New Business Intel

» Agency New Business Killer or Promoter: Your Director of First Impressions

You are judged on first impressions

A recent survey reveals that only one in three agency receptionists meet the characteristics of a Director of First Impressions. Staffed well and you'll have another new business weapon in your arsenal.

Prospects start evaluating your agency on their first interaction, which is often the person who answers your phone.

Done well, in the eyes of your prospect or client, your agency may gain a competitive advantage over anyone else they're talking to. Done poorly, and well...they may dread the idea of calling, and won't.

Personally, I've been struck by the rudeness of receptionists at certain agencies. To get a better feel for how widespread the problem is, I asked eleven of our sales and new business people to give an overall grade to the receptionists they speak with at agencies all over North America. Now, these eleven speak with about 35 agencies a day, so that's about 385 per day, 5 days a week, 50 weeks a year. That's a lot of agencies, so while not scientifically based, it's a decent sample.

In answer to the question:

What percent of agency receptionists fulfill the role of a good Director of First Impressions? Only 34%.

There were some highs and lows (e.g. New York agencies: 5%), but even accounting for them the average was the same. This is not good news for ad agency new business.

What to do to fix the problem?

Below are some suggestions. I'd like to thank Jann Driscoll from Catapult New Business who significantly contributed to the list. She used to work at Cox Communications and for a time was in charge of training people in this critical role.

1. Evaluate how you're doing. Call in from a phone your receptionist won't recognize, or ask a friend to do it for you. Evaluate how they handle the call.
2. Think about the skills you want in the role. A director of first impressions needs to have a passion for the agency and also be able to do a tough job - be the gatekeeper, research director, operator, friend, and of course the first impression anyone has with your brand.
3. Teach them your brand. No one off the street can possibly step in on day one and understand the history of your agency, its culture, positioning, etc.
4. Set expectations. They need to know that their job is making a superior first impression with every human interaction….never just passing someone off, always exuding empathy, courtesy, and confidence, and always demonstrating that they are a true resource for the person on the other end of the phone.
5. Train them in customer service. This means both internal and external customer service. How you want them to treat employees is as important as how they're to treat prospects and clients.
6. Broadcast their title. Put it on their business card, on their employee file, on your website. Let them know that their role is critical to your future business success.

The challenge for most agencies is that the "front desk" job is often taken for granted, and perhaps even considered a necessary evil. If senior management makes sure that your Director of First Impressions is welcomed into the business, treated well, and provided ongoing coaching and encouragement, you'll have created another member of your new business team.

So, you must be asking yourself, "Who does it well?" Well, here's one agency that does: Brains on Fire. if you want to hear what a great Director of First Impressions sounds like, give them a call. If you want to see what one looks like, click here!

» Ad Agency New Business is a Marathon, Not a Sprint

One benefit is time to think and plan

In a recent post I wrote about the importance of getting away from ad agency new business to get refreshed and re-energized. But there's more to it: it's taking a long-term view of the work you do.

As a former long distance runner, I often describe work as a marathon, not a sprint. This metaphor helps me to pace myself, set goals, train properly, set realistic deadlines, and think.

Here's what I mean:

• Pace: Unless you're an elite runner, you can't sprint a marathon. If you do, you'll burn out. The same applies to work. If you work seven days a week as hard as you can, before too long your productivity will plummet.
• Goals: Runners set many goals: total miles per week, time per mile, miles for long runs, short runs, etc. Goals for new business might include calls per day, conversations per day, hours spent researching; number of networking meetings, first meetings, RFPs submissions per month; wins per quarter; win rates, etc.
• Training: Marathon runners often train 5-6 days a week. They run in the rain, snow, heat and wind. Nothing stops them. Do you train that rigorously at work? Most of us do initially, but then settle into our routines. Are you creating new challenges weekly? Monthly? Are you training for your next job, and training someone to replace you?
• Realistic Deadlines: Runners plan to run a marathon in the future, because they know it takes time to prepare. At work, think about setting deadlines for yourself and your team that are challenging, yet realistic. Occasional sprints can be great for team building, building your culture, and overall morale. However, too many "invented crises" will wear you out.
• Time to Think: Beside the endorphin rush, for me the best part of running was letting my mind go. I would often head out for a run when faced with a difficult problem. By the time I got back, I'd figured it out. You can't do this when you're sprinting. Similarly, at work, you if you're always head-down sprinting - fighting fires, or dealing with client or employee issues - you won't have time to think. Perhaps you can block quiet time off on your calendar, or go for a walk at lunch or schedule workouts a few times each week.

