the profitable agency: how to attract, retain and grow a profitable client base

#INBOUND14

the profitable agencyhow to a*ract, retain and grow a profitable client base

sept. 16, 2014

presented by paul roetzer (@paulroetzer) CEO | PR 20/20

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

the consumer is the true change catalyst

@paulroetzer www.pr2020.com#inbound14

90% of daily media interac;ons are screen basedsource: Google, The New MulE-‐Screen World

@paulroetzer

B2B buyers may be

up to 90% through their journey before contacEng a vendor. !source: Forrester

image: Jayneandd

Source: Google

Every trackable consumer acEon creates a data point, and every data point tells a piece of the customer's story

Source: Chiefmartech.com

the customer journey does not follow a linear path defined by marketers

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

create more value, for more people, more oDen, so when it’s Eme to choose,

they choose you

new marketing imperative

what’s holding businesses back from achieving performance poten;al?

image: Xurxo Marcnez

talent gap + tech gap + strategy gap = PERFORMANCE gap

a story about the convergence of marke;ng talent, technology and strategy, and the opportunity to build performance-‐driven businesses.

of marketers say their lack of skills is impacEng revenue in some way !source: 2012 MarkeEng Skills Gap Report

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

a talent war has begun

for tech-‐savvy, hybrid marketers

capable of building, managing and execu/ng

fully integrated campaigns that produce results

agile, adept at advanced marke;ng tech, and experts in inbound strategy

how do we find the unicorns?

@paulroetzer

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

businesses must take the ini;a;ve to mold their own modern marketers

by 2017, the CMO will spend more on IT than the CIO. !

source: Gartner

IT = CIO CMO

6 classes, 43 categories, 947 companies

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

$95.5M

$100 M

$871 M

$2.5 B

venture funding, mergers, acquisiEons and IPOs fuel the martech industry

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

source: Accenture’s Turbulence for the CMO

the markeEng industry is moving too fast to internalize everything

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)

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 Marke9ng (CMO) Council report More Gain, Less Strain.

where do the other 91% turn for help?

growth is the easy part. retaining it, and making it profitable, are the real challenges for agencies.

a cauEonary tale of churn

Define FoundaEon ProjectsPR 20/20 growth (2009)

15 new campaign clients !

$195,000 in 2009 revenue !

$503,000 in 2010 forecasts

life is good!

0 clients remain

average rela9onship lasted 12 months

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

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

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

work with agency partners that care as much about

performance and success as you do

15 ways to maximize agency profits

Source: HubSpot

1) prove performance.

@paulroetzer www.pr2020.com

2) develop scalable processes and services.

3) reduce business development Eme.

(remove despera/on)

4) achieve financial stability.

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

6) get paid for planning.

7) establish value-‐based pricing.

@paulroetzer

8) build brand and reputaEon.

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.

10) arract and nurture entry-‐level talent.

11) move to campaign-‐based contracts.

image: Xurxo Marcnez

12) fill talent, tech and strategy gaps.

(eliminate waste)

13) track ;me and efficiency.

14) focus on reten;on.

Speaking 5%

Publishing 5%

Events 10%

Sofware 10%

Services 70%

15) diversify revenue.

paul roetzer, @paulroetzer !CEO | PR 20/20 author | The Marke9ng Performance Blueprint (Wiley, 2014) & The Marke9ng Agency Blueprint (Wiley, 2012) creator | MarkeEng Score & MarkeEng Agency Insider

www.pr2020.com

the profitable agency: how to attract, retain and grow a profitable client base

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