In our 2023 Agency New Business Report, we asked agencies what they considered to be the most effective tools at generating new business.
Continuing the trends from 2021 and 2022, new business to date in 2023 has come from referrals and existing clients.
Both of these sources should be part of your business development program, but more than in previous years, we’re seeing agencies report these as less reliable in 2023.
Referrals came in as the number one new business generator at 69%, with Business from existing clients at 50%, and Networking at 46%. For reference, in 2022, Referrals come in
at 64%, Business from existing clients at 59%, and Networking at 46%.
So the actual percentage on referrals is higher this year by 5 points, which is interesting, given what agencies have already reported more than once, some version of referrals
starting to dry up in 2023 versus past years.
Most Effective Tools At Generating New Business: Referrals Win Again
Referrals came in as the number one new business generator at 69%, with Business from existing clients at 50%, and Networking at 46%. For reference, in 2022, Referrals come in
at 64%, Business from existing clients at 59%, and Networking at 46%.
So the actual percentage on referrals is higher this year by 5 points, which is interesting, given what agencies have already reported more than once, some version of referrals
starting to dry up in 2023 versus past years.
And as far as existing business, quotes like the following from a previous question should raise some concern:
It is difficult to motivate employees to do consistent follow up with prospects.
Quotes like these, to be fair, are not widespread, but if you find yourself in this situation, it needs to be addressed, and treating new business as agency-wide is the first
step.
When it comes to tools, focus is all-important.
Your firm doesn’t need all the tools, and especially for small and mid-sized firms, there’s not enough time to use them all.
Typically you have a great majority of the core tools already in place: phone, email, social, for example.
Beyond that, an email delivery tool, some form of tracking for those emails (and ideally on your site) and then potentially a CRM, which you ultimately will need for any serious business development effort.
Tools like ChatGPT, which we discuss further in our report, should certainly be on your radar, for your agency and your clients, and could be very helpful to your overall effort.
And as a side note, the majority of numbers in this question stayed relatively the same compared to last year’s report with one exception:
Conferences as a tool to drive new business came in at 15% in 2022, versus this year at 28%-quite a jump!
Anecdotally, we can convey conversations with agencies, client and non-client, who report finding conferences coming back post-covid in a meaningful way.
The key is zeroing in on a tight group, and having a plan in place pre-conference, and most importantly, post-conference for prospecting.
https://www.rswus.com/wp-content/uploads/2023/11/Most-Effective-Tools-At-Generating-New-Business-1.jpg500500Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2024/09/RSWUS-Professional-Services-Dark-1.pngLee McKnight Jr2023-11-02 15:50:452023-11-03 09:18:20Most Effective Tools At Generating New Business
Jason Therrien is a founder, investor, board member and civic volunteer and has started several businesses since 1997, including thunder::tech, an integrated marketing agency that accelerates brands for a connected world.
Today, thunder::tech has grown into a 50+ person integrated marketing agency servicing middle-market clients coast to coast with offices in Cleveland, Toledo, Detroit and Chicago.
They specialize in digital marketing, brand strategy, communications, web development and advertising.
His experience includes creating integrated marketing strategies for clients ranging from Simple Mills, the Country Music Hall of Fame, Life Fitness, Cedar Fair, USA Track and Field, Parker Hannifin and many more.
thunder::tech’s horizontal positioning, working across multiple verticals-how Jason and the team handle it from a business development perspective (per Jason, like an investment portfolio-had never heard it put that way before)
Jason’s advice to agencies considering a horizontally-focused approach.
We talk agency specialization and the need for intentionality.
thunder::tech as an “agency that is a practitioner.” What it means in practice.
Treating your agency like a client. (“We’re our own R&D lab-we test it on ourselves first)
The agency content creation process, which includes multiple individuals at the agency, including Jason.
How content has evolved for the agency (They’re bringing physical mail back!)
The frequency of content for the agency and the philosophy behind it (Agencies are their own worst critics when it comes to content.”)
The COPE acronym-how it’s helped the team think through their investment in content
Jason’s thoughts on “the giant, sociological experiment that we are all participating in at work” and the piece he wrote on LinkedIn that got some nice traction. WFH is ever evolving and Jason has some insightful thoughts.
Jason’s involvement in Destination Cleveland, and his alma mater John Carroll University and his whole philosophy on giving back.
And one piece of advice Jason would give to marketers to make their agency relationships more effective what would it be?
