From figuring out this whole AI thing, keeping up with the ever-growing demand for integrated tools and strategies, and the big one, consistently adding value to our client relationships– there are a variety of areas sellers need to navigate in the new year to remain competitive.  

That’s where this blog comes in – think of it as your friendly guide to help you prepare to navigate what’s on the horizon in 2024. We’ll dive into the trends that are reshaping our industry, like understanding why brands might be breaking up with agencies more often, and how the rise of AI in marketing is changing the game. 

What to Expect from Brand Marketers in 2024

1. Brands Will Be Replacing More Agency Partners 

A new marketing relationship survey indicates that a rising number of brands are unsatisfied with their existing agency partners.The report indicates that 55% of brand marketers who responded are considering a change of agency within the next six months. Why? According the the survey, top reasons including:

• Dissatisfaction with value: Brands are increasingly dissatisfied with the value provided by their current agencies. This dissatisfaction is a primary factor driving brands to consider changing their agency partners.
  
• Issues with delivery: Brands are also unhappy with the delivery of services by their agencies. This includes aspects like the timeliness, quality, and effectiveness of the services provided.

• Agency-client disparities: There is a significant disparity between the perceptions of brands and agencies regarding the reasons for ending agency-client relationships. While brands cite dissatisfaction with value and delivery as top reasons, agencies underestimate these factors.

• Changes in strategic needs: While agencies are recognized for bringing strong strategies, they are perceived as overcharging for their services. Brands are seeking partners who can offer both strategic excellence and cost-effectiveness.

• Chemistry and professionalism: For brands looking to select a new agency partner, chemistry and professionalism have emerged as important aspects. This indicates a need for agencies to align more closely with the culture and values of their clients.

• Demand for specific services: There is an increased demand for specific services like content creation and video production, suggesting that brands are looking for agencies with particular capabilities in these areas.

2. Acquisitions and Consolidation Will Increase Pressure

Boutique and niche service offerings might run into a bit of more competition going into the new year as agency holding companies continue their acquisition spending sprees. This gobbling up of the market share has been inspired by a multitude of factors, including:

• Client demand for integrated services: The consolidation trend is largely driven by client demands for integrated, simplified service offerings. Agencies are responding by creating larger, more comprehensive entities that can offer a range of services under one roof, making them more attractive and efficient partners for brands.

• AI and tech integration: Agencies are heavily investing in AI and technology, focusing on measurement and insights. This trend is driven by advertisers’ demands for more robust analytics and validation of their campaigns’ effectiveness. Major acquisitions, such as Omnicom’s purchase of Flywheel and Stagwell’s acquisition of Left Field Labs, emphasize the growing importance of digital commerce solutions and AI in marketing.

• Influencer and social marketing emphasis: There’s a notable shift towards integrating influencer and social marketing capabilities. With the influencer market and social media spending growing rapidly, major holding companies are acquiring specialized agencies in this area. These acquisitions, such as WPP’s purchase of Goat and Stagwell’s acquisition of Movers+Shakers, show that a strong social and influencer presence is essential for modern advertising campaigns.

• Streamlined financials and full-service models: Brands are demanding more streamlined, integrated agency models. This has led to mergers aimed at simplifying structures and offering comprehensive services. Examples include WPP combining VML, Y&R, and Wunderman Thompson into VML, and M&C Saatchi’s restructure to combine multiple subsidiaries. This consolidation aims to make agencies more appealing and easier to work with for large clients.

• Increased focus on detailed reporting and campaign measurement: Recent acquisitions indicate a future trend where advertisers will demand more detailed reporting and precise campaign measurement. The emphasis is shifting from creative novelty to data-driven insights and analytics.

• Adaptation to the creator economy: The integration of influencer and social marketing arms within agencies reflects an adaptation to the creator economy. This approach allows brands to engage with audiences in more authentic and creative ways, leveraging the influence of social media personalities and platforms.
  

3. More Project Work, Less Traditional Pitches 

In 2024, we anticipate that more and more brands will be leaning toward more project-based work and run fewer traditional agency searches. We have several reasons for this prediction:

• The cost of a pitch is upwards of $1M with brands footing most of the bill 
• In 2023, agency pitches brought in 35% less revenue Y/Y
• Continued economic uncertainty 

Going into 2024, brand marketers are being asked to do more with less spend. These stats coupled with the increasing amount of resources like Wripple, that make it easy for them to get matched with agencies who can quickly start executing on projects, makes us believe that in the new year, many brands will ditch the traditional pitch and look for faster means of completing project-based initiatives. 

