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Growth is the easy part. Attracting and retaining a profitable client base is the real challenge for agencies. As the demand for digital increases, many agencies are offering new services, evolving internal processes, and evaluating alternate revenue and pricing models. In this presentation, Paul Roetzer provides 15 actionable tips to maximize your agency’s profits in the new era of marketing services.

Published in: Marketing


  1. 1. #INBOUND14 the  profitable  agency how  to  a*ract,  retain  and  grow   a  profitable  client  base sept.  16,  2014 presented  by   paul  roetzer  (@paulroetzer)   CEO  |  PR  20/20
  2. 2. of  marketers  think  markeEng  has   changed  more  in  the  past  two   years  than  the  past  50   ! source:  Adobe  Digital  Distress 76% @paulroetzer
  3. 3. the  consumer  is  the  true  change  catalyst @paulroetzer
  4. 4. 90% of  daily  media  interac;ons   are  screen  based source:  Google,  The  New  MulE-­‐Screen  World @paulroetzer
  5. 5. B2B  buyers  may  be     up  to  90%  through  their  journey     before  contacEng  a  vendor.   ! source:  Forrester image:  Jayneandd @paulroetzer
  6. 6. Source:  Google Every  trackable  consumer  acEon  creates  a  data  point,  and   every  data  point  tells  a  piece  of  the  customer's  story @paulroetzer
  7. 7. Source: the  customer  journey  does  not  follow   a  linear  path  defined  by  marketers @paulroetzer
  8. 8. 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 @paulroetzer
  9. 9. Define  FoundaEon  Projects create  more  value,  for  more  people,  more  oDen,     so  when  it’s  Eme  to  choose,     they  choose  you new marketing imperative
  10. 10. what’s  holding  businesses  back  from   achieving  performance  poten;al?
  11. 11. image:  Xurxo  Marcnez talent  gap  +  tech  gap  +  strategy  gap  =  PERFORMANCE  gap @paulroetzer
  12. 12. of  marketers  say  their     lack  of  skills  is  impacEng   revenue  in  some  way   ! source:  2012  MarkeEng  Skills  Gap  Report 75% @paulroetzer
  13. 13. 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 90% @paulroetzer
  14. 14. a  talent  war  has  begun for  tech-­‐savvy,  hybrid  marketers
  15. 15. capable  of  building,  managing  and  execu/ng   fully  integrated  campaigns  that  produce  results @paulroetzer
  16. 16. agile,  adept  at  advanced   marke;ng  tech,  and   experts  in  inbound   strategy @paulroetzer
  17. 17. how  do  we     find  the  unicorns? @paulroetzer
  18. 18. 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
  19. 19. businesses  must  take  the  ini;a;ve  to     mold  their  own  modern marketers @paulroetzer
  20. 20. by  2017,  the  CMO  will  spend  more  on  IT  than  the  CIO.   ! source:  Gartner IT  =  CIO  CMO @paulroetzer
  21. 21. 6  classes,  43  categories,  947  companies
  22. 22. 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 $92  M $95.5M $100  M $871  M $79  M $2.5  B venture  funding,  mergers,  acquisiEons  and  IPOs  fuel   the  martech  industry   @paulroetzer
  23. 23. 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 @paulroetzer
  24. 24. @paulroetzer
  25. 25. generate  leads 86% 85% convert  sales build  brand 46% 51% increase  loyalty brand leads sales loyalty Source:  PR  20/20’s  2014  MarkeAng  Score  Report high-­‐priority  goals @paulroetzer
  26. 26. sample  KPIs website  traffic   social  reach     subscribers lead  volume   lead  quality  score lead-­‐to-­‐sale  conversion  rates   cost  of  customer  acquisi;on  (COCA) customer  life;me  value  (CLV)   customer  reten;on  rates   recurring  revenue brand leads sales loyalty @paulroetzer
  27. 27. source:  Accenture’s  Turbulence  for  the  CMO the  markeEng  industry  is  moving  too  fast     to  internalize  everything
  28. 28. 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) @paulroetzer
  29. 29. 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  MarkeAng  (CMO)  Council   report  More  Gain,  Less  Strain. 9% @paulroetzer
  30. 30. where  do     the  other  91%     turn  for  help? @paulroetzer
  31. 31. growth  is  the  easy  part.   retaining  it,  and  making  it  profitable,   are  the  real  challenges  for  agencies. @paulroetzer
  32. 32. a  cauEonary  tale  of  churn
  33. 33. Define  FoundaEon  ProjectsPR  20/20  growth  (2009) 15  new  campaign  clients   ! $195,000  in  2009  revenue   ! $503,000  in  2010  forecasts
  34. 34. life  is  good!
  35. 35. 0  clients  remain average  relaAonship  lasted  12  months
  36. 36. 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 64% @paulroetzer
  37. 37. 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 @paulroetzer
  38. 38. 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 @paulroetzer
  39. 39. work  with  agency  partners  that     care  as  much  about     performance  and  success     as  you  do @paulroetzer
  40. 40. 15  ways  to     maximize  agency  profits
  41. 41. Source:  HubSpot 1)  prove  performance @paulroetzer
  42. 42. @paulroetzer 2)  develop  scalable  processes  and  services.
  43. 43.    3)  reduce  business  development  Eme.
  44. 44. (remove  despera/on) 4)  achieve  financial  stability.
  45. 45. Define  FoundaEon  Projects 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
  46. 46. 6)  get  paid  for  planning. @paulroetzer
  47. 47. 2006 2008 2010 2014 7)  establish  value-­‐based  pricing. @paulroetzer
  48. 48. 8)  build  brand  and  reputaEon.
  49. 49. 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. @paulroetzer
  50. 50. 10)  arract  and  nurture  entry-­‐level  talent. @paulroetzer
  51. 51. 11)  move  to  campaign-­‐based  contracts. @paulroetzer
  52. 52. image:  Xurxo  Marcnez 12)  fill  talent,  tech  and  strategy  gaps. @paulroetzer
  53. 53. (eliminate  waste) 13)  track  ;me  and  efficiency.
  54. 54. 14)  focus  on  reten;on. @paulroetzer
  55. 55. Speaking   5% Publishing   5% Events   10% Sofware   10% Services   70% 15)  diversify  revenue. @paulroetzer
  56. 56. paul  roetzer,  @paulroetzer   ! CEO  |  PR  20/20   author  |  The  MarkeAng  Performance  Blueprint  (Wiley,   2014)  &  The  MarkeAng  Agency  Blueprint  (Wiley,  2012)   creator  |  MarkeEng  Score  &  MarkeEng  Agency  Insider