More about Jason: In addition to his involvement with thunder::tech, an integrated marketing agency, Therrien is a corporate board member and investor in several businesses that range from publishing to transportation. thunder::tech has been awarded a place on the Inc. Magazine 5000 list of the fastest growing companies in America four times and Therrien has also been recognized in Crain’s Cleveland Business 150 names to know in Northeast Ohio three separate times.
He has been quoted in USA Today, AdAge, Time, Crain’s and other media outlets on various marketing topics. Therrien is an active member in his community, serving on a number of boards and is a proud father of two crazy, awesome kids that he loves to travel with.
https://www.rswus.com/wp-content/uploads/2023/10/Cut-to-the-Chase-with-Jason-Therrien-President-and-CEO-of-thundertech-an-integrated-marketing-agency.png7391307Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2024/09/RSWUS-Professional-Services-Dark-1.pngLee McKnight Jr2023-10-24 09:44:122023-10-24 09:56:54Cut to the Chase with Jason Therrien, President and CEO of thunder::tech, an integrated marketing agency| Ep. 9
If your ad agency focuses on homebuilding or new home construction, you should watch this episode of Marketer’s Edge.
Lombardo Companies, based in Shelby Township, MI, is driven by the desire to make their customers’ dream home a reality. They work closely with homebuyers to understand their needs and design a home that compliments their lifestyle.
Why Advertising Agencies Should Watch This Episode-Melissa talks:
The role architects and designers play in staying ahead of homebuilding trends.
Her experience working with marketing agencies and the reasons she typically uses them.
How she determines what tasks to handle in-house and what to outsource to an agency.
The type of organization Lombardo Companies is and her role within it.
Her extensive experience in the home building industry and what she finds rewarding about it.
How home builders differentiate themselves from competitors.
The significant changes in the home builder space over the past 20 years.
Key takeaways from the 2023 IBS (International Builders’ Show) and the overall sentiment surrounding the industry and economy.
How she identifies “cutting edge” ideas and offerings and stays ahead of the curve.
If your agency or PR firm is struggling with new business, contact Lee McKnight Jr. at lee@rswus.com for a conversation. That’s our sole focus at RSW/US.
Have you hired a full-time new business hunter/ director/manager (as part of your staff) to prospect for leads for your agency in the past three years?
In the last two years of our survey (‘21 & ‘22), hiring for the new business director position at an agency fell to its lowest level since we started this survey in 2010, with just 32% of agencies hiring a new business director in the past 3 years.
We’re seeing that trend reverse in 2023, although not by much, with 36% of agencies hiring an internal new business director.
To add a further layer to the discussion we also asked agencies, “How difficult or easy has it been for you to hire quality employees for your agency/firm?”
51% of agencies said it was very to somewhat difficult and 39% said neither easy or difficult.
June saw a significant boost in employment across advertising, public relations, and related services, rising by 2,200 jobs, per new Bureau of Labor Statistics data cited in Ad Age. With this uptick, employment in these sectors has reached its highest since 2001.
However, in regard to the business development position specifically, it’s an ongoing saga agency owners must contend with:
85% of Agency New Business Directors last less than 2 years.
Of course, the last three years have had their fair share of unique struggles coming out of the pandemic with an uncertain economy and hiring difficulties.
Beyond these struggles—and those struggles are certainly real—agencies often just don’t know what to look for when trying to hire for the development position.
The process is not easy, but we see some key mistakes up front in the hiring process.
Here are 4 Mistakes Agencies Should Avoid When Hiring An Internal New Business Director
1 Hiring for that person’s network.
If this candidate’s main method of prospecting has been networking events, local happy hours, etc., you need to dig deeper and ask questions around their inside sales experience.
2 Hiring green.
At RSW, we hire new business directors that have 10-15 years of sales and marketing experience.
It makes the process longer and tougher, but it’s the expectation we set.
Agencies will hire green and then think they can train up.
3 Not digging deep enough on the individual’s planned new business process.
Always ask for a top-line version of the process and plan your new business director will carry out.
4 Failing to define the new business position clearly up front.
Is this person responsible for all facets of new business, from top of the funnel all the way through to pitching and RFP responses?
Is that person purchasing prospecting lists, or expected to build those out?
