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#INBOUND14
the	
  profitable	
  agency
how	
  to	
  a*ract,	
  retain	
  and	
  grow	
  
a	
  profitable	
  client	
  base
s...
of	
  marketers	
  think	
  markeEng	
  has	
  
changed	
  more	
  in	
  the	
  past	
  two	
  
years	
  than	
  the	
  pa...
the	
  consumer	
  is	
  the	
  true	
  change	
  catalyst
@paulroetzer www.pr2020.com#inbound14
90% of	
  daily	
  media	
  interac;ons	
  
are	
  screen	
  based
source:	
  Google,	
  The	
  New	
  MulE-­‐Screen	
  Wo...
B2B	
  buyers	
  may	
  be	
  	
  
up	
  to	
  90%	
  through	
  their	
  journey	
  	
  
before	
  contacEng	
  a	
  vend...
Source:	
  Google
Every	
  trackable	
  consumer	
  acEon	
  creates	
  a	
  data	
  point,	
  and	
  
every	
  data	
  po...
Source:	
  Chiefmartech.com
the	
  customer	
  journey	
  does	
  not	
  follow	
  
a	
  linear	
  path	
  defined	
  by	
 ...
Define	
  FoundaEon	
  Projects
blog	
  posts	
  
podcasts	
  
website	
  
video	
  
email	
  
webinars	
  
mobile	
  apps
...
Define	
  FoundaEon	
  Projects
create	
  more	
  value,	
  for	
  more	
  people,	
  more	
  oDen,	
  	
  
so	
  when	
  i...
what’s	
  holding	
  businesses	
  back	
  from	
  
achieving	
  performance	
  poten;al?
image:	
  Xurxo	
  Marcnez
talent	
  gap	
  +	
  tech	
  gap	
  +	
  strategy	
  gap	
  =	
  PERFORMANCE	
  gap
@paulroetz...
of	
  marketers	
  say	
  their	
  	
  
lack	
  of	
  skills	
  is	
  impacEng	
  
revenue	
  in	
  some	
  way	
  
!
sour...
of	
  companies	
  lack	
  necessary	
  
digital	
  skills	
  in	
  key	
  areas	
  of	
  social	
  
media,	
  mobile,	
  ...
a	
  talent	
  war	
  has	
  begun
for	
  tech-­‐savvy,	
  hybrid	
  marketers
capable	
  of	
  building,	
  managing	
  and	
  execu/ng	
  
fully	
  integrated	
  campaigns	
  that	
  produce	
  resul...
agile,	
  adept	
  at	
  advanced	
  
marke;ng	
  tech,	
  and	
  
experts	
  in	
  inbound	
  
strategy
@paulroetzer www....
how	
  do	
  we	
  	
  
find	
  the	
  unicorns?
@paulroetzer
only	
  1	
  of	
  the	
  top	
  10	
  	
  
markeEng	
  programs	
  in	
  the	
  U.S.	
  	
  
has	
  a	
  required	
  unde...
businesses	
  must	
  take	
  the	
  ini;a;ve	
  to	
  	
  
mold	
  their	
  own	
  modern marketers
@paulroetzer www.pr20...
by	
  2017,	
  the	
  CMO	
  will	
  spend	
  more	
  on	
  IT	
  than	
  the	
  CIO.	
  
!
source:	
  Gartner
IT	
  =	
  ...
6	
  classes,	
  43	
  categories,	
  947	
  companies
ExactTarget	
  IPO	
  (Mar	
  '12)
Eloqua	
  IPO	
  (Aug	
  '12)
ExactTarget	
  buys	
  Pardot	
  (Oct	
  '12)
HubSpot	
  ...
analyEcs	
  
automaEon	
  
coding	
  
content	
  
digital	
  ads	
  
email	
  
mobile	
  
public	
  relaEons	
  
search	
 ...
@paulroetzer www.pr2020.com#inbound14
generate	
  leads
86%
85% convert	
  sales
build	
  brand
46%
51% increase	
  loyalty
brand
leads
sales
loyalty
Source:	
 ...
sample	
  KPIs
website	
  traffic	
  
social	
  reach	
  	
  
subscribers
lead	
  volume	
  
lead	
  quality	
  score
lead-­...
source:	
  Accenture’s	
  Turbulence	
  for	
  the	
  CMO
the	
  markeEng	
  industry	
  is	
  moving	
  too	
  fast	
  	
...
Donovan	
  Neale-­‐May,	
  	
  
ExecuEve	
  Director,	
  CMO	
  Council
“There’s	
  an	
  underlying	
  
level	
  of	
  fr...
of	
  senior	
  marketers	
  believe	
  
tradi;onal	
  ad	
  agencies	
  are	
  doing	
  
a	
  good	
  job	
  of	
  evolvi...
where	
  do	
  	
  
the	
  other	
  91%	
  	
  
turn	
  for	
  help?
@paulroetzer www.pr2020.com#inbound14
growth	
  is	
  the	
  easy	
  part.	
  
retaining	
  it,	
  and	
  making	
  it	
  profitable,	
  
are	
  the	
  real	
  c...
a	
  cauEonary	
  tale	
  of	
  churn
Define	
  FoundaEon	
  ProjectsPR	
  20/20	
  growth	
  (2009)
15	
  new	
  campaign	
  clients	
  
