How To Stop The Churn.

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THE ART & SCIENCE OF SELLING AGENCY SERVICES:

How To Stop The

Churn.

VAR

Paul Roetzer, Founder & CEO, PR20/20

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Please rate this session!

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#inbound12

Paul

Roetzer

Founder & CEO,

PR 20/20

Author of

The Marketing

Agency Blueprint

@

paulroetzer

PAUL

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growth is the easy part.

retaining it

, and

making it profitable

,

is the real challenge for agencies.

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A Cautionary Tale of Churn

@PaulRoetzer #Inbound12

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PR 20/20 New Campaign Clients (2009)

‣

15 new campaign clients

‣

$195,000 in 2009 revenue

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life is

good

!

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avg. client relationship =

11 months

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49% of marketers report they will

consolidate

or change agencies over the next 12 months.

another 15% aren t sure.

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#inbound12

only 36% of marketers are firmly committed to

their agency relationships.

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Churn Factors

‣

Over promise and under deliver

‣

Focus on outputs, not outcomes

‣

Talent turnover

‣

Weak processes

agency side

‣

Financial instability

‣

Stretched too thin

‣

Stagnant business model

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Churn Factors

‣

Unrealistic expectations

‣

Weak foundation

‣

Poor management

‣

Lack of vision

‣

Bad product

‣

Financial instability

client side

‣

Short-term focus

‣

Marketing technology utilization

‣

Conservative business practices

‣

Sales/marketing team strength

‣

Personnel changes

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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

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45% of recurring revenue is at risk to churn

The Red Zone

monitor and grade client portfolio health

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‣

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.

Choose the Right Clients

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#inbound12

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1) assess

strengths

and forecast

potential

.

2) offer

integrated services

.

3) benchmark

performance

.

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1) Success Starts with the Assessment

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PR 20/20 Inbound Marketing Survey

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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

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‣

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.

‣

A More Intelligent Process & Platform

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Net Marketing Score

Every element of an organization, as it relates to marketing, can be divided into: assets, neutrals and escalators.

@NMScore #Inbound12

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Net Marketing Score

By evaluating and scoring these elements, an organization can devise marketing strategies; allocate the time, money and talent; and adapt

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Net Marketing Score: Model

@NMScore #Inbound12

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Net Marketing Score: Model

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Business Fundamentals

‣

Business life cycle stage

‣

Competitive advantage

‣

Financial stability

‣

Growth goals

‣

Leadership team

‣

Pricing strategy

‣

Product/service quality @NMScore #Inbound12

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Marketing Foundation

‣

Brand awareness

‣

Internal inbound competencies

‣

Lead sources

‣

Marketing/sales integration

‣

Marketing technology utilization

‣

Reach

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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.

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however, in the same study, 60% of CMOs

indicated that they are unable to find an

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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!

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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.

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‣

Search

‣

Social

‣

Content

‣

Web

‣

Mobile

‣

Brand

The New Marketing Services Mix

‣

PR

‣

Digital advertising

‣

Email

‣

Analytics

‣

Tech integration

‣

App development

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Build Custom Scorecards

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52% of senior marketers do not have a formal scorecard for

rating agency performance on an annual basis.

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4) Connect Actions to Audiences & KPIs

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Deliver Results

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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)

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breakups sucks.

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#inbound12

1) assess

strengths

and forecast

potential

.

2) offer

integrated services

.

3) benchmark

performance

.

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#inbound12

HOW’D I DO?

Please rate this session!