4. The AI Revolution Will Continue to Grow

Marketers will continue to focus on leveraging AI in 2024 due to its transformative impact on various aspects of marketing. Primary areas of focus will include hyper-personalization, content creation, and predictive analytics. This will enable marketers to create highly targeted and personalized campaigns by analyzing vast amounts of data, thus offering customer experiences at an unprecedented scale.

The challenge will be balancing this personalization with consumer privacy concerns. AI’s integration into marketing and technology software will impact all facets of marketing, offering both opportunities and challenges. Marketers will search for solutions that help them maintain content authenticity and originality. 

AI’s role in predictive analytics will also be significant, aiding marketers in foreseeing market trends and consumer behavior. Overall, the integration of AI is expected to drive marketing towards more efficient, responsive, and customer-centric approaches.

What These Trends Mean For Sellers in 2024

With these expected trends, ad tech sellers, sponsorship sellers, and ad agencies need to focus on aligning closely with client needs, specializing in high-demand services, adapting to market consolidation, leveraging AI and technology, and being flexible and responsive to project-based work demands. This presents several areas for new business leaders to focus on in the new year:

1. Consistently Add Maximum Value

Acquiring a new client costs 5x more than retaining an existing one. To ensure you’re not one of the agencies on the chopping block, take a look at your existing accounts to ensure your team is offering as much value as possible to secure the relationship for the long-haul. A few ways to do this include:

• Develop customized solutions: Move beyond generic service offerings. Tailor your strategies and solutions specifically to each client’s unique needs and business goals. Show that you understand their specific market challenges and opportunities.

• Have a results-driven approach: Focus on delivering measurable results. Utilize data analytics to track campaign performance and make data-driven decisions. This approach will demonstrate your commitment to achieving tangible outcomes for your clients.

• Have regular communication and transparency: Establish a clear and consistent line of communication. Regularly update clients on progress, challenges, and successes. Transparency in your operations builds trust and shows your commitment to their success.

• Always educate and inform: Build a culture that prides themselves on going the extra mile. Always strive to provide clients with insights and knowledge about the latest marketing trends and how they can be leveraged for their benefit.

• Strategic partnerships and network utilization: Always remember that there’s enough success for everyone to go around. As agency conglomerates continue to expand, boutique shops need to find creative ways to offer omnichannel solutions that drive results. If you can’t execute a capability, leverage your network to offer clients additional value through strategic partnerships, expanding their reach and resources.

2. Now’s the Time to Start Proactively Reaching Out to Marketers: 

With this many brands suggesting they are looking for new partners, now is a great time to start building relationships with brand marketers. Getting started can be challenging if you don’t already have an outreach strategy. But here’s our best tips to get going:

• Research and identify prospects: Success always starts with your list. You have to be contacting the right people. Conduct thorough research to identify brands that are the best fit for your agency’s expertise. Look for brands that may be experiencing challenges your agency is uniquely qualified to solve. Not sure what kind of brands to go after? Start by looking at your agency roster and identify right to win clients.

• Personalized communication: No, we don’t mean adding their first name to a mass email. After conducting thorough research, reach out with personalized messages that demonstrate your knowledge of their brand and industry. Avoid generic sales pitches. Instead, focus on how your agency can address their specific challenges or goals.

• Develop a must-try offer: Whether you’re providing a service or a software, provide something complimentary to get your foot in the door. This could be a free trial or a free brand audits or consultation. This can be an effective way to demonstrate the value you can bring to their business while also building trust with the potential client.

• Get comfortable with following up: Email cadences are your friend. If you think you’re being annoying by sending 7 emails over a few months– you’re not. It takes an average of 8 touches to get an initial meeting with a decision maker. So strap in… and get comfortable with following up regularly until they book the call or tell you to go away.

3. AI Won’t Replace You. But It Can Help You Sell More & Should Be Used Correctly.

AI isn’t going to steal anyone’s job in 2024. It is still very much in its beginning stages and is merely a tool that needs to be utilized in your toolkit. But it’s an incredibly powerful tool that should be leveraged both as a selling proposition, and internally to improve your sales processes. 

Using AI as a unique selling point:

Brands are going to continue looking for partners who can use AI to reduce costs and streamline processes and help solve problems quickly. AI innovation will be a unique selling point in 2024 and something partners will get public recognition for. For example, this year Adweek announced the first-ever AI award to MediaMonks for their use of AI in both internal operations and client work. There will be an increased focus on how partners can use AI in meaningful and creative ways for clients.

A few ways you can utilize AI as a unique selling proposition to brand marketers include:

• Predictive analytics for targeted campaigns
• Personalized customer experiences
• Automated content creation and optimization
• Streamlined production 
• Enhanced ROI measurement and analytics
• Combating social injustices and stereotypes through brand messaging 
• Voice and visual search optimization 
• Programmatic advertising
• Interactive and immersive experiences
• Inclusive and purpose driven advertising

AI is still a new territory– and in many cases, it isn’t quite living up to where marketers are hoping it can be.  So it’s important that whatever you are providing brands delivers on the promise you sold. 