In Part 4 of our series we’ll talk the dollar volume of new opportunities so far in 2023.
https://www.rswus.com/wp-content/uploads/2023/10/4-Mistakes-Ad-Agencies-Should-Avoid-When-Hiring-An-Internal-New-Business-Director-2.jpg529498Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2024/09/RSWUS-Professional-Services-Dark-1.pngLee McKnight Jr2023-10-19 14:07:172023-10-19 16:13:004 Mistakes Ad Agencies Should Avoid When Hiring An Internal New Business Director
So 2023 has been kicking small and mid-sized agencies around so far this year from a new business standpoint, and in this second post in a series, we explore the question, Why Is It Harder To Obtain New Business?
The first three quarters of this year have been somewhere between a head-scratcher and a dumpster fire — but the rest of it doesn’t have to be.
If agencies stay focused on the spaces where we have a right to win; empathize with the unique pressures our clients are facing and eradicate risk; and capitalize on this moment and create our own luck, then there’s hope for 2023 — and a brighter 2024 yet.
Couldn’t agree more with Jeff and his optimistic take, but as he points out, agencies have some work to do.
So in order move forward and embrace a more profitable 2024, I want to explore the reasons why agencies found acquiring new business to be more difficult in 2023, and look at those areas agencies have control of.
Taken from our RSW 2023 Agency New Business Report, we asked agencies:
Why Is It Harder To Obtain New Business?
In previous surveys, agencies have unilaterally given “breaking through to prospects” as the main reason why it’s harder to obtain new business.
This year, for the first time ever, it comes in third.
So what follows is a breakdown of the top 8 reasons:
Fewer Opportunities Out There (61%):
At the forefront of the challenges identified in our survey is the perception that there are simply fewer opportunities available.
Competition, to be fair, contributes to a more limited pool of opportunities. The ad agency world is a crowded market.
The question I would ask, in the spirit of tough love, is: How regularly did you actually pursue new business in 2023?
I do think for many small and mid-sized agencies, perception, as used above, is the key word here.
If your firm is not actively pursuing new business in some form, then there will, by definition, be fewer opportunities.
That is not to take away from the very real situation of marketers and budgets pulling back in 2023-that you cannot control, but if a plan for new business you can control.
Prospect Budgets Too Small (55%):
It should be noted that agencies in our survey are not referring to client budgets (which also saw reductions) but prospect budgets for potential work. A 2023 report from Survey Monkey (2023 Marketing Report: Top challenges and opportunities) pointed out
33% of marketers say their budgets will decrease or stay the same in 2023.
From our own 2023 New Year Outlook Survey, only 36% of agencies believed their clients would increase marketing spending somewhat to significantly, a 37-point drop at that point from 2022.
So agencies had a gut feeling on this at the outset of the year, and indeed, anecdotally, we did see some pullback from marketers.
And post-pandemic, many agencies were able to pick and choose projects and had it really good. Those same agencies got a jolt around Q2.
So moving into ‘24 would be the time to potentially consider smaller opportunities in the short term, that are, critically, still within your wheelhouse, in order to land and expand.
Harder to Break Through to Prospects (47%):
While no longer the primary challenge, breaking through to prospects remains a significant hurdle.
Without a doubt, it’s never been harder, but at the same time, the amount of useless emails and outreach overall make it harder for you to break through, but it also provides you with an opportunity.
An opportunity to use messaging that does two critical things: 1) Show your agency expertise and 2) how it can help solve their business challenges.
I am continually shocked with the lack of these two elements in prospecting outreach.
You have to remember how busy your prospects are, and how much noise surrounds them-professional and personal.
If this is happening more often that not, here’s a step-by-step “ghosting follow up schedule” to help you stick with your prospects if they’re ghosting you – and more importantly – help you get a clear yes or no from them, so you can move forward or move on.
You’ll find 3 email templates and 1 VM template you can adjust as needed to fit your situation.
Can’t Find the Right Person (15%):
Identifying and reaching the key decision-makers within a potential client organization remains a persistent challenge, and the first key is making sure you’re going after the right titles.
That may sound entirely obvious, but it’s a problem for many agencies.
Key here is to do the homework up front, and be sure to differentiate between who you actually work with ongoing within a client’s company versus the decision maker you’re reaching out to when prospecting.
They’re not always the same person.
No Process in Place (13%):
Establishing clear methodologies for lead generation, qualification, and conversion is, of course, imperative.
We’ve discussed before in our ongoing content, that the first step is forcing yourself to take this first step.
