How To Stop The Churn.
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- Hester Jacobs
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1 VAR THE ART & SCIENCE OF SELLING AGENCY SERVICES: How To Stop The Churn. Paul Roetzer, Founder & CEO,
2 Please rate this session! #inbound12
3 PAUL Paul Roetzer Founder & CEO, PR 20/20 Author of The Marketing Agency Blueprint #inbound12
4 growth is the easy part. retaining it, and making it profitable, is the real challenge for agencies.
5 A Cautionary Tale of Churn
6 PR 20/20 New Campaign Clients (2009) 15 new campaign clients $195,000 in 2009 revenue $503,000 in 2010 forecasted revenue
7 life is good!
8 1 client remains
9 avg. client relationship = 11 months Image Credit: Hollywood_PR
10 49% of marketers report they will consolidate or change agencies over the next 12 months. another 15% aren t sure. #inbound12 Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.
11 only 36% of marketers are firmly committed to their agency relationships. #inbound12 Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.
12 Churn Factors agency side Over promise and under deliver Focus on outputs, not outcomes Talent turnover Weak processes Financial instability Stretched too thin Stagnant business model Siloed services
13 Churn Factors client side Unrealistic expectations Weak foundation Poor management Lack of vision Bad product Financial instability Short-term focus Marketing technology utilization Conservative business practices Sales/marketing team strength Personnel changes Merges & acquisitions
14 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)
15 The Red Zone monitor and grade client portfolio health 45% of recurring revenue is at risk to churn
16 Choose the Right Clients Commit 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 sales.
17 #inbound12 make retention the priority.
18 1) assess strengths and forecast potential. 2) offer integrated services. 3) benchmark performance. 4) connect actions to audiences and KPIs. #inbound12
19 1) Success Starts with the Assessment
20 PR 20/20 Inbound Marketing Survey 175+ audits completed
21 challenges with the current process Time intensive Requires high-level personnel to analyze Lacks scoring system and visualizations Not a true assessment of success potential Fails to properly set expectations Not scalable
22 A More Intelligent Process & Platform subjective 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.
23 Net Marketing Score Every element of an organization, as it relates to marketing, can be divided into: assets, neutrals and
24 Net Marketing Score By evaluating and scoring these elements, an organization can devise marketing strategies; allocate the time, money and talent; and adapt resources and priorities based on performance.
25 Net Marketing Score: Model Marketing Manager Section NMS =
26 Net Marketing Score: Model CEO Section NMS =
27 Business Fundamentals Business life cycle stage Competitive advantage Financial stability Growth goals Leadership team Pricing strategy Product/service
28 Marketing Foundation Brand awareness Internal inbound competencies Lead sources Marketing/sales integration Marketing technology utilization Reach Website
29
30 2) Offer Integrated Services
31 Published January 2010
32 Published July 2010
33 80% of chief marketing officers think integrated services will increase in importance over the next five years, according to a study by The Horn Group and Kelton Research.
34 however, in the same study, 60% of CMOs indicated that they are unable to find an integrated firm to meet those needs.
35 only 9 percent of senior marketers believe traditional ad agencies 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) Councilreport More Gain, Less Strain.
36 There s an underlying level of frustration among senior corporate marketers worldwide when it comes to agency contributions to business value creation, strategic thinking, and digital marketing development. Donovan Neale-May, Executive Director, CMO Council
37 The New Marketing Services Mix Search Social Content Web Mobile Brand PR Digital advertising Analytics Tech integration App development
38 3) Benchmark Performance
39 Build Custom Scorecards establish expectations.
40 52% of senior marketers do not have a formal scorecard for rating agency performance on an annual basis. #inbound12 Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.
41 4) Connect Actions to Audiences & KPIs
42 Deliver Results let performance tell your story.
43 Client Services Series: The Case of a Hypothetical B2B Account (Coming in October 2012) 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) promo code: inbound15
44 breakups sucks. 4 steps to stop the churn.
45 1) assess strengths and forecast potential. 2) offer integrated services. 3) benchmark performance. 4) connect actions to audiences and KPIs. #inbound12
46 #inbound12 thank you.
47 HOW D I DO? Please rate this session! #inbound12
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