Using AI to enhance your internal sales process

At Catapult, AI has been a major topic among our clients and how they can leverage it to enhance their internal sales processes.

Dixie Gilbert, Director of Partnerships at Catapult  commented, “I was just having a discussion about AI prompts and how AI is messing up good content because everybody’s using the same AI cadence.” She goes on to explain that the most important thing to know about AI is that you really have to learn how to prompt AI and then craft your messages around it. It should be a creative assistant. Prompting really holds a key for creative collaboration.” 

Remember, AI is a tool, not a replacement. So when crafting scripts, decks, email cadences using it– remember to proofread and add a human element to everything it produces. 

Conclusion: Close More Deals in 2024

One thing brands, agencies, sponsorship sellers and adtech providers alike share– the economic state of 2024 is unpredictable, yet we are being asked to hit higher and higher quotas.

Right now, expanding your sales budget for tools and adding to overhead may not be an option. But you need senior level sellers out there getting your products and services in front of brand marketers.

If this resonates with you, outsourcing your sales operations may be a great solution. 

Catapult is the industry’s leading fractional new business development firm for agencies, sponsorship sellers and adtech providers. Contact us today to learn more about how we can help you close more deals in 2024 and beyond.

2020 has taught us many things, but one of the biggest learnings has been around most of our agencies’ need to better understand and predict where their future new business will come from. Last March, just about all of us received phone calls from our clients cutting our budgets in half or changing our scope of works (for the worse).  This meant a renewed interest in our new business efforts and trying desperately to fill a funnel with clients that could make up those gaps created by reduced scopes.  

Understand Your Baseline Metrics

The trouble for many agencies is they never established any sort of baseline understanding of their new business process.  Without a baseline understanding of the metrics that get you from a cold call to a signed service agreement, how do you know which levers to pull to make new business happen?

Lag Measures

Many agencies I review find themselves looking and evaluating new business through Lag Measures.  Lag measures indicate the current or past state of the business.  These are measures like revenue, net profit, or annual contract value.  The problem with looking at these numbers to predict future success is that they are all in the rearview mirror of your new business journey and don’t really predict what is going to happen next.  It’s important to know these values to evaluate where you’ve been, but predicting where you’re going is our aim here. I think we can all agree that our April 2019 revenue numbers didn’t exactly properly predict our April 2020 revenue numbers.  For most, your ACV reduced in 2020 vs previous years, so how do we estimate how many new clients we should or will be winning?

Lead Measures

When creating a repeatable new business process, we need to be focusing on Lead measures.  Lead measures are those that predict future results.  In terms of new business development, this means looking at actions and events that most agencies aren’t typically used to tracking.  Marketing Qualified Leads, Needs Analysis Calls, Number of Pitches are just a few lead measures that can better predict exactly what may be coming in the future months.  

Below is an example of a potential sales funnel.  If you understand the metrics and percentage chances to move from one level of the funnel to the next, then you can better predict and (importantly) ramp up your new business efforts when you hit the hard times or the times of needed new revenue growth.

 

If you don’t have a baseline already of the numbers above to move from level to level in your funnel, take a small sample of the last three months and begin to track this every month moving forward.  Even an imperfect funnel will give you a better idea and the ability to more accurately predict exactly what is coming down the line in the future.  

Better Predictions Means Faster Growth

Better predictions of your new business mean you are able to grow faster, more profitably, and provide an overall better service by being staffed properly at all times for your new clients.

If you need help figuring out your funnel and which metrics you should be tracking in your lead stages, give us a call.  At Catapult, we use these every day to ensure we are growing our own and our agencies’ new business efforts in the most efficient way possible.

 

 

 

By Jody Sutter

New business is one of those responsibilities that should be fully integrated into your daily schedule—some days in a more active and focused way, other days more passively and opportunistically.

But for a lot of agency leaders, it’s not.

New business is an activity for times when the pipeline dries up. Or it’s what you do when you’re in a competitive pitch. When it’s not a daily habit, consistent action is hard to sustain—because it means starting over again and again and again…

You’ll reach points when you conclude you can’t go on like this any longer. You’ll pause, gather your team, and brainstorm ideas for a better business development strategy. 

There’s satisfaction in developing new ideas. It’s inherently optimistic and creative! You remove yourself from the daily grind and whisk your team off to an inspirational spot to think big strategic thoughts and reshape your agency’s destiny. And I encourage this! In fact, I conduct these kinds of workshops. They’re energizing and I get satisfaction from watching an agency team walk away excited about the plans they’re going to implement.