Success comes in many forms, but one thing is certain: if you burn out early any success will be short-lived. You may find that thinking about work as a marathon will build your endurance and productivity.

» Negotiate to Win New Business For Your Agency, Without Giving Away Your Profit

Resist pressure to reduce your fees

A recession is a scary time for the person trying to maintain the financial health of the agency.

I got into a conversation with a fellow CEO the other day about the pressure agencies are under to cut prices to win new business. We shared notes on what we're seeing when it comes to price negotiation. The top three things we identified:

1. Senior executives dropping their prices, fees or hourly rates upon request.
2. New business people offering free work or other freebies at the first meeting.
3. Quickly matching competitors fees as soon as a prospect mentions that they're speaking with them.

Pressure on price creates a dilemma for an agency

• If you cut your fees, you create a precedent for the future - you're willing to work for (much?) less than stated rates.
  
• If you don't cut your fees, you may feel you won't have the revenue you need to avoid layoffs, or worse.

I know from experience that there's serious pressure to lower prices in a recession. Sometimes it feels like the easiest way out is to succumb to the price-reduction pressure with a rationalizing comment like, "It's what we have to do to survive".

But I disagree. You can win and not cut your rates, or perhaps only drop them 1-2% . It comes down to your negotiating skill. There's so much written on how to negotiate - just do a quick search and you'll find reams of information.

So, I'll just offer four suggestions - things that I've found to be successful in good times and bad. Hopefully they'll work for you, too:

• When asked for a better rate, think before you speak. For example, what value-add can you offer that doesn't cost you much, instead of reducing your rate?
•  Don't believe everything you hear.  Particularly in larger client companies, those charged with negotiating are very skilled and are able to tell a compelling tale of woe. Recognize that it may not all be true! Consider the negotiation a dance: you have something they want and they have something you want. Be prepared to tell your own stories and stand firm on your quality and value.
• Just say no, and then be quiet. Say "no" and then present a logical, persuasive argument why you won't reduce your fees, and then stop talking. Be comfortable with the resulting silence. Oftentimes, agency principals are uncomfortable with the silence and consequently offer up a discount, thinking they'll lose the business if they don't. Instead, you may find that your prospect thinks it over and accepts your argument.
• Be prepared to walk. Know what you want and how far you're willing to go on price - beforehand. This knowledge gives you a negotiating advantage; don't be afraid to use it. Your commitment will show - to your opposite number and to your team.

The fun part of negotiating is that, done well, you'll be able to share a laugh afterwards, each side recognizing the other's skills. Caving on price is not the way to earn respect. So, stand firm, proud of your people, your culture, your service and the value you provide your clients.

» Skillful Listening Critical to Ad Agency New Business

Listening = Winning

We've all heard the expression, "People love to hear themselves talk." When it comes to new business, your success is often determined by how well you get your prospects to do the talking.

I've asked some great new business hunters what they think about that and the common answer has been, "When I'm on my game, I'm asking questions and listening really carefully to both what's being said, and what's not."

I've also asked sales coaches to recommend a target percentage for the amount of time a prospect should talk. They've said,

You should be listening at least 60% of the time.

As that's more than half the time the question is, how do you improve your listening skills? Here are the steps that I recommend:

Eliminate Distractions

1. Turn off your cell phone.
2. If you'll be talking on the phone, turn off your computer monitor - unless you need it for your presentation, in which case close your email.
3. Turn away from your desk or clear away anything that might take your mind off your current conversation.

Focus

1. Put yourself in a "student mentality". You want to be curious and open to new ideas. Remember, this is all about what you can learn from the person you're talking to.
2. Think only about your prospect: Give them 100% of your attention.

