Every good salesman knows that you must understand your customer's needs in order to make a sale. The same holds true for ad agencies looking for new business growth -- you must understand the mindset and needs of your clients and prospects if you are going to be successful.
RSW/US has just released their 2010 New Business Report, titled A Client's Perspective on Agencies www.rswus.com/surveys. While many of the findings are not new, they offer a good reminder for the key elements to keep in mind as you plan and execute your new business program:
1. Clients want leadership, not partnership.
The pace and magnitude of change in marketing today has many clients confused and somewhat frightened. They don't need a friend to hold their hand, they need solid guidance and recommendations on how to take their products and services to an empowered consumer in a rapidly changing media environment.
When asked in the RSW survey why the respondents decided to change agencies, their top answers were: "Not happy with strategy or thinking" (44%), "not happy with creative" (42%), "wanted lots of ideas for a new project" (29%).
If you want to win (and keep) clients, you need to be proactive in leading your clients to explore new ways to market. If you don't, someone else will.
2. Clients want to know that you understand their company and their category.
Before you make any recommendation, you must give your client or prospect permission to believe that your ideas are based a sound strategy developed from your understanding of their company and customers. When RSW researchers asked about the factors that were most critical in helping to decide which agency to choose, the top two answers were: "Understanding your company direction" (69%) and "understanding of your market" (68%).
If you want to win (and keep) clients, you need to ask questions, stay on top of competitor's activities, and read and report on every new piece of consumer information you find. Remember that it is important to make sure your client knows how hard you are working to stay on top of things. Don't assume they will know. Send them articles from trade pubs and links to new studies, along with your summary of key insights and how it will/might affect your client. They will appreciate your efforts, and be more receptive to your recommendations.
3. Clients want reassurance. Show them a defined planning process and back it up with case studies that prove it works.
There's no need to invent a magic buzzword to define your methodology (the good ones have already been taken, anyway). The important thing is for your agency to have a planning approach that has proven successful for other clients.
Having a defined process works on two levels. It gives the CMO confidence that the agency will build its recommendations from a formula that worked for other marketers. And, it gives the CMO a rationale for his management to understand and accept his decision to choose a particular agency (keep in mind that every CMO has someone looking over his shoulder and will often make the most defensible decision, whether it is the best one or not).
The RSW study found that 45% of respondents listed "Agency's planning process" as a key factor in choosing an agency. The study also reinforced the power of case studies and testimonials for reassurance. "Recommendation from a colleague" (38%) and "recommendation from a marketer in another company" (37%) were also ranked highly as specific factors which most influenced their choice.
The RSW study has many other excellent insights, especially if you read the verbatim comments from respondents. My key takeaway from the study is something I have said in other posts -- clients aren't looking for a new ad or a new website, they are looking for a way to build a bridge between their brand and their customers.
How much you understand about their company, their customer, and their mindset will determine how successful you are at convincing them your agency is their best choice to build that bridge.
