It’s that time of year when ad agencies start scrutinizing their business development results and wondering what to do differently in the coming year. Experts predicted this past year would be a breakout year, but many agencies did not reap the benefits. The questions persist. Is it the agency? Is it the process? Is it the person responsible for new business? What should we change? Who should we replace? How do we change? I posted about this before and thought it is an excellent time to revisit.
Many agencies struggle with the same problems; no time, limited resources, uncertainty about where the opportunity is, inconsistent effort, second-guessing services and people, unpredictable pipeline, lack of focus, too many wasted efforts. There is no doubt, finding new clients is hard, and the changing conditions of the marketplace are making it harder. Agencies must embrace the changes and shape their business development approach appropriately. And they can with a little help along the way.
If you are in the planning mode, you are likely to consider three options. The first is your internal BD team. The second is to outsource lead generation. The third is a business development consultant. Each has a broad range of implementations and many resources to choose. Which direction is right for your agency? Let me attempt to simplify it.
An internal BD team
Statistics show that about 39% of agencies have a dedicated BD person or group, and another 44% rely on the owner or president for BD. You can read my survey results; How do other advertising agencies do it. Remember, the average tenure of a BD person is about 18 months. There are reasons for this, mostly the agency’s fault. I know a couple of recruiters who specialize in BD people if you are interested. In my experience, an internal team is the best long-term solution for almost every agency but only if they have a solid foundation in place. And, your internal team can benefit from these other services too.
That foundation includes how well the agency has defined its positioning and prospects. If you can’t explicitly articulate your difference, no matter how talented the BD team, you will never see the results you expect. If you aren’t confident what you offer is different and you can’t demonstrate real success, a consultant can help in those areas. If your prospect list isn’t focused on the right companies, an internal team will waste valuable time and energy pursuing too many opportunities that aren’t successful. Many agency leaders have the wrong expectations for their BD program, and the result can profoundly impact success. That is the primary reason business development people don’t last very long.
If you are confident about these five things, your internal team will be successful.
- I have a good sense of my agency positioning, differentiation, and expertise
- I am confident I know how to articulate the value I offer to marketers
- My staff and leadership are eager to support new opportunities
- I am satisfied with how my agency handles the entire prospect journey
- I know when to say no to a potential opportunity and not afraid to do so
Outsourced lead generation
Statistics show that about 20% of agencies outsource some or all lead generation activities. There are many kinds of Lead generation firms. Some merely work the phones for you. Others set you up with guaranteed meetings. And then there are those who claim to have a list of “ready to buy” relationships just waiting for your call. Many agencies have shared disappointing experiences with lead generation firms. Like any business, some of these are better than others. To complicate matters, the problem might not be the quality of the company but a lack of clear direction by the agency. As I mentioned earlier, if you can’t distinctly articulate your difference, you will never hit your stride.
The more specific and realistic you can be about who your ideal prospect is and why you are a good fit, the better the leads will be. The more you can define who you want and who you don’t, the better the results. And, the more discriminating you are, the less time you will waste. Most of all, don’t be impatient. It will take time and a bit of trial and error for your lead generation firm to hone in on the best leads. Don’t expect consistent results immediately. And be realistic about the number of quality leads. It is always far fewer than you hoped. Remember, three good quality opportunities are much better than thirty who waste your time. When done right, this can be the quickest way to go, but only if you have adequately prepared.
A word of caution. There are a few good firms that specialize in advertising agency lead generation. Many others are industry agnostic and claim their process works for everyone. They sound like they have a great approach, come with lots of references, and claim amazing results. However, ad agency business is very different than enterprise software, HR consulting, or financial services. I’ve heard many stories from agency owners who fell for the sales pitch only to find they wasted their time and money. Make sure you choose a firm that has lots of industry experience and talk to references that are similar to you.
If you are confident about these five things, you can benefit from outsourced lead generation.
- I have a good sense of my agency positioning, differentiation, and expertise
- I am confident I know how to articulate the value I offer to marketers
- I struggle to uncover good prospects
- I can’t get the attention, a call or a meeting
- Once I am in front of the prospect, I am a good closer
Outsourced business development
There are options to consider. Some firms work on agency positioning, staff, and management but don’t get involved in prospecting. They might be the right choice if you believe your people can handle prospecting and closing. Others offer pitch consulting, content strategies, and social media coaching. A good choice if you think your services are in high demand.
There are some who offer complete beginning to end services. According to my survey, only about 17% of agencies consider this option. It is expensive so you must be all in, prepared to assist with people and resources, and committed to getting the full value from this kind of investment. If you are looking for quick wins, this isn’t your best solution. If you are looking for a long-term consistent and predictable solution to agency growth, this is probably your best option. The result of this investment will start you on a path that pays for itself in the years to come.
If you feel your agency might benefit from a full-service consultant, you should be confident that consultant will spend time shaping and fine-tuning your agency positioning and focus your prospect universe before going after opportunities otherwise you will be disappointed once again. Again, If you and your team can’t articulate your difference and your value, allow ample time and patience to go through the steps. Some resources promise to do it all but are nothing more than lead generation shops so do your homework before considering.
If you are confident about these five things, you may want to consider outsourced business development.
- I question my positioning and difference
- I don’t know why I lose to other agencies that I pitch against
- I’m not sure what verticals to go after
- I don’t know how to get a prospect’s attention
- My win rate is less than it should be
There are some hybrid solutions to these three examples. Even though most agencies share common challenges, each is unique in needs and resources. In my experience, the ideal scenario is to start or restart your business development initiative with a consultant first to set the best pat for success. He or she can develop an approach and process that is customized to your agency, refine it in practice and then train and hand off a proven program to an in-house person or team. Once it is up and running with a pipeline to manage, an internal BD team should take over without interrupting the flow of new opportunities and future prospects in your pipeline.
Happy hunting!
I’ve got a lot more ideas about how you can position your agency for success, and I would enjoy sharing them with you. If you want to talk about your business development program, I’m always open to a conversation. If you like this post, click the thumbs up, so I’ll know and then sign up for my new business newsletter. Follow me on Twitter and LinkedIn for daily tips, tricks, and insights. #LetsGrow!
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