We’re continuing with our third and final episode, Optimism & A Few Reasons To Have It , based on our 2020 Agency New Business Report, which you can download below.
In our first two episodes, we had some sobering stats around new business so far in 2020, but there are reasons for optimism looking forward.
For today’s 3 takeaways, I want to stick with optimism, we can always use that, but also a reminder, in your third takeaway, that you’ve got to always remember in order to make your new business program successful.
Let’s jump into your first takeaway:
Last year, 21% of agencies said they had a client that represented 50% or more of their business.
This year, the number dropped to 17%.
Many of you watching have had that gorilla client, or do now, and while it’s fantastic, you also know you need to diversify.
Because there is no such thing as a sure thing. While not a huge improvement, it’s an improvement nonetheless, and makes my heart happy to see agencies actively trying to diversify their client portfolio.
It’s a top 5 reason why agency clients come on board with us.
OK, your second takeaway:
58% of larger agencies are in a competitive pitch 1x month or more often – only 23% of smaller firms are.
Given our sweet spot as a company is small to mid-sized agencies, this is also great to see, from a new business standpoint.
Not that competitive pitches are a bad thing inherently, but for small to mid-sized agencies, similar to answering a lot of RFPs-your resources are finite and it’s tough to stay on that hamster wheel.
The ideal is you’re finding opportunities and being selective with pitches and RFPs.
OK, I mentioned a reminder for your third takeaway that you’ve got to always remember in order to make your new business program successful. Here’s your third takeaway:
73% of agencies say, on average, it takes 1-6 months to move from a first meeting to closing business.
It’s just a fact.
There will be outliers, certainly, and several factors go into that, depending on what type of firm you are and the verticals you work in.
Bottom line: you have to invest your time and effort into the long game.
More on it:
This year’s survey and the resulting RSW/US 2020 Agency New Business Report are of course taking place in a time like no other, and while our survey wasn’t focused around the pandemic’s effects, it was impossible not to ask and answer our questions through that lens.
Over 5,000 Agency executives nationwide had the opportunity to participate, and in fielding the survey, we wanted to discern how the challenges and dynamics of agency new business efforts have evolved with the relentless pace of rapidly developing media channels and marketing technologies.
Our hope is the key findings and implications of the study presented in this report provide value to you as you develop your plans for the remainder of 2020 and into 2021.