The economy is up. Businesses are expanding. Marketing spending is on the rise. If you do not see an increasing number of leads, it may be time to pivot toward the sectors that are driving the economic boom. Not every industry is feeling confident yet. But many are. You should think about how your agency, given its experience and capabilities, can get in on the action of a booming economy today before the spoils are all divided. All the prospects aren’t gone. They’ve just shifted with the economy, at least until the robots take over. Ever wonder how you’ll pitch a robot? That’s a topic for another post.
Let’s face it. There is a bit of trepidation in the market right now, a feeling that stems from the tough years behind us. Perhaps a political bias. Skepticism whether this current economic growth is sustainable; things are going to crash sooner or later, maybe sooner, so I better remain cautious. A recent roundtable of top-tier company CMOs echoed this cautious sentiment. Every day you read some economic pundit warn of an imminent collapse. Your prospects read the same news and aren’t sure whether to spend or hold. But not everyone.
Consumers aren’t fooled. They are spending on both B2B and B2C. Personal income has been increasing for months as wages and salaries continue to rise. Business is benefiting as well. Real gross domestic product (GDP) increased 3.2 percent in the first quarter of 2019, according to the Bureau of Economic Analysis, and has been steadily increasing month after month. U.S. manufacturing is forecast to rise even faster than the general economy. The MAPI Foundation predicts production will grow by 3.9% in 2019. Despite some naysayers, the circumstances that drive marketing budgets are booming.
If you haven’t already, it’s time to take a serious look at your new business strategy. The data confirms that markets are growing, ad budgets are increasing, and companies are spending. There are three things you should do right now to take advantage of this new economy. Pivoting does have its challenges like a lack of specific experience. When considering a new vertical without direct experience, look at work you’ve done in peripheral categories, for the same kind of audience, and for the same kinds of challenges using as similar a category or product as you can. Snack cakes might be a stretch for the real estate category unless it's millennial Moms as first-time home buyers that you can relate to family snacks.
Focus on the right markets
Not everyone feels this way. While some sectors are booming, others are still struggling. According to Investopedia, the five key industries that are driving the economy are Healthcare, Technology, Construction, Retail, and Non-durable Manufacturing. According to The Motley Fool, Beverages, Mining, Civil Engineering, DTC, E-commerce, Real Estate, are others. Each of these has enormous ecosystems supporting them which are growing as well. I'm sure you can find others with a little research. Like any marketplace, even in the best of times, some are doing well and others not so much. If your agency isn’t aiming your business development efforts on these sectors, you may be missing out.
Focus on the right prospects
In any industry, you have the leaders and the challengers. In this economy, the leaders are likely to be more cautious while the challengers are focused on exploiting the growth. Look at industry reports to find those who are aggressive, who are challenging the leaders, announcing new plans, or reporting industry-beating forecasts. These companies likely have agency resources but are always looking for better solutions and better results. Focus your business development on the companies where you can demonstrate experience and knowledge of their business, their customers, and their challenges. You can be confident they are spending and on the lookout for new ideas and innovative ways to gain share and customers while their market grows.
Communicate the right message
Is your message about services and capabilities? These prospects are trying to capture a more significant share as their competitors remain cautious. They are looking for solutions, not capabilities, results, not processes, new ideas, and old ideas that drive results fast to take advantage of their agility and initiative. Messages about growth, customer acquisition, beating competitors, and novel ways to gain share are more appealing. Innovation, new ideas, unexpected tactics, better positioning, are the solutions aggressive challengers are seeking. If you can get their attention to things that will help them grow, your services and capabilities will be a foregone conclusion.
While you pivot, don’t abandon your core markets. It is likely that all markets will become more aggressive as the economic boom continues. Stay vigilant. Look for news and other indicators that may signal new spending and strategy shifts from those companies. As an expert in those core categories, you and the agency should brainstorm on new ideas and approaches that will capture the attention of those companies that wake up to the new potential.
I’ve got a lot of advice on how to make your business development efforts more effective and would enjoy sharing what I know. If you like this post, click the thumbs up, so I’ll know, and then sign up for my new business newsletter. Find me on LinkedIn for daily tips, tricks, and insights. And, please share your new business advice, successes, and failures. #LetsGrow!