindercare%2Blogo&usg=__BzyG5nhU02jVoA96eV0TcqZg_vo=&ei=oUToS-bEDIqeswOM_YSjCQ&sa=X&oi=image_result&resnum=1&ct=image&ved=0CBoQ9QEwAAhttp://www.allthefunin1.com/resources/kindercare_logo.jpghttp://www.aviemorewalking.com/graphics/diageo.jpghttp://www.google.com/imgres?imgurl=http://www.gentec-intl.com/GentecInc/HR/LOGOS/Bushnell%20Logo.jpg&imgrefurl=http://www.gentec-intl.com/Default.asp?frm%3Dfld%26mode%3Dhri%26fld%3DLOGOS&h=371&w=1200&sz=144&tbnid=td-SU9m3yhQ1LM:&tbnh=46&tbnw=150&prev=/images?q%3DBushnell%2Blogo&usg=__jNSpUGy7pTHcGYL__D-5vnO1SM4=&ei=gEjoS_7BFpLYsQO49M3SCA&sa=X&oi=image_result&resnum=1&ct=image&ved=0CBcQ9QEwAAhttp://www.google.com/imgres?imgurl=http://www.gentec-intl.com/GentecInc/HR/LOGOS/Bushnell%20Logo.jpg&imgrefurl=http://www.gentec-intl.com/Default.asp?frm%3Dfld%26mode%3Dhri%26fld%3DLOGOS&h=371&w=1200&sz=144&tbnid=td-SU9m3yhQ1LM:&tbnh=46&tbnw=150&prev=/images?q%3DBushnell%2Blogo&usg=__jNSpUGy7pTHcGYL__D-5vnO1SM4=&ei=gEjoS_7BFpLYsQO49M3SCA&sa=X&oi=image_result&resnum=1&ct=image&ved=0CBcQ9QEwAAhttp://www.topnews.in/files/bayer-logo.gifhttp://1.bp.blogspot.com/_X7igbyFfqhw/SbqKHRNr_cI/AAAAAAAABCg/BRixfxF8bpQ/s400/Coinstar+logo.jpghttp://www.kaiserpermanente.org/

  • 46

    Clients: Telecom, Cable, Internet

    http://www.lifetimetv.com/index.htmlhttp://www.cwtv.com/http://www.nokiausa.com/indexhttp://www.uscellular.com/http://www.google.com/imgres?imgurl=http://2.bp.blogspot.com/_aA4TaCqqi_8/SWMNrcNvMPI/AAAAAAAAAcw/lqXri2lG8tA/s200/Qwest-Logo.jpg&imgrefurl=http://lowercasel.blogspot.com/2008/12/qwest-for-l.html&h=93&w=129&sz=4&tbnid=AygN-_GGblKQBM:&tbnh=66&tbnw=91&prev=/images?q%3Dqwest%2Blogo&hl=en&usg=__6JFysMcZPea49GzkC25MJRS_G3I=&ei=WQTKSuSCGY2yswP979ChBQ&sa=X&oi=image_result&resnum=3&ct=imagehttp://www.google.com/imgres?imgurl=http://www.iphonekiller.fr/wp-content/uploads/2009/08/htc-logo.jpg&imgrefurl=http://www.iphonekiller.fr/category/htc/&h=162&w=400&sz=7&tbnid=MD7rwHHDOvyRwM:&tbnh=50&tbnw=124&prev=/images?q%3Dhtc%2Blogo&hl=en&usg=__DNRNpiPN-3D5pB31dOtOaATJhFM=&ei=AgXKStXRE4LKsQO14aSiBQ&sa=X&oi=image_result&resnum=4&ct=imagehttp://www.google.com/imgres?imgurl=http://techtickerblog.com/wp-content/uploads/2009/02/qualcomm-logo.jpg&imgrefurl=http://www.techtickerblog.com/2009/02/14/qualcomm-chipset-will-make-sub-150-phones-faster-better/&h=200&w=350&sz=8&tbnid=U_31zip2WOzVqM:&tbnh=69&tbnw=120&prev=/images?q%3DQualcomm%2Blogo&hl=en&usg=__17pbIwW-1pbxhtVRe0PuuLGLlQM=&ei=4h3OSoiZMIiAswPty_3HDg&sa=X&oi=image_result&resnum=3&ct=imagehttp://www.infospaceinc.com/http://www.charter.com/http://www.maximumpc.com/files/u58308/TimeWarnerCable_Logo.jpg

  • 47

    Clients: Technology

    http://www.nokiausa.com/indexhttp://www.google.com/imgres?imgurl=http://www.iphonekiller.fr/wp-content/uploads/2009/08/htc-logo.jpg&imgrefurl=http://www.iphonekiller.fr/category/htc/&h=162&w=400&sz=7&tbnid=MD7rwHHDOvyRwM:&tbnh=50&tbnw=124&prev=/images?q%3Dhtc%2Blogo&hl=en&usg=__DNRNpiPN-3D5pB31dOtOaATJhFM=&ei=AgXKStXRE4LKsQO14aSiBQ&sa=X&oi=image_result&resnum=4&ct=imagehttp://www.google.com/imgres?imgurl=http://techtickerblog.com/wp-content/uploads/2009/02/qualcomm-logo.jpg&imgrefurl=http://www.techtickerblog.com/2009/02/14/qualcomm-chipset-will-make-sub-150-phones-faster-better/&h=200&w=350&sz=8&tbnid=U_31zip2WOzVqM:&tbnh=69&tbnw=120&prev=/images?q%3DQualcomm%2Blogo&hl=en&usg=__17pbIwW-1pbxhtVRe0PuuLGLlQM=&ei=4h3OSoiZMIiAswPty_3HDg&sa=X&oi=image_result&resnum=3&ct=imagehttp://www.infospaceinc.com/http://www.nintendo.com/homehttp://welcome.hp.com/country/us/eng/welcome.htmlhttp://www.google.com/imgres?imgurl=http://www.sapsapphire.com/usa2008/newsroom/imagegallery/images/sap_logo.jpg&imgrefurl=http://www.sapsapphire.com/usa2008/newsroom/imagegallery/index.htm&h=1264&w=2507&sz=207&tbnid=Pg83oTgs8IXABM:&tbnh=76&tbnw=150&prev=/images?q%3DSAP%2Blogo&hl=en&usg=__Zl8d5iz4gvZ7sIq-HSSjT2vI54g=&ei=FRjOSpuDFaLOtAOa06m2Dg&sa=X&oi=image_result&resnum=1&ct=imagehttp://moconews.net/image/big/flo-tv-logo/http://www.kiha.com/http://www.nfsmi.org/adobe-logo.jpg

  • 48 48

    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

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