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#INBOUND14 
the 
profitable 
agency 
how 
to 
a*ract, 
retain 
and 
grow 
a 
profitable 
client 
base 
sept. 
16, 
2014 
p...
! 
source: 
Adobe 
Digital 
Distress 76% 
of 
marketers 
think 
markeEng 
has 
changed 
more 
in 
the 
past 
two 
years 
t...
the 
consumer 
is 
the 
true 
change 
catalyst 
@paulroetzer #inbound14 www.pr2020.com
90% of 
daily 
media 
interac;ons 
are 
screen 
based 
source: 
Google, 
The 
New 
MulE-­‐Screen 
World 
@paulroetzer
B2B 
buyers 
may 
be 
up 
to 
90% 
through 
their 
journey 
before 
contacEng 
a 
vendor. 
! 
source: 
Forrester 
image: 
...
Every 
trackable 
consumer 
acEon 
creates 
a 
data 
point, 
and 
every 
data 
point 
tells 
a 
piece 
Source: 
Google 
of...
Source: 
Chiefmartech.com 
the 
customer 
journey 
does 
not 
follow 
a 
linear 
path 
defined 
by 
marketers 
@paulroetze...
we 
have 
entered 
the 
age 
Define 
FoundaEon 
Projects 
blog 
posts 
podcasts 
website 
video 
email 
webinars 
mobile 
...
Define 
FoundaEon 
Projects 
create 
more 
value, 
for 
more 
people, 
more 
oDen, 
so 
when 
it’s 
Eme 
to 
choose, 
they...
what’s 
holding 
businesses 
back 
from 
achieving 
performance 
poten;al?
image: 
Xurxo 
Marcnez 
talent 
gap 
+ 
tech 
gap 
+ 
strategy 
gap 
= 
PERFORMANCE 
gap 
@paulroetzer #inbound14 www.pr20...
a 
story 
about 
the 
convergence 
of 
marke;ng 
talent, 
technology 
and 
strategy, 
and 
the 
opportunity 
to 
build 
pe...
75% 
of 
marketers 
say 
their 
lack 
of 
skills 
is 
impacEng 
revenue 
in 
some 
way 
! 
source: 
2012 
MarkeEng 
Skills...
of 
companies 
lack 
necessary 
digital 
skills 
in 
key 
areas 
of 
social 
media, 
mobile, 
internal 
social 
networks, ...
a 
talent 
war 
has 
begun 
for 
tech-­‐savvy, 
hybrid 
marketers
capable 
of 
building, 
managing 
and 
execu/ng 
fully 
integrated 
campaigns 
that 
produce 
results 
@paulroetzer #inbou...
agile, 
adept 
at 
advanced 
marke;ng 
tech, 
and 
experts 
in 
inbound 
strategy 
@paulroetzer #inbound14 www.pr2020.com
how 
do 
we 
find 
the 
unicorns? 
@paulroetzer
only 
1 
of 
the 
top 
10 
markeEng 
programs 
in 
the 
U.S. 
has 
a 
required 
undergraduate 
digital 
marke;ng 
course 
...
businesses 
must 
take 
the 
ini;a;ve 
to 
mold 
their 
own 
modern marketers 
@paulroetzer #inbound14 www.pr2020.com
IT 
= 
CIO 
CMO 
by 
2017, 
the 
CMO 
will 
spend 
more 
on 
IT 
than 
the 
CIO. 
! 
source: 
Gartner 
@paulroetzer #inbou...
6 
classes, 
43 
categories, 
947 
companies
venture 
funding, 
mergers, 
acquisiEons 
and 
IPOs 
the 
martech 
industry 
ExactTarget 
IPO 
(Mar 
'12) 
Eloqua 
IPO 
(A...
the 
new 
marke;ng 
mix 
analyEcs 
automaEon 
coding 
content 
digital 
ads 
email 
mobile 
public 
relaEons 
search 
soci...
@paulroetzer #inbound14 www.pr2020.com
source: 
Accenture’s 
Turbulence 
for 
the 
CMO 
the 
markeEng 
industry 
is 
moving 
too 
fast 
to 
internalize 
everythi...
“There’s 
an 
underlying 
level 
of 
frustra;on 
among 
senior 
corporate 
marketers 
worldwide 
when 
it 
comes 
to 
agen...
of 
senior 
marketers 
believe 
tradi;onal 
ad 
agencies 
are 
doing 
a 
good 
job 
of 
evolving 
and 
extending 
their 
s...
where 
do 
the 
other 
91% 
turn 
for 
help? 
@paulroetzer #inbound14 www.pr2020.com
growth 
is 
the 
easy 
part. 
retaining 
it, 
and 
making 
it 
profitable, 
are 
the 
real 
challenges 
for 
agencies. 
@p...
a 
cauEonary 
tale 
of 
churn
Define 
FoundaEPoRn 
2 
P0/ro20je 
gcrtoswth 
(2009) 
15 
new 
campaign 
clients 
! 
