Build Ad Agency New Business with a New Business Funnel
Prospecting is a numbers game and knowing your numbers is the key to success
by Todd Knutson | published on May 28, 2009
Start at the bottom to end at the top.
When speaking at the 2006-2008 Mirren New Business Conferences, we talked about how agencies should build their new business “funnel” from the bottom up.
Great article, too many agencies guess where they need or would like be without doing the numbers. Also on top of this they can then calculate their true cost of sale too or CPA - cost per aquring a new client. How many meeting go to 2nd meeting then how many go to pitch / brief and what is their win rate. Thsi tells them how much it cost to win a piece off business. I recently did this calcutaion with a very large PR consultancy and found their cost of aqusition was £250K to win fees of £150K - gulp.
In your example how much are six new clients worth compared to the cost of attending 60 meetings and doing x amount of pitches.
This way the agency finds out where they need to improve, is it validating harder the 1st meetings, improving conversions or something else.