How to encourage your prospect to keep talking

• Use short, positive prompts. For example, "umm-hmmm", "Oh?", "I understand", "Then...?", "And...?"
• Use open-ended questions. Questions that start with What, Who, Which, or How can expand the conversation.
• Use close-ended questions. Questions that start with Would, Did, Do, Can, Is, Would, or Are can be used to prompt for specifics.
• Restate. Every so often repeat what you think your prospect said. Paraphrase in your own words. For example, "Let's see if I clearly understand..."
• Offer modest feedback. Share short insights and experiences, and then listen carefully to confirm.
• Probe. Ask questions to draw your prospect out and get deeper information. For example, you might ask, "What do you think would happen if you...?"
• Permit silence. Let comfortable pauses and periods of silence slow down the conversation. Give your prospect time to both think and talk.
• Summarize. Interpret what you heard and check for understanding. For example,"So it sounds to me as if...."

What not to do - things that may shut your prospect down

• Interrupt. This is the fastest way to have a short conversation.
• Dig for too much information. Use your intution before asking a probing or potentially too-personal question. Timing is everything. Ask the question too early and you've lost your prospect.
• Advise. Similarly, you are in no position to recommend a course of action until you've earned your prospect's respect.
• Patronize. Eliminate any phrases like, "I know just how you feel" from your vocabulary.
• Give unwelcome reassurance. For example, the common phrase "Don't worry about that" can be taken to mean the opposite, so don't use it. 

Last night, I came across a quote in the book "Same Kind of Different As Me" that's a perfect summary of our listening challenges, and also food for thought:

Those who should listen cannot get beyond the sound of their own voices.

Here's the corollary for new business: "The person talking is the person buying". Your key to success may be as simple as asking qood questions and then letting your prospect talk.

» Prospecting Tip: Use Your Cell Phone for Ad Agency New Business

One of the old rules may need to be rewritten

It wasn't long ago that calling a marketer on their cell phone was considered "too personal".

However, as cell phones are becoming mobile computers, and the lines between work-time and personal-time are blurring, doing so is becoming less verboten.

Just the other day I heard from a new business person who said that after being transferred to her prospect's voicemail, he offered his cell phone number "in case of emergency". Figuring it was worth a try, she called and he answered, and they had a great conversation. He was driving, didn't have any interruptions, and was able to fully engage with her.

The other advantage of this technique: No caller ID.

So, if you're not already doing so, it may be time to incorporate your cell phone into your trio of outreach tools:

• Office phone
• Email
• Cell phone

One other suggestion: Forward your office phone to your cell phone.

You may have had a marketer leave you a voicemail on your office phone in the evening or over the weekend, assuming that you wouldn't be there to answer. If you do forward your phone, though, just be ready to have a surprised marketer on the other end. Be prepared to ask questions and try to engage them, even though it may be Sunday afternoon!

» How to Reach the Marketer Who’s Screening Your New Business Calls

Caller ID doesn't have to be your enemy

How often do your prospects answer the phone?

New business people say that if feels like their calls are being screened. I agree. If your prospects don't recognize your number, they're unlikely to answer.

Here's a method to overcome this issue that I heard about today.

The LM, CB, CB Method. LM mean 'left message' and CB means 'called back'. Here's how it works:

For marketers who have requested information about your ad agency:

• Leave the marketer a message saying that you're calling to follow up on their inquiry.
• Call back a minute later. In the event they've screened your call, you'll go directly to their voicemail and they're now listening to your message, so don't leave another one - just hang up.
• Wait 5 minutes and call back. At this point, they've heard your message and are much more likely to take your call.
• Note: during the 5 minutes after your second call, stay off your phone: this is when they're most likely to return your call.

For marketers you're cold calling:

• Leave the marketer a message saying why you're calling - make it incredibly relevant to them (i.e. not at all about you).
• Call back a minute later. In the event they've screened your call, they're likely to be listening to your message and you'll go directly to their voicemail. Don't leave another message.
• Call back 3 minutes later. At this point, if you left a compelling message and they're at their desk, they're much more likely to take your call. If they don't answer, don't leave another message.