What I don’t enjoy is watching them neglect those plans as soon as the daily grind takes over again.

Good Habits are Helped by Strong Frameworks

Acting on new ideas requires us to form new productive habits, which is a challenge in and of itself. I’m not an expert on how humans form habits, but I can speak from personal and professional experience that good habits around business development are aided by strong frameworks.

I created such a framework a few years ago after I’d had an epiphany: if money, time, and resources were no object, an agency would do it all—blogs, Instagram Lives, webinars, proprietary research, PR, prospecting outreach… Anything that you didn’t like to do or have time to do, you’d hire someone else for or you’d outsource it. 

But time and money is always an issue. And agency leaders are rarely going to do stuff they don’t like to do. 

What I realized was that to make a business development strategy stick, it must be based on tactics that are right for that agency.

This inspired me to create the New Business Ecosystem™ framework.  

A New Business Ecosystem includes anything your agency uses to support business development, from a pricing proposal to a website to social media strategy. Like a natural ecosystem, it promotes growth when the interconnected parts are suitable for the environment. 

When I’m building a New Business Ecosystem with my clients, we look at all they’re doing and all the tools they’re using and we assess their utility against goals, resources, and strategic positioning. We ask:

• Are the tools and activities right for the culture and environment?
• Do they encourage and nurture growth?
• Do they support the agency’s goals?
• Are there too many tactics to easily sustain?
• Do they all interact in a healthy way? 

Usually, the outcome of this exercise results in a sort of kanban board for new business. From there we can create a plan and define the activities required to get to the goals

Filling the Void between What You Want and How to Get There 

This plan helps fill in the void between stating a goal, such as increasing revenue by 25%, and taking the right steps to achieve it.

A New Business Ecosystem offers you not only a bird’s-eye view of the activities that are most likely to get you closer to your goals, but a roadmap for what you must be doing on a daily, weekly, monthly, quarterly, and annual basis. 

When you know exactly what actions to take, and those actions nudge you out of your comfort zone, you start to see progress. You can apply this to any goal you have in life, whether it’s to retire at age 50, learn how to juggle, or grow your agency’s total revenue by 25%.

Your New Business Ecosystem will be custom to your agency, but here’s my advice on the actions you should take on an annual, quarterly, monthly, weekly, and daily basis.

Annually 

Your New Business Ecosystem is essentially your new business plan and you should evaluate it annually. Look for opportunities to systematize and scale what you’re already doing if it’s producing good results. And explore what can be added or taken out of your ecosystem to keep it at an optimal level of health.

Here are four areas to consider:

1. Recommit to your core tactics. Analyze the core business-generating activities you’ve chosen based on your new business strengths. (Here’s a quick and fun quiz you can take to find out your new business strengths profile.) Are they working? Do they need improvement or optimization? Can they be delegated to others or are they still dependent on your involvement?
2. Add complementary tactics. If you’ve got the core activities running on autopilot, consider adding complementary activities that support them. For example, if you’ve got momentum behind a speaker strategy and it’s starting to generate leads consistently, complementary activities might include nurturing those leads with a webinar series, getting a better CRM tool in place to manage those leads, or adding functionality to your agency’s website to better engage leads.
3. Assess the health of intellectual property. Review IP workhorses like case studies, team bios, and credentials documents to see if they need updates. These don’t change frequently, they do require care and attention if they are going to work effectively. Be proactive instead of being forced to make last-minute and hasty updates to fulfill an immediate need. 
4. Review and recalibrate new business policies and procedures. Are they still working smoothly? Do they help you make the right decisions about what new business to pursue?

Quarterly 

I’ve become a big fan of quarterly working sprints to accomplish goals (I think they can be so effective I’ve re-engineered most of my programs to include them).

Quarterly sprints can be a great way to tackle both necessary projects, like a website redesign, that easily get pushed aside by daily emergencies and distractions as well as “always improving” projects—projects that push you into new areas and have a positive effect on your new business operations over time. These are often the complementary activities I mentioned in bullet #2 above—initiatives you’ve been wanting to start but never seem to have the bandwidth for.

For your first foray into quarterly sprints, choose one or two goals and make them manageable. Outline a plan for what must get done on a daily, weekly or ongoing basis and use that plan to assign yourself and your team weekly actions that, if taken, will lead you to successful completion. 

This approach works because it deconstructs big, amorphous statements like, “we’ll improve how our agency generates leads” which can be hard for teams to convert into action, into a tactical road map that everyone understands and follows. Seeing progress being made instills a priceless sense of satisfaction.

Daily, weekly, and monthly

I lump these together because they’re all related to frequent and consistent action required to keep your new business ecosystem humming.