The only one to blame for no process is yourself, but of course that doesn’t mean you may not need help.
The Resources dropdown on our home page has a lot of info to help you get started, or restart.
No Time to Do It (11%):
See above.
As easy as it is to say, time must be made.
Making a plan you can actually stick to is the first step.
Can’t Make the Investment (5%):
This is certainly legitimate, but you also don’t need a large outlay of cash to go after new business initially.
Looking at the 4 key areas of business development( referrals, organic growth, inbound/content, and outbound), you already have the tools to handle all four of those with no additional cash outlay.
As you progress, however, yes, you will need other tools, like a CRM, for example, but an internal business development process (if you’re not hiring someone solely dedicated to the job) does not require a large investment to start the process internally.
In Part 3 of our series we’ll talk hiring for the new business director position.
https://www.rswus.com/wp-content/uploads/2023/10/Why-Is-It-Harder-To-Obtain-New-Business-1.jpg625500Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2024/09/RSWUS-Professional-Services-Dark-1.pngLee McKnight Jr2023-10-12 15:00:302023-10-12 15:10:09Why Is It Harder To Obtain New Business?
If ever there was an authority on cleantech in our industry, Mike Casey is it.
He’s intelligent, passionate and forthright, and he pulls no punches in this interview, episode 3 of Cut to the Chase, the RSW interview series..
Mike is a top U.S. innovator and strategist on cleantech marketing and communications, has presented at more than a dozen major conferences, and writes frequently on clean economy topics at ScalingClean and Renewable Energy World.
Tigercomm is America’s number one marcom and public affairs firm servicing clean economy companies, and as Tigercomm’s founder, he counsels cleantech executives, investors and philanthropists on strategies for meeting their business objectives.
-Hiring a vertically positioned firm: by definition, they should know more than the client. It shouldn’t be a downside. 7:13
-The benefits that come from that vertical positioning and absolute authority in that vertical 14:13
-Mike’s advice to agency principals considering their positioning 18:11
-Content creation and how Mike consistently establishes his, and Tigercomm’s, cleantech authority 20:44
-How Mike handles posting content on LinkedIn and his rule of thumb 25:30
-Mike’s advice to marketers on a sound partnership, and his 3D rule on clients, (and how the team at Tigercomm treats and interacts with each other): avoid at all costs the dramatic, the dishonest, and the dysfunctional 30:22
https://www.rswus.com/wp-content/uploads/2023/06/Cut-to-the-Chase-with-Mike-Casey-President-of-Tigercomm-Ep.-3-Cleantech.png8441498Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2024/09/RSWUS-Professional-Services-Dark-1.pngLee McKnight Jr2023-06-05 15:09:202023-06-05 15:09:20Cut to the Chase with Mike Casey, President of Tigercomm | Ep. 3-Cleantech
This is the second episode of Cut to the Chase, featuring Kelly Callahan-Poe, President of Williams Whittle, full service ad agency in DC.
Cut to the Chase is the RSW/US interview series that delivers brief, but impactful views from ad agency principals and business development leaders on growth strategies and the challenges that come with them in today’s weird, evolving landscape.
Williams Whittle is a full service ad agency that works with nonprofits and forward-thinking companies dedicated to making a positive impact.
A good read can challenge, inspire and motivate you. We have some avid readers on the Williams Whittle team who are often sharing tidbits from their latest page-turner to inspire us inside and outside of the office. So, we thought we would share our favorites with you! Welcome to the WW Book Club!
If your agency or PR firm is struggling with new business, contact Lee McKnight Jr. at lee@rswus.com for a conversation. That’s our sole focus at RSW/US.
https://www.rswus.com/wp-content/uploads/2023/05/Cut-to-the-Chase-with-Kelly-Callahan-Poe-President-of-Williams-Whittle-Ep.-2.png311558Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2024/09/RSWUS-Professional-Services-Dark-1.pngLee McKnight Jr2023-05-24 10:10:072023-05-24 10:12:33Cut to the Chase with Kelly Callahan-Poe, President of Williams Whittle-Full Service Ad Agency | Ep. 2
In this episode of Marketer’s Edge we’re talking tourism and destination marketing with Emily Gonzalez, Vice President of Marketing and Communications for Visit Mobile.
If your ad agency pursues tourism and destination marketing clients, watch this episode.