$195,000 
in 
2009 
revenue 
! 
$503,...
life 
is 
good!
average 
rela9onship 
lasted 
0 
clients 
remain 
12 
months
49% 
of 
marketers 
report 
they 
will 
consolidate 
or 
change 
agencies 
over 
the 
next 
12 
months. 
Another 
15% 
are...
Define 
FoundaEon 
Projeccthsurn 
factors 
agency 
side 
financial 
instability 
focus 
on 
outputs, 
not 
outcomes 
over ...
churn 
factors 
Define 
FoundaEon 
Projects 
client 
side 
conservaEve 
culture/budgets 
financial 
instability 
lack 
of ...
work 
with 
agency 
partners 
that 
care 
as 
much 
about 
performance 
and 
success 
as 
you 
do 
@paulroetzer #inbound14...
15 
ways 
to 
maximize 
agency 
profits
Source: 
HubSpot 
1) 
prove 
performance. 
@paulroetzer #inbound14 www.pr2020.com
2) 
develop 
scalable 
processes 
and 
services. 
@paulroetzer www.pr2020.com
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 
value 
your 
people, ...
6) 
get 
paid 
for 
planning. 
@paulroetzer #inbound14 www.pr2020.com
2006 
2008 
2010 
7) 
establish 
2014 
value-­‐based 
pricing. 
@paulroetzer
8) 
build 
brand 
and 
reputaEon.
costs. 
image: 
David 
Guo 
9) 
understand 
service-­‐delivery 
senior 
pro 
@ 
$75,000 
= 
$32/hour 
vs. 
junior 
pro 
@ ...
10) 
arract 
and 
nurture 
entry-­‐level 
talent. 
@paulroetzer #inbound14 www.pr2020.com
11) 
move 
to 
campaign-­‐based 
contracts. 
@paulroetzer #inbound14 www.pr2020.com
image: 
Xurxo 
Marcnez 
12) 
fill 
talent, 
tech 
and 
strategy 
gaps. 
@paulroetzer #inbound14 www.pr2020.com
(eliminate 
waste) 
13) 
track 
;me 
and 
efficiency.
14) 
focus 
on 
reten;on. 
@paulroetzer #inbound14 www.pr2020.com
Speaking 
5% 
Publishing 
5% 
Events 
10% 
Sofware 
10% 
Services 
70% 
15) 
diversify 
revenue. 
@paulroetzer www.pr2020....
paul 
roetzer, 
@paulroetzer 
! 
CEO 
| 
PR 
20/20 
author 
| 
The 
Marke9ng 
Performance 
Blueprint 
(Wiley, 
2014) 
& 
T...
The Profitable Agency: How to Attract, Retain and Grow a Profitable Client Base
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The Profitable Agency: How to Attract, Retain and Grow a Profitable Client Base

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#INBOUND 14 agency track deck. 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. The presentation provides 15 actionable tips to maximize your agency’s profits in the new era of marketing services.

Publicada em: Marketing
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  • Hi Paul, Your presentation at #INBOUND14 was outstanding! Loved how you incorporated hard data into your presentation, and your thoughts on diversifying revenue channels/opportunities (e.g. services, publishing, speaking, etc.). At the end of the day, all of those channels become part of the marketing toolkit. Likewise, it's always nice to get a new perspective on the marketing curriculum in higher-education and how it impacts agencies. Again, great insights, Paul!
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  • Thanks, Andrew! - Paul
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  • This presentation was awesome, thanks for taking the time to layout such great content, Paul. - Andrew
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The Profitable Agency: How to Attract, Retain and Grow a Profitable Client Base

  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. ! source: Adobe Digital Distress 76% of marketers think markeEng has changed more in the past two years than the past 50 @paulroetzer #inbound14 www.pr2020.com
  3. 3. the consumer is the true change catalyst @paulroetzer #inbound14 www.pr2020.com
  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 #inbound14 www.pr2020.com
  6. 6. Every trackable consumer acEon creates a data point, and every data point tells a piece Source: Google of the customer's story @paulroetzer #inbound14 www.pr2020.com
  7. 7. Source: Chiefmartech.com the customer journey does not follow a linear path defined by marketers @paulroetzer #inbound14 www.pr2020.com
  8. 8. we have entered the age 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 content, context and the customer experience @paulroetzer #inbound14 www.pr2020.com
  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 #inbound14 www.pr2020.com
  12. 12. a story about the convergence of marke;ng talent, technology and strategy, and the opportunity to build performance-­‐driven businesses. @paulroetzer #inbound14 www.pr2020.com
  13. 13. 75% of marketers say their lack of skills is impacEng revenue in some way ! source: 2012 MarkeEng Skills Gap Report @paulroetzer #inbound14 www.pr2020.com
  14. 14. 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 #inbound14 www.pr2020.com