Plus, they tend to vary by goal, individual, and agency.  For example, if your core activity is outbound sales, your activities will include things like daily list-building and sales calls. If your activity is content marketing, your weekly and monthly activities will be related to keeping the content engine running: writing, shooting, editing, formatting, distribution, and promotion.

And, of course, always include:

• A regularly scheduled new business status meeting. Many agencies have these weekly (a few neglect to have them at all, which astounds me). I like a biweekly cadence, which frees up time on the schedule and allows you a wider perspective to see progress over time.
• Pipeline report updates and distribution. I’m all for a wider distribution of the pipeline report, especially if you expect most people at your agency to be involved in new business. Consider having a modified report that omits sensitive financial information that you can share with your larger team. I bet you’ll find they feel more invested and willing to participate.

And, finally, document ongoing activities that won’t be going away any time soon in an operations manual so that you can grow and scale them as your agency grows.

I was recently a guest on Marcel Petitpas’s The Agency Profit podcast and Marcel and I talked in-depth about how to operationalize a new business strategy, including many of the points I make here (if you want to take a listen, click this link). He asked me how an agency owner can stay accountable to goals and objectives when it’s so easy to get pulled off track by client needs.

My answer: lean on your New Business Ecosystem. 

Having a plan and supporting structure in place makes it much easier to regain the momentum you’ve lost. It eliminates that common and demotivating feeling of “starting from scratch”. 

Because the fact is you will get derailed (I haven’t figured out how to crack that case yet but when I do, you’ll all be the first to know)—you just want to minimize its impact by going back to the actions that are right for you. 

About The Author:

Jody Sutter, is the owner of The Sutter Company, a business development consultancy that specializes in working with leadership at small ad agencies who are underperforming when it comes to winning new business and would like to win the right clients consistently but also make the process less chaotic and exhausting for their teams. To learn more about how she can help your agency, schedule a free 45-minute consultation here. For more information about The Sutter Company’s programs for optimizing new business at small agencies, go to www.thesuttercompany.com.

Two minds are better than one.  At least that’s how the old saying goes.  But what happens when those two minds (or three or four) get caught up in a groupthink cluster?  While the idea of working together to gain consensus around important growth driving topics (like new business positioning) might sound like a great idea, it’s important to steer clear of the potential dead end road groupthink can take you.

So why is consensus so dangerous, especially for agency new business?

Similar past, similar future

Many times agency executive groups that are setting out to develop unique positioning come from places of similar past experiences.  Most of our agency VPs and C Level execs started somewhere outside of new business.  Perhaps they started within Account Management or creative, and as such, they have very little experience within the new business world.  This then shapes our opinion of how new business is done, how it should be done, and what works and doesn’t work.  Often, they have faced new business failure in the past when they tried something new, and because we all are hesitant of repeating a mistake, we agree to steer away from that “new” again.

The problem with steering away from the “new” is that an agency can wind up repeating their mistakes again and again, because they never truly change.  True change comes from a holistic look at how you approach new business, not just purchasing one piece of new technology or a new website design.  While those pieces are important and can affect some of our experience and results, they won’t fully change your new business for the better.

Let’s look at a real life example:  ABC Agency’s executives have decided that their positioning is great… “we solve problems that can’t be solved”.  Because they all have the same experiences in the agency world, nobody stops to ask questions like:

• Is this really interesting for new business?
• Is this positioning true of what we have done in the past and want to go in the future?
• Does this even make sense!?

So if your agency new business positioning discussion seems to be running uncomfortably smoothly with nobody challenging one another, think about applying some of these ideas:

• Invite someone outside of your exec team to the positioning meeting. Maybe even invite someone from outside the agency to get an outsider’s feelings on your positioning.
• If you’re the leader of the meeting, listen to other people’s ideas before expressing any of your own opinions. Leadership opinion can sway opposition opinion and accelerate groupthink.
• Challenge any assumption that has 100% approval. You may find it is a solid assumption, but challenging it can also be a great way to identify a blind spot.

Those few steps can help ensure that your new business efforts won’t get self-sabotaged with groupthink consensus.  Having that outside perspective and the openness to challenge assumptions can ensure that your agency stands out among your competition.

Most agencies are running their new business programs with as few human beings as possible. With fewer people, the need to be efficient and effective is paramount. Considering the martech space has expanded at an incredible rate, it can be difficult to know exactly which technologies will help and which will hinder your new business efforts. Agency efforts are different from other sales needs, so we wanted to concentrate on where your money and time is best spent to make technology your best tool to drive new business.

Mandatory technology for agency new business from Catapult New Business on Vimeo.

In our latest webinar, we set out to give our agencies insight around technology that we see as the most effective for new business. Matt Chollet, EVP of Agency Growth at Catapult New Business, discussed which types of technologies that you need and then offered suggestions from our extensive experience with different brands.