Visit Mobile is Mobile, Alabama’s official destination marketing organization charged with attracting visitors and conventions to the Mobile area to experience and enjoy their history, culture and attractions in order to further strengthen Mobile’s image as a national destination, increasing economic stability and enhancing the region’s quality of life.
Why Advertising Agencies Should Watch This Episode-Emily talks:
Where to place her marketing emphasis when there are so many different offerings.
How she uses data and analytics to optimize her marketing efforts.
The biggest marketing challenges in marketing Mobile, AL.
How her degree from the Southeast Tourism Society impacts her work.
What Visit Mobile does, and the six pillars the organization focuses on.
The biggest differences between marketing vacation rentals (her previous job) and marketing a city.
How marketing a city like Mobile has changed over the years.
How she determines positioning for Mobile to most effectively differentiate it from other destinations.
Whether she currently uses an agency in her marketing efforts.
Advice she would give to marketers thinking about bringing a new agency on board.
And lastly, if an agency was attempting to win business from her, the advice she would give them.
If your agency or PR firm is struggling with new business, contact Lee McKnight Jr. at lee@rswus.com for a conversation. That’s our sole focus at RSW/US.
In this episode of Marketer’s Edge we’re talking financial services and credit unions with David Eldred, the Chief Experience Officer for Solarity Credit Union.
If your agency pursues clients in the financial services or credit union space, you’ll want to watch this episode.
With over $1 billion in assets under management, Solarity Credit Union’s digitally focused community-centric co-op currently serves more than 50,000 members and offers a comprehensive range of products and services to meet ever-evolving financial needs.
Membership is open to everyone who lives, works, worships, or attends school within a Washington State school district.
Why Advertising Agencies Should Watch This Episode-David talks:
His experience with RVM (Relationship Value Management), an approach that proved invaluable in developing relationship-based pricing strategies.
Aside from mobile banking, the biggest changes in the industry he has experienced.
And what he thinks the financial services and credit unions space will look like 3-5 years out.
What it means to be a “Chief Experience Officer” at a credit union and how that’s different than being a CMO.
What he likes most (personally and professionally) about the financial servives and credit unions space, an industry he’s operated in his entire career.
The advantages of in-house teams and the advantages of working with an outside agency.
Any advice he would give to marketers thinking about bringing a new agency on board.
And lastly, if an agency was trying to knock down his door and attempting to win business from him, the advice he would give them.
Unsurprisingly, networking (73%), past agency relationships (67%), and friends/co-workers (60%) constituted the top 3.
Direct Outreach Making A Comeback?
OK, maybe not the best heading, because direct outreach (outbound) never went away, but small and mid-sized agencies have always struggled with it,
In answer to the above question we asked marketers, a significant number (44%) stated that they learn about agencies via direct agency outreach.
When we asked this question many years ago, the percent of marketers stating that they learned about agencies this way was in the low teens (13%).
A few takeaways for agencies here.
If you aren’t organizing outreach to marketers, you need to do it now.
There once was a day when “web searches” was among the top ways in which marketers found out about agencies. This year, it rates near the bottom, at 16%.
And while you can’t necessarily influence a marketer’s personal network, unless you literally know someone in that network, these results are a reminder to focus on your own network. As always, it’s important to your new business strategy, whether through other firms, associates, or friends.
You must cultivate your personal network, and not be afraid or nervous about doing so.
Marketers named “past agency relationships” as the second most-often way they discover agencies.
Often, when marketers move to another company, they reach out to you, which is fantastic.
But it doesn’t always happen that way.
Take the time in the beginning of 2023 to look through your past clients.
Odds are, there are individuals who have moved on to new companies, which is an opportunity for you to reconnect.
How do prospects find your agency? To reiterate: Do not ignore number four on this list (Direct Agency Outreach) just because it’s number four!
Of the top three on the list above, only number two is the one you have any control over.
So that leaves you with the most important, and one you can most directly influence: direct agency outreach.
Make it a priority in 2023, and if you need help, that’s what we do. Contact us here.
https://www.rswus.com/wp-content/uploads/2023/02/How-Do-Prospects-Find-Your-Agency-1.png10801080Lee McKnight Jrhttps://www.rswus.com/wp-content/uploads/2024/09/RSWUS-Professional-Services-Dark-1.pngLee McKnight Jr2023-02-09 15:56:382023-03-20 09:52:08How Do Prospects Find Your Ad Agency?