!
$195,000	
  in	
  200...
life	
  is	
  good!
0	
  clients	
  remain
average	
  relaAonship	
  lasted	
  12	
  months
49%	
  of	
  marketers	
  report	
  they	
  will	
  
consolidate	
  or	
  change	
  agencies	
  
over	
  the	
  next	
  12...
Define	
  FoundaEon	
  Projectschurn	
  factors
financial	
  instability	
  
focus	
  on	
  outputs,	
  not	
  outcomes	
  
...
Define	
  FoundaEon	
  Projectschurn	
  factors
client	
  side
conservaEve	
  culture/budgets	
  
financial	
  instability	
...
work	
  with	
  agency	
  partners	
  that	
  	
  
care	
  as	
  much	
  about	
  	
  
performance	
  and	
  success	
  	
...
15	
  ways	
  to	
  	
  
maximize	
  agency	
  profits
Source:	
  HubSpot
1)	
  prove	
  performance
@paulroetzer www.pr2020.com#inbound14
@paulroetzer www.pr2020.com
2)	
  develop	
  scalable	
  processes	
  and	
  services.
 	
  3)	
  reduce	
  business	
  development	
  Eme.
(remove	
  despera/on)
4)	
  achieve	
  financial	
  stability.
Define	
  FoundaEon	
  Projects
5)	
  know	
  when	
  to	
  say	
  NO.
commit	
  to	
  clients	
  and	
  
prospects	
  who	...
6)	
  get	
  paid	
  for	
  planning.
@paulroetzer www.pr2020.com#inbound14
2006
2008
2010
2014
7)	
  establish	
  value-­‐based	
  pricing.
@paulroetzer
8)	
  build	
  brand	
  and	
  reputaEon.
image:	
  David	
  Guo
Senior	
  Pro	
  @	
  $75,000	
  =	
  $32/hour	
  	
  
vs.	
  	
  
Junior	
  Pro	
  @	
  $45,000	
 ...
10)	
  arract	
  and	
  nurture	
  entry-­‐level	
  talent.
@paulroetzer www.pr2020.com#inbound14
11)	
  move	
  to	
  campaign-­‐based	
  contracts.
@paulroetzer www.pr2020.com#inbound14
image:	
  Xurxo	
  Marcnez
12)	
  fill	
  talent,	
  tech	
  and	
  strategy	
  gaps.
@paulroetzer www.pr2020.com#inbound14
(eliminate	
  waste)
13)	
  track	
  ;me	
  and	
  efficiency.
14)	
  focus	
  on	
  reten;on.
@paulroetzer www.pr2020.com#inbound14
Speaking	
  
5%
Publishing	
  
5%
Events	
  
10%
Sofware	
  
10%
Services	
  
70%
15)	
  diversify	
  revenue.
@paulroetze...
paul	
  roetzer,	
  @paulroetzer	
  
!
CEO	
  |	
  PR	
  20/20	
  
author	
  |	
  The	
  MarkeAng	
  Performance	
  Bluepr...
THE PROFITABLE AGENCY [INBOUND 2014]
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THE PROFITABLE AGENCY [INBOUND 2014]

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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.

Veröffentlicht in: Marketing
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THE PROFITABLE AGENCY [INBOUND 2014]

  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 www.pr2020.com#inbound14
  3. 3. the  consumer  is  the  true  change  catalyst @paulroetzer www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  7. 7. Source:  Chiefmartech.com the  customer  journey  does  not  follow   a  linear  path  defined  by  marketers @paulroetzer www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  12. 12. of  marketers  say  their     lack  of  skills  is  impacEng   revenue  in  some  way   ! source:  2012  MarkeEng  Skills  Gap  Report 75% @paulroetzer www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  16. 16. agile,  adept  at  advanced   marke;ng  tech,  and   experts  in  inbound   strategy @paulroetzer www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  20. 20. by  2017,  the  CMO  will  spend  more  on  IT  than  the  CIO.   ! source:  Gartner IT  =  CIO  CMO @paulroetzer www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  24. 24. @paulroetzer www.pr2020.com#inbound14
  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 www.pr2020.com
  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 www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  30. 30. where  do     the  other  91%     turn  for  help? @paulroetzer www.pr2020.com#inbound14
  31. 31. growth  is  the  easy  part.   retaining  it,  and  making  it  profitable,   are  the  real  challenges  for  agencies. @paulroetzer www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  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 www.pr2020.com#inbound14
  39. 39. work  with  agency  partners  that     care  as  much  about     performance  and  success     as  you  do @paulroetzer www.pr2020.com#inbound14
  40. 40. 15  ways  to     maximize  agency  profits
  41. 41. Source:  HubSpot 1)  prove  performance @paulroetzer www.pr2020.com#inbound14
  42. 42. @paulroetzer www.pr2020.com 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 www.pr2020.com#inbound14
  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 www.pr2020.com
  50. 50. 10)  arract  and  nurture  entry-­‐level  talent. @paulroetzer www.pr2020.com#inbound14
  51. 51. 11)  move  to  campaign-­‐based  contracts. @paulroetzer www.pr2020.com#inbound14
  52. 52. image:  Xurxo  Marcnez 12)  fill  talent,  tech  and  strategy  gaps. @paulroetzer www.pr2020.com#inbound14
  53. 53. (eliminate  waste) 13)  track  ;me  and  efficiency.
  54. 54. 14)  focus  on  reten;on. @paulroetzer www.pr2020.com#inbound14
  55. 55. Speaking   5% Publishing   5% Events   10% Sofware   10% Services   70% 15)  diversify  revenue. @paulroetzer www.pr2020.com
  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 www.pr2020.com

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