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Business Jam insight: How agencies can improve their approach to new business

September 30, 2016 | 10 min read

Last week I attended The Drum Network's first Business Jam event, which included saw agency Kiwi Gray take part on a ‘Boosting Sales’ discussion panel. The room was full of eager, ambitious agencies looking for tips and advice on how to grow their businesses.

Alongside me on the panel were Chris Donnelly from Verb Brands, Karl Heasman from Cact.us and Peter Czapp from The Wow Company. The purpose of the panel was to provide attendees with insights and ideas into how to score some quick wins in terms of boosting sales, winning new business and getting receiving business from current clients.

During the discussion, Peter brought up an interesting point:

“Think what would happen if agencies put as much effort into their current clients as they do into new business. Why do agencies focus so much time on ‘new’ new business rather than maximising opportunities that exist in their current client list? Are too many agencies still seduced by the thrill of the chase?”

I tend to agree with Peter here – there is not enough focus and rigour put into growing existing accounts; I believe this is because a lot of account handlers aren’t challenging their clients and showing strong leadership. If they were to spend more time getting under the skin of their clients’ businesses, then I think they would naturally find opportunities to upsell and cross-sell services. This should also be accompanied by proper targets and roadmaps, with the account manager also being able to adapt to a ‘hunter’ mind-set, rather than the submissive farmers we have created in the modern agency.

After a brief discussion, Richard threw some questions into the mix, whittling down to the successes and issues concerned with new business. Here are my answers to these questions, below:

What are the most common mistakes agencies make when devising and implementing a new business strategy, and how often should an agency review its business development strategy?

A common mistake is that agencies think about themselves and what they want to say, as opposed to what clients want to hear; they don’t tell stories and they don’t treat themselves like brands. If they took a bit more of their own advice when it came to marketing themselves, they would be much better off. If you’ve got a strong new business strategy in place, then it should only require a review once or twice a year. Obviously, it would need to be tracked much more frequently than that and the success or failure of that strategy should dictate how much work needs to be done to change it.

The other huge mistake is that marketing, PR and new business efforts often go off in completely different directions. It’s about creating a proper B2B marketing ecosystem to help build brand reputation and deliver a strong sales pipeline.

Should agencies be weary of the recent Brexit vote in terms of deciding whether to renew their new business strategy? What new opportunities or challenges does this present?

We are currently writing a thought leadership piece about ‘brands with purpose’ and it summarises how those that do have one do better (particularly in times of economic uncertainty) than those without. Essentially, it talks about human decision-making being centred around emotion and brands needing to show emotional intelligence in order to be more meaningful in people’s lives. This can be applied to agency brands showing their understanding of how Brexit is impacting their clients’ businesses. Building a brand is all about defining your purpose and communicating it clearly, going far beyond what you do and focusing more on why you do it. It also means getting your entire organisation to buy into your vision. And if you can communicate your purpose clearly, then you’ll be much more attractive to brands.

What do you feel are the most effective ways to generate new business leads and is this changing in the digital age?

We believe the most effective way of generating leads is through a well thought out B2B marketing ecosystem and landing your message consistently and timely across your available touch points. I think now, more than ever, brands couldn’t be more uncertain and intimidated by the speed of change in technology. There was a time, long before i started working in the industry, when agencies were brave. They stood up as leaders and clients relied on them. When we interview brands, we hear that they are looking for that same guidance and support, and it’s those agencies who are brave enough to demonstrate leadership that will be most successful.

Whether you do this through content, thought leadership or networking, you need to be putting out a strong, differentiating message. As David Droga once said, "For me, bravery is putting your beliefs ahead of self-preservation because self-preservation – for yourself, your career, the agency – clouds everything. Do what you think is right not what is expected. Put your beliefs ahead of self-preservation."

How important is the sales pipeline? How can you stop it running dry?

It is essential, and you can stop it running dry by applying long-term thinking. When I tell people I’m a new business specialist, they think I’m going to start cold calling, hammering the phones and booking them a meeting next week - it’s madness. Kiwi Gray is all about the long game and planning for the future. If you’re starting to think now about how a brand such as Sports Direct needs to embrace technology, then you might get a meeting in two years’ time. Agencies need to be having lots of relevant conversations with brands all of the time and not just focusing on the immediate future. This way you can develop a short, medium and long terms sales pipeline.

Where does face to face networking fit into the process in the present day?

It is important, but I hear from too many people that it’s the ‘be all and end all’ of new business. Agency founders and clients are very busy and unfortunately don’t get a huge amount of time to network. By all means fit it into the schedule, but don’t kill yourself over it, especially if you’re based outside of London and have kids you’d like to spend time with. There are other ways to be successful in new business.

Being highly selective about the events you choose is important as some can be a complete waste of time. Once you’ve identified your ideal prospect profile, it will enable you to push hard on event organisers to ensure they have those types of people attending. Another way of maximising event attendance is by going along to where you advocates or recommenders might be, e.g. clients, other suppliers, trade bodies. Either way, you should be attending with a before, during and after plan in mind and a target for what you would like to achieve.

What role does social media play in new business development?

Not as much as it should. I think social can play a huge role in making agency brands relevant in clients’ lives and telling stories. They also allow agencies to create digestible content and entice prospects in different ways. I think it’s a completely untapped opportunity for agencies. They should be thinking about running creative campaigns and really trying to engage with prospects. Again, it’s a part of the B2B ecosystem and cannot exist without the support of the activity around it. It’s also a great way to amplify your annual content calendar and convey the personality of the agency and what you’d like to work with.

Do agencies approach new business strategically enough or are they still quite scatter gun?

From what I can see it’s all quite scatter gun and last minute. They often ask themselves the wrong questions or spend time chasing the clients that are completely wrong for them. Everyone seems to be enticed by the big brands and do not do enough homework or put enough thought into prospecting and identifying who would be a great long-term partner for them. There appears to be a real lack of sales ‘know-how’ in our industry.

Does cold calling still work in the age of email and social media or should agencies put that behind them?

It can, but it can have a very low hit rate; more often than not, the reason it fails is due to agencies not supporting the caller with the right story and enough relevant content. If you’ve got something different and interesting to say, then a client will listen. All too often, agencies are contacting brands without enough research or a real view on how they can help that business. You also have to think about your sales cycle, value of deals, etc. It won’t work for everyone, but it can still be effective if done in the right way.

What are your thoughts on pitching in terms of investment, time, resource, etc.?

Before agencies commit to pitching, they must put in enough time to qualify the opportunities. Too often agencies chase after something they are never going to win because they are too afraid to ask the right questions. If a client won’t meet you face to face, then why bother? It goes back to being brave again. We need to stop bowing down to client demands. If they want a long term agency partner that is going to be with them through thick and thin and help define the future of their brand, then they need to put in just as much effort as you. You don’t want to come across as desperate – this is not a great start to any relationship, especially when they don’t seem particularly interested.

If you were to give attendees 3 pieces of advice that they can take back to their office today and implement, what would they be?

1) Call me. Just kidding! No, look at your clients latest brand strategy and try and apply at least half of the thinking and methodology you find there to your own agency brand.

2) Think about your purpose, your reason for being. What gets you out of bed in the morning and why people should listen to you?

3) Look at your best long standing client relationships. Deconstruct them as to what makes them so good, write it down and then set about trying to find more of them.

The next Business Jam takes place on 25th October and will cover the art of agency leadership.

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