As you can see, the key to success for either approach is the quality of your initial voicemail and your persistent follow up. Naturally, your prospects are likely to be away from their phones a certain percentage of the time. But when they're there and in "phone-screening mode", this approach increases the chance that you'll get through.

I'd love to hear how it works for you.

» Premature Presentation: The Ad Agency New Business Affliction

You may have it if your new business revenue is falling short of expectations

I was doing some role practice recently and observed the following: the new business person asked a few good questions and then, thinking he'd identified the need he could satisfy, switched into presentation mode. The problem was, while he had one need, it was a soft need - not one that was going to win him any business.

Think of asking questions and identifying needs as building a stool: you need at least three legs to make it stable; four will make it rock solid.

If you ask too few questions and go into presentation mode without 3 needs in hand, you'll suffer from Premature Presentation - and will be unlikely to win the business.

When you ask a question, you need to be prepared to ask at least three follow up questions, drilling down each time to identify the ultimate need or issue.

By way of an example, I'll explain what was going on in my role practice. I was playing an agency principal and the new business person was trying to sell me a subscription to The List. I explained that we (as the agency) would never invest in a resource like that, hoping to quickly get him off the phone. He asked why that was the case and I explained that we generate business from referrals and that I didn't have time to make outbound calls or do any marketing. He jumped on that and presented why using The List would save lots of time. While that was very compelling, it wasn't enough.

Here's what he should have asked:

1. Given what's going on with the recession, tell me about the referrals you've generated this year? To that I might have responded that they were down from normal years, but still coming in.
2. How many have you had so far this year? That would force me to come up with a more truthful answer, so let's say the answer is three.
3. How many wins do you need every six months to keep up with clients you lose? Hmmm. I might say, at least two.
4. And can you generate two pieces of business from every three referrals? Nope. If we can close 40% we're doing well.

The sales person now has one need: generate more referrals. But, that's only one leg of the stool!  He now needs to start a new series of questions, perhaps coming back to my available time and unwillingness to do any marketing, in order to figure out what other needs are out there.

As you can see, the idea is to identify a series of needs that you can discuss in order to show how your agency can satisfy them. If you have three, even if one gets knocked out during the the process, you'll have two others to offer solutions for, and the odds you'll win will measurably increase.

Just be sure not to jump to presentation mode too early....

» The At Least 80% Formula for Ad Agencies to Win More New Business

There are two things every client wants. K.I.S.

We all know that when you Keep It Simple (K.I.S.) - I'll assume no readers are stupid - business success comes easier.

I've been thinking about agency-client surveys. Each tells us what clients want. Yet, the results show that a majority of agencies still don't give clients what they want.

So, I've decided to keep it simple.

I'll put money on the fact that at least 80% of clients want two things (and I'm willing to make the bet that 100% would take either one of these):

1. To attract more customers.
2. To retain more customers.

What can be simpler? It's what everyone in business wants. So, why not give it to them?

Here's my thesis:

• If on every new business call...
• If in every first meeting with a prospect...
• If in every pitch...
• If after every win, in every client meeting...

You ask questions to find out how you can help your prospect/client attract and retain more customers, you'll:

1. Discover what they need.
2. Create opportunities to solve their problems.
3. Win more new business for your agency.
4. Retain more clients for your agency.

This is my recipe for success in business. Who's willing to keep it this simple?

» New Business Strategy: Commercializing Your Own Products

Why shouldn't ad agencies or design firms launch their own brands?

In a recent post I mention the opportunity to partner with upstart technology companies as a new business play. This month's Fast Company article titled "Selling Soap. Literally" shows how some innovative agencies and design firms are creating their own products to generate growth and, as a healthy by-product, increase business acumen.

You may be familiar with what Anomaly is doing, but how about Trumpet, Zag or Fuseproject?

Fusebox has created Y Water, a low-sugar beverage for kids, as well as the Jawbone wireless headset - both in partnership with startups. Trumpet was similarly involved with Naked Pizza. BBH Labs launched Zag, which has created Mrs-O.org and lla, while Anomaly has five projects in the process, including Avec Eric and eos.