  15. 15. a talent war has begun for tech-­‐savvy, hybrid marketers
  16. 16. capable of building, managing and execu/ng fully integrated campaigns that produce results @paulroetzer #inbound14 www.pr2020.com
  17. 17. agile, adept at advanced marke;ng tech, and experts in inbound strategy @paulroetzer #inbound14 www.pr2020.com
  18. 18. how do we find the unicorns? @paulroetzer
  19. 19. only 1 of the top 10 markeEng programs in the U.S. has a required undergraduate digital marke;ng course source: U.S. image: IUB Facebook News & World Report
  20. 20. businesses must take the ini;a;ve to mold their own modern marketers @paulroetzer #inbound14 www.pr2020.com
  21. 21. IT = CIO CMO by 2017, the CMO will spend more on IT than the CIO. ! source: Gartner @paulroetzer #inbound14 www.pr2020.com
  22. 22. 6 classes, 43 categories, 947 companies
  23. 23. venture funding, mergers, acquisiEons and IPOs the martech industry 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) $161.5M $92 M $95.5M $100 M $871 M $79 M fuel $2.5 B 0 5 10 15 20 25 @paulroetzer #inbound14 www.pr2020.com
  24. 24. the new marke;ng mix analyEcs automaEon coding content digital ads email mobile public relaEons search social tech source: AlEmeter’s The Converged Media ImperaEve web @paulroetzer #inbound14 www.pr2020.com
  25. 25. @paulroetzer #inbound14 www.pr2020.com
  26. 26. source: Accenture’s Turbulence for the CMO the markeEng industry is moving too fast to internalize everything
  27. 27. “There’s an underlying level of frustra;on among senior corporate marketers worldwide when it comes to agency contribu;ons Donovan Neale-­‐May, ExecuEve Director, CMO Council to business value creaEon, strategic thinking, and digital markeEng development.” source: CMO Council (2012) @paulroetzer #inbound14 www.pr2020.com
  28. 28. 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 Marke9ng (CMO) Council report More Gain, Less Strain. 9% @paulroetzer #inbound14 www.pr2020.com
  29. 29. where do the other 91% turn for help? @paulroetzer #inbound14 www.pr2020.com
  30. 30. growth is the easy part. retaining it, and making it profitable, are the real challenges for agencies. @paulroetzer #inbound14 www.pr2020.com
  31. 31. a cauEonary tale of churn
  32. 32. Define FoundaEPoRn 2 P0/ro20je gcrtoswth (2009) 15 new campaign clients ! $195,000 in 2009 revenue ! $503,000 in 2010 forecasts
  33. 33. life is good!
  34. 34. average rela9onship lasted 0 clients remain 12 months
  35. 35. 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 #inbound14 www.pr2020.com
  36. 36. Define FoundaEon Projeccthsurn factors agency side 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 @paulroetzer #inbound14 www.pr2020.com
  37. 37. churn factors Define FoundaEon Projects 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 #inbound14 www.pr2020.com
  38. 38. work with agency partners that care as much about performance and success as you do @paulroetzer #inbound14 www.pr2020.com
  39. 39. 15 ways to maximize agency profits
  40. 40. Source: HubSpot 1) prove performance. @paulroetzer #inbound14 www.pr2020.com
  41. 41. 2) develop scalable processes and services. @paulroetzer www.pr2020.com
  42. 42. 3) reduce business development Eme.
  43. 43. (remove despera/on) 4) achieve financial stability.
  44. 44. 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
  45. 45. 6) get paid for planning. @paulroetzer #inbound14 www.pr2020.com
  46. 46. 2006 2008 2010 7) establish 2014 value-­‐based pricing. @paulroetzer
  47. 47. 8) build brand and reputaEon.
  48. 48. costs. image: David Guo 9) understand service-­‐delivery senior pro @ $75,000 = $32/hour vs. junior pro @ $45,000 = $19/hour costs 40% less for junior pro services @paulroetzer www.pr2020.com
  49. 49. 10) arract and nurture entry-­‐level talent. @paulroetzer #inbound14 www.pr2020.com
  50. 50. 11) move to campaign-­‐based contracts. @paulroetzer #inbound14 www.pr2020.com
  51. 51. image: Xurxo Marcnez 12) fill talent, tech and strategy gaps. @paulroetzer #inbound14 www.pr2020.com
  52. 52. (eliminate waste) 13) track ;me and efficiency.
  53. 53. 14) focus on reten;on. @paulroetzer #inbound14 www.pr2020.com
  54. 54. Speaking 5% Publishing 5% Events 10% Sofware 10% Services 70% 15) diversify revenue. @paulroetzer www.pr2020.com
  55. 55. paul roetzer, @paulroetzer ! CEO | PR 20/20 author | The Marke9ng Performance Blueprint (Wiley, 2014) & The Marke9ng Agency Blueprint (Wiley, 2012) creator | MarkeEng Score & MarkeEng Agency Insider www.pr2020.com

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