The ABC of enhancing profits by building your reputation
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1 Creating a reputation Page 1 of 5 The ABC of enhancing profits by building your reputation Have you encountered any well-known brands that have retained an agency on a regular basis, even though you (and probably they) know that the agency is not the best for them, and, given half a chance you could do a much better job? Have you ever wondered why some agencies still keep winning pitches when they overprice and under-deliver? Somehow you know it is not right, but you cannot put your finger on why. Well, we have the answer. They don t trust you enough to give you the work. So all your hard work spent developing your pitch was wasted. Here is how you can go about changing things to your advantage. The secret of reputation It s all about reputation. Great agencies promote their reputation by who they are, what they do, who they work for and, as importantly, who they do not work for. They have worked out the secret of what makes it easy for clients and potential clients to trust them. As a result they always get selected. Ponder this well-known marketing maxim: In any market where the number of choices is high and the risks of getting it wrong are also high, the more established, trusted or reputable suppliers will win more business. Put yourself in the client s position and ask yourself what you would do if you were faced with a huge array of suppliers, many of whom seem to offer the same service, and your job is on the line if you make the wrong choice. Reputation in practice Simple! You would opt for an established, trusted, reputable agency. The emphasis is on being established. Once you are in it takes an enormous amount of effort for a marketing team to change their agency. The odds are usually stacked against you replacing the incumbent supplier. So what can be done to reverse this situation? How can you stand out from the crowd and get in front of more clients? What you do is build a reputation that makes you stand head and shoulders above the rest. Marks & Spencer, one of the great British brands, experienced a severe slump in the late 90s. The slump took almost everyone by surprise. This venerable brand had all the hallmarks of success. Then, without warning, the share price plummeted by almost two thirds, with profits down by over a billion pounds.
2 Creating a reputation Page 2 of 5 The competition saw that the darling of the High Street was wounded, perhaps mortally. This was their big opportunity to win over the highvalue individuals that shopped at M&S! So they launched strategic and tactical initiatives to kill off M&S. Did their strategies work? Well, look at M&S today and you will see that they failed. They failed because M&S took actions to reinstate their brand values and rebuilt their reputation. It took time and a few CEOs along the way, but they pulled M&S back from the brink. M&S knew what they stood for quality and value for money. They also learnt their lesson: be totally fixated on the customer and what they want. Even during the toughest times, M&S s reputation ensured they kept a band of loyal followers. These people knew that M&S would not let them down, and they stayed loyal. The plethora of High Street brands, competing for their attention and money, failed to dislodge this band of diehards. That is the power of reputation! Build a reputation that clinches deals Building a trusted reputation is not easy or quick. However, with a bit of effort, there are some changes you can make to make a significant impact. Here are a few ideas on building a reputation that lasts. Filter your clients Build a reputation in the target market in which you can deliver expertise. Only pitch for clients that you really want to work with. Don t pitch for everything. That way you concentrate on making sure that your existing and new clients deliver exceptional value to your agency. Prove expertise Make sure that you can demonstrate real expertise in your key areas and that clients understand the added value your expertise can bring. Consider this. If the client is willing for you to pitch, then they must know that you are capable of doing the work. So why spend any time and effort trying to convince them again? Rather use your credentials and trophy clients to demonstrate your expertise and make them pay for the creative work. Be an expert Promote yourself as an expert or a consultant rather than simply as an agency. After all, it is usually at the initial ideas stage that much of the value is created. The implementation phase is much less profitable. And yet, very few agencies manage to get any financial return on the
3 Creating a reputation Page 3 of 5 creative phase of the client relationship. They see this as the price they have to pay to get the client to buy into them. Find your niche Rather than promoting yourself as a generalist, home in on one aspect of what you can offer and promote it passionately. For instance, rather than having a name as just a PR agency, why not focus in on one aspect of PR such as hi-tech PR? Whiteoaks of Farnham do this, and they are now reaping the rewards of this focused approach. Be fixated on delivering what your clients want Loyalty is a historic concept. We are only as good as our last piece of work. If we foul up, then we could be out on our ear no matter how good our reputation and the historic relationship have been. The only way to reduce the chance of the client asking for an agency review is to have in place a client relationship programme that works. Take the time and effort to review your clients view of your performance. Be proactive So much additional work could be gained with existing clients if you only asked for it. In my previous existence as a marketing manager, I was amazed at how few times the agencies that worked for us took the time and trouble to work out what my problems might be and how they might solve them. It was typically Anything else we can help you with? The easiest answer and one that I gave out too often was Err No thanks. Focus on your key clients and ensure that all the relevant data on them is available. Where necessary take an active participative role in developing them. Build your network Find good-quality trusted advisors, acquaintances and friends. These are the people that have contacts that might just be able to get you past the gate keepers. Know the three Rs of new business lead generation: repeat, recommendation and referral. Don t be embarrassed to ask your network of acquaintances to help gain an introduction. You will be amazed how many people are out there looking for good people, and who are all too willing to refer you in. It builds their reputation and extends their network of contacts. The ABC of building a profitable reputation I hope you are now champing at the bit to craft a reputation that generates profitable, sustainable business in the long term. So where do you start? Our experience in helping accelerate growth in the agency sector is to start with your vision. As a business owner or leader it is your responsibility to ensure that
4 Creating a reputation Page 4 of 5 everyone knows what you stand for as a business. Google has just one word with which it wants to be synonymous. That word is Search. They will only do something that is directly search related. Have a look here if you want more information on how to develop a vision. When you have crafted your vision, you are ready to work through the ABC of reputation building. A = Activities High-growth companies are hives of activity. They are doing orientated. They get it right. They do the right things with the right people, to the right customers, at the right price, in the right place, at the right time. Have a good hard look at what you do and get it right every time. Try asking your clients and your staff for their feedback. B = Brand High-growth companies recognise the value of their brand. They cherish it and nurture it. They know that it takes time to build a strong brand but only a few moments to destroy it. It has lasting value that ensures a legacy to future employees and clients. Everything they do adds value to their brand and their reputation. So ensure your brand is consistently applied at every touch point with the world at large. C = Corroboration High-growth companies have evidence to corroborate their brand and expertise. They have easily recognised trophy clients. They advertise their successes and promote their expertise through the skilful use of testimonials, reviews, articles and PR. Reputation is as simple as ABC. Now you just have to make it work. Consultrix
5 Creating a reputation Page 5 of 5 Expert help when you need it most If you found that useful, please let us know. If you get stuck or want some friendly advice, please call Consultrix on or tips@consultrix.co.uk We enjoy hearing about success and what interesting ideas there are out there. So please do make contact.
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