Here are some take-aways from the article:

Ben Malbon, BBH Labs:

• "By creating our own brands, we wanted to make ourselves recession-proof."
• "Because it's your own money on the table. When it's literally off the bottom line, the best idea must win. You have to be open to people being more expert than you."
• "You get exposure to the full gory detail of how clients make and lose money."
• [employees] "will be able to have a much smarter conversation with a client's marketing director, or CFO."

Carl Johnson, Anomaly:

• "If there is a client, they are in charge..."
• "You have to embrace collaboration."
• "You're much more commercially aware."
• "You can do so much if you know what you're doing with product placement, sponsorship, digital PR. It's that whole "I haven't got any money, so I'll have to think." It makes you much better at grinding out media without paying."

Robbie Vitrano, Trumpet:

• "It's exciting to figure out how to commercialize something that has real substance."

Bart Haney, Fuseproject:

• "Either our ideas will make it or they won't. If a partner starts a business with the idea, we stay on as the creative segment of it. If it gets sold off or licensed, then we take our share."
• "Clients start seeking us out because they absolutely know we understand the path to market and all of their challenges."

If these comments get your entrepreneurial juices flowing, go for it! Why not launch your own brand, either on your own or with a partner?

» Changing Role of Ad Agency New Business Rainmakers?

Adweek doesn't suggest an answer; Here's one.

Large, well-known agencies are getting frustrated at the length of time it's taking to fill open CMO positions and with the lack of available talent, according to a July 13 article in Adweek.

I wonder if they're looking for the right person.

Here are some of the main points in the article:

• There aren't many people who know how to do the job well now - the job is more complex
• Client reviews are more complicated
• The involvement of search consultants requires a skill unto itself
• Holding company-led contents are a whole new animal
• Procurement execs are changing the dynamic

Let's consider some of the things agencies expect this one person to do:

• Market the agency
• Nurture relationships with consultants
• Complete RFPs
• Play well in the sandbox with sister agencies in holding company pitches
• Develop relationships with procurement execs
• Prospect with client CMOs and hold meaningful conversations with them
• Organize pitches 
• Manage a new business team
• Be strategic and contribute at the highest levels of the agency
• Be current with social media, and every other channel that's out there (traditional, new, emerging)
• Understand and be conversant about every agency capability and client, including relevant metrics
• Similarly understand their closest competitors

Oh, and do this in an environment where the new business role is often undervalued, usually seen as an expense - not an investment in future growth and sustained revenue, and is susceptible to down-sizing when times are good.

Volunteers, anyone? No? Okay, let's put a junior person in the role and see how they do.

Pardon my sarcasm, but this happens every day and only perpetuates the problem. Face it: new business development requires sales and marketing talent, which is rarely found in one person. Most importantly, the actual job of generating new revenue is determined by sales skill. Sales is a learned skill that takes time to develop.

I've learned a few things about sales and marketing people over the last twenty-five years. From my experience...

1. Sales people are not paper-pushers. Good sales people are hunters, relationship-builders. Give a good sales person a RFP and while they may get it done, eventually, it's not the highest and best use of their time.
2. Sales people are generally not good managers. Let them sell, without having to manage anyone but themselves.
3. Marketing is not sales. If you want a CMO, hire a marketing person. And if they do well marketing your agency, don't ask them to sell - it's a completely different skill set.

Recommendations:

1. Invest in the sales and marketing of your agency.
2. Hire a marketer to do your marketing.
3. Hire a sales person, or two or more, to sell. Have them build relationships with consultants, procurement, prospects, but do nothing else.
4. Assign the completion of RFPs to someone who does this well, and fast.
5. Assign pitch preparation to your best manager - the person who can really organize people and gets tasks done well and on time.
6. Educate your sales and marketing team about social media - marketing needs to own it, and sales needs to use it to drive sales.

As you can see, new business is not a one-person job. If you structure your agency as your clients do - with a sales and marketing team - you will build your talent base and be able to promote from within. This will eliminate the need to conduct long and fruitless searches for that one person who is rarely found.