From: Eric Morley (Blue C) [mailto:emorley@bluecusa.com]
Sent: Tuesday, March 24, 2009 3:41 PM
To: Hank Blank
Subject: Thought you may enjoy this article
Fishing in troubled waters:
There is a renewed focus on new business, but most agencies have no system
for sustained business development and few staff skilled in new business.
What was done a couple of years ago no longer works. The troubled water is
changing everything. You have probably been frustrated by first-hand
experience with all of these changes; but opportunities for new business are
abundant for advertising agencies that are prepared.
We believe there is no better time to do new business than times like these;
when clients are changing how they spend, when your competition is worrying
about staying in business, when companies are changing agencies at an
unprecedented rate, and when prospects want to make decisions that enable
them to solve immediate challenges. Doing new business now is like fishing
in troubled water. Most people don't even go out - but that's also when the
pros know fishing is best. While others stay home, the smart ones go
fishing.
Earlier I posted a question to see what agency types are doing to get new
business. Now I present a few thoughts on what steps should you take in
times like this... Here are six strategies we recommend.
First, make sure your firm is properly branded. Check to see if you are
caught up in alphabet soup with a brand that doesn't say anything. Clients
who are looking for a new agency don't want a "we-are-whatever-you-need"
advertising firm. In fact, that turns them off and harms trust. At a recent
new business conference hosted by the AAAA, every client and search
consultant said "stand for something." You have to know who you are and why
you should be considered. Otherwise, you risk fading into the fog of
marketing services lingo. It is better to stand for something and not be
considered for one account then to stand for nothing and not be considered
for any accounts.
Second, focus on generating leads. That means increasing the number of
opportunities to go visit good prospects. Too many agencies only focus on
winning pitches, not working to get into more pitches. Beware of the "we'll
win the next pitch" red herring. This is where an agency is busy pitching
but not focused on creating awareness and relationships. Unless you are a
recognized agency brand (and there are only about 10 in the US), counting on
referrals and word of mouth is not a new business program. Many agencies
have attempted to flip a new business switch - "we need some new business
NOW! Let's form a committee!" Few are finding success.
Third, sell smarter. Focus on the overt benefits you offer. Make it clear
what you do why and how it gets results. Successful agencies do this
face-to-face, not by clicking PowerPoint slides at a prospect with lots of
case histories and marketing babble. Stop doing capability presentations!
Instead show them how you work, specifically with their brand, and how you
will impact their business. This means that you have to work hard and listen
to understand their problem. This sounds simple, yet it is one of the most
common problems in all client/agency relationships.
Fourth, be easy to do business with. Don't try to sell what clients don't
want to buy. Give your opinion, offer suggestions, but be sure to give them
what they are asking for. If they want the logo larger, make it larger and
move on. Forget about account planning and stop trying to get clients to pay
for it. If you are in a tactical position, play the tactical game better and
build trust. Only then can you move up the marketing ladder and start
recommending more strategic advice.
Fifth, think about growing the old fashioned way - buy growth. A cross-town
merger with another firm in your market can create a wealth of
opportunities. There are some good opportunities in every market. You can
gain efficiencies and add new services and resources, and create more
awareness for your brand.
Finally, go after the consultants and the strategic high ground by offering
consulting services of your own. This requires a separate brand that is not
linked to advertising or marketing. Too many agencies forget that if you're
an agency, and try to add consulting to your brand, you are still only an
advertising agency -Where are my ads! However, if you are a consulting firm,
then you can work at the strategic "C" level, and open up a sizable new
revenue stream. This provides more opportunities for the agency side to
follow once the consulting assignment is completed. Search consultants are
saying new business is slow. They're wrong. Their business is slow. New
business is heating up. The competitive landscape for agencies has been
forever changed. As the economy recovers and picks up speed, you will need
to adapt to win today and change to succeed in the future.
Bob Sanders is President of Sanders Consulting Group.
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