What we covered:

• The best technology stack for agency new business
• Small staff? Where technology can make you more efficient
• Where to best spend your tech budget for more leads
• Specific technology reviews used in agency biz dev

 

Here at Catapult we are all about understanding our agency’s prospecting and pipeline needs. If you don’t know what it takes in terms of activities and numbers to generate a winning piece of business, how can you develop a successful plan to do just that? As an easy tool, we created a Pipeline Calculator that breaks down this process into three simple chunks to help our agencies get a head start on understanding their pipeline numbers.

Goal

The goal section is made up of three main pieces – revenue goal, the number of contacts in the database, and average first-year value of a deal. Your revenue goal should be pretty straightforward in this calculation. We are looking at the amount of new revenue generated from new business (not organic growth). The number of contacts in your database is essentially how many individual contact prospects you’re currently reaching out to in your content marketing. This is a number that is easily changed and can have a major impact on your new business success. Often though, we see people trying to adjust other numbers and holding to very small databases with zero success. Resources like Winmo allow for focused growth in these databases to hit the quantities needed to be successful.

Lastly, the average first-year value of a deal is limited to just this first-year value, so in these calculations we are not over-valuing each deal for our short-term prospecting efforts.

Pipeline

This is the area where many agencies struggle. Understanding each stage of the sales pipeline process is something that most have never done. We broke this section out into four main parts – Initial Approaches, 1st Meetings, Needs Analysis, and Pitches. For many of our clients, turning the amount of Initial Approaches into 1st meetings is the biggest area where we can provide improvement for them. Most agencies aren’t making a lot of proactive introductions to new brands. As a result, they are limiting themselves from an initial database size perspective, and their conversion rate in this area is also very low. For any sales person this is going to be a smaller number, as we are fighting through initial qualification, awareness, and timing issues to move these prospects to first meetings. With that knowledge, increasing your database size and improving your approach are paramount.

We also find that many of our clients initially overestimate their win rate on pitches. Anecdotally, I can tell you that when I talk to agency principals and owners, the win rate is often overestimated while a New Business Director may often underestimate. I think this is purely a function of perception given how much they are both involved in conversations with new prospects. Our advice: Be conservative on your pitch rate win percentage and if you overperform it, all the better.

Results

From here, we should have a good understanding of both the number of new clients that we will win based off of percentages, and the total revenue generated from new client wins. Disclaimer: There are many factors that go into your individual success, such as time, skill, resources, etc. This calculator should be used with the understanding that it is giving you a baseline of understanding of different areas of your pipeline process that you need to consider when both setting goals at the beginning of the year, and as your year progresses.

You should be using this calculator to understand where you might be underperforming. If you find yourself lower than average on initial approaches, then you can fix that area. If you are generating enough meetings and pitches but not winning business, no worries. We fix our pitch materials. If we are fine on all of our pipeline stage percentages but still not getting enough meetings, then most likely we need to look at how many prospect contacts we are reaching out to in our database.

Hopefully, this calculator gives you an initial guide to your proactive prospecting efforts!

At some point, every new business person has been presented with this situation: A prospect comes to us that heard great things about what our agency does from a previous client and they think we are a great fit for them. Unfortunately, we don’t think it’s a great fit. They could be too small of a partner, in an industry we don’t want to work in, or located in an inconvenient region of the world. Whatever the reason is that they aren’t a perfect fit, we are left with the problem of needing new business, having an “easy” win standing in front of us, but possibly taking on another client that could be more pain than they are worth. What do you do?

Whether or not you choose to work with the referral above, there is an easy solution to the dilemma. Actively seek new referrals and STOP WAITING for them to come to you. If you are trying to truly grow your agency this year, sitting back and waiting for those referrals will not lead to double-digit growth. We need to proactively build a referral machine that will generate conversations between our networks with companies that we actually want to work with. So how do we go about doing this?

Creating a true referral machine has a ton of different pieces that incorporate almost every piece of your agency. Your marketing, sales, account management, executive team, and social presence all need to be aligned in order to really build a scenario where referrals produce themselves naturally in an organic way. If you want a great book on referrals, I would recommend “The Referral Engine” by John Jantsch. While he has gone through many of the points above, the one that I believe is most applicable for my new business directors and easiest to institute immediately is the idea that “the most easily referred companies are naturally social”.

So what is “naturally social”? In the new business world, to me it means that you are creating content that invites conversation, telling stories via blogs or video, working with partners to deliver content that is of value, and most importantly, actively having conversations within your immediate and extended networks. The last part is where we tend to see people who fall off the most, reaching that extended network. We all work to build these LinkedIn networks, and then we find ourselves only really “liking” content or posts that come from those that we know the closest. Well, those folks are already the most likely to send us a referral if they come across one, right? What I want to push my new business directors to do is find specific companies that they want to work with and then utilize those extended (and less used) network contacts to generate a conversation. There’s a really simple process that you can take advantage of tomorrow to do this:

1. Build a list of prospect companies

2. Search each company in LinkedIn and find their most applicable contact for prospecting that is also a 2nd-degree connection.

3. Identify your shared connection with that prospect and request a referral directly to that prospect company from your shared connection.

Seems simple right? Here’s the key part – make the referral EASY for your shared connection. Too often we either a) simply don’t ask our shared connection for a referral or b) we put the onus completely on them in terms of coming up with the reason for the referral. The idea here is that we want the referral ask to be specific, time sensitive, and pre-written for our connection. This allows them to simply forward on a message with as little work as possible for them. And because your message is time sensitive in nature, we have a built-in urgency to the request for referral.

Here’s an example:

Hi (First),

I was hoping you could help me.

You’re connected to (John Smith) of (Company) and I have some (Valuable Marketing Intelligence) that I’d like to put into their hands, and it’s a bit time sensitive. 

Since you two are connected on LinkedIn, I hoped you’d be open to introducing me today with the message below?  Feel free to edit as you desire:

 -Or- 

(First Name),

It’s been a while since we last connected – hope all is well! I thought you’d be interested in this introduction to Matt Chollet (cc’d) who has competitive market intelligence on (Company) that he wanted to ensure got into your hands today – it’s time sensitive and may impact your competitive media investments in Q3.

I’ll leave it with you both from here, hoping this is a valuable connection for you.

Best,

The essence of the above sample is the fact that all your referrer has to do is hopefully copy and paste two sentences, sign their name, and move on with their day. By making it simple like this, you take away the hurdle of creating a whole new message themselves.

By building a very simple, straightforward referral plan like this, with a straightforward referral request, we can begin to proactively create referrals around prospects that we actually want to work with.  Hopefully, this pushes us from a place of hoping and wish for referrals, to actively pursuing and engaging referrals on a daily basis that can convert the types of prospects we really want to work with.

Any successful new business strategy starts with knowing who your target audience is. As an agency you have likely already honed in on your unique value proposition and are ready to start engaging with prospective clients.

“A critical piece many agency new business professionals miss out on is making sure they have a broad enough target audience to sell and market to. We find that the key to fueling your marketing and sales efforts is an effective, targeted AND substantial audience.”

When working with our clients, we’re often asked, “How many prospect records do I need?” To get the most from your outreach, we recommend a minimum of 3,000 with the goal of having 5,000 that you can continuously engage with.

Those numbers might seem like a lot but keep in mind there are tools to help you build out your prospecting database. In fact, many of your agency peers are likely using one. According to the 2016 Mirren/RSW Mirren New Business Tools Report, 9% more agency executives are investing in list building tools (compared to 2014) to help grow their new business. Our clients typically use Winmo, however there are other resources like Hoovers, Data.com and LinkedIn to help you create hyper-targeted data sets.

The importance of audience segmentation.

As you continue to grow your prospecting audience, segmenting the data into relevant batches is very important as it keeps our content highly relevant, even when we begin to do outreach in groups of hundreds or thousands. We are not looking to spam the world with emails and phone calls, we are trying to deliver less often, but with more impact.

“By properly segmenting our audiences, we are able to ensure that the right content gets in the right hands at the right time.”

When I begin to look at a new agency list, I often segment prospects into these three groups to help us prioritize outreach and customize content:

1) Right to Win

Right to Win clients are those that are a perfect fit for our solutions. We set parameters for what a perfect client is for our agency: what issues they have, where they are and what they specialize in. If they fit those criteria, then they HAVE to be working with us and we need to talk to them in such a way that shows our perfect fit. This is likely to be a somewhat smaller group, as we are talking about perfect here. The goldilocks zone of prospects!

2) Great Fit

This will be your biggest group of prospects. They have a problem we can solve, but may fall just outside our parameters on a few criteria here or there. Maybe they are a bit outside of our typical geographic region, slightly bigger or smaller in revenue ranges, or they’re an industry adjacent to our sweet spot. If they fit 95% of our criteria and we can recognize and solve their problems, then I want to be sending them content. Too often I see agencies immediately give up on quality prospects because they put so many restrictions and criteria on who they can work with. If you want to grow, consider widening that net just a bit.

3) Stretch

This is may be the smallest group, as they are more of ‘passion projects’ from the team – or the ‘great white whales’ that would be incredible to land. They are probably not worth committing the majority of your 1 to 1 new business time to chasing, but landing one could make a huge difference in morale or revenue. Putting them in your drip content is a great way to keep them warm and fish a bit, without taking away from your time that you spend on those prospects that are going to be your stable base of revenue in the future.

Keep in mind this is just one way to segment your data. Every agency has a different strategy, and how you go about slicing your sales intelligence might be very different. Some find that the easiest way to group prospects is simply by industry vertical, while others choose to base their groupings off of job titles. Taking the time to think through who you want to be working with, and more importantly, what your prospects care about, will help you determine just how your agency should be dividing your prospect target list.

Lastly we need to remember, we are segmenting these groups because we want to get bespoke, quality content in front of the most appropriate people. Each new group you create is going to require their own set of targeted communication and targeted content, so do not break these into ten different target groups if you do not have the bandwidth to create ten different content tracks. We want to do everything we can to broaden our reach while staying highly targeted and focused in order to remain relevant. Taking the extra time to think through these audience segmentation lists and properly grouping them can save you an immense amount of time on the back-end.

At the beginning of every year we all make resolutions to change something about ourselves either personally or professionally. If you’re an agency, you’re likely vowing to be more proactive with your new business resolutions and strategy in 2017. Don’t worry, about 85% of all agencies are in the exact same boat.

For any resolution to be successful however, there must be a plan in place and accountability against it. Throughout our discussion we will cover the following problem areas and also share KPI’s to ensure you’re tracking your progress.

• Dedicate more time to solely focus on new business
• Make a more compelling first impression via email
• Leave a phone message someone might actually respond to
• Build a social referral machine
• Write better content for our website

5 Resolutions Agencies Need to Make (and Keep) in 2017! from Catapult New Business on Vimeo.

The most effective new business processes turn prospects into leads by educating those prospects on how your products and services can solve their specific problems.

But when creating a proactive new business program, many teams struggle to know where to begin. We always point to these three areas to start your plan of attack: Audience, Content and Execution.

Audience

The first and most important step you should take when deciding how to begin your proactive outreach to prospects is to determine who your audience is. You need to know who your target audience is so you ask the right questions – who, why and what – to help narrow who you are marketing to. You must clearly define who your “right to win” clients are. If your team is perfectly positioned to provide the best service possible to a prospect in your niche, that’s a right to win client, and they should be working with you.

After you create your right to win list, you can begin including additional targets you see as great fits, which are a slight reach from your perfect right to win group. Agencies will often limit themselves by “fishing in too small of a pond,” or creating lists of prospects that exclude too many winnable clients. Create a realistic and appropriately sized group of contacts to attack with your approach. A great way to start thinking about Audience is to ask the following questions:

• In what areas is the agency most profitable?
• Who are you talking to now?
• What kind of business do you walk away from?
• What brands should be clients?
• What areas are most interesting to the team? What is the team passionate about?

By asking these questions, you’ll be able to determine who your audience is in a very specific, lead-driven way.

Content

Content drives just about every aspect of what we do in our lives—professionally and personally. In new business, you need to provide content that your new, specifically targeted audience wants to consume and share online. When getting started with your content strategy, start slow and don’t overextend yourself.

We’ve found that when teams commit to too much, too soon, one of two things happens: a) they burn out quickly on the process and it becomes a chore creating unique, branded content or; b) they begin building too much around a single whitepaper/eBook. Long-form content can be beneficial to your content strategy, but be careful not to let it consume hours of labor or hinder your ability to pivot across multiple audience groups.

When deciding what content should live on your editorial calendar, ask yourself questions like:

• Why does your agency exist? (less about what and how)
• What’s the one thing you do better than anyone else?
• What are the benefits of working with your agency?
• What type of work is outside of your scope? (this will help you drive more qualified conversations)
• What business problems do you solve for the identified prospect categories?

Content plays a key role in advancing your new business strategy, and increasing your prospects both within your targeted audience and outside of it.

Execution

We all dream big about winning new business, but you can’t approach that dream in an ad hoc manner. You need to have a plan set in place that is consistently repeatable, with very defined goals, measurements and activities. Your plan should involve everyone in the new business process—from Sales and Marketing to Management. At Catapult New Business, our goal is to always set a process in place that can be seamlessly transferred when changes to the team take place. During the execution phase, these are important questions you should ask:

• Who from the in-house team will be fulfilling each role in the sales/marketing process?
• What technologies do we currently have in place?
• How do we want to approach new prospects?
• How have we approached prospects in the past? What has worked best?
• Who has typically been the most receptive to our messaging?

A critical part of execution is how you leverage the content you’ve created, and the process your sales and marketing team uses that content to drive 1-1 sales conversations. By using your content to engage more often with prospects, you’ll see more opportunities to win clients.

Need help identifying a strategic plan of attack for winning new business? Contact us to learn more about how Catapult New Business implements successful new business processes for agencies.