We've found that most presidents of firms in the marketing communications industry don't really understand new business. And they don't like it. They sidestep this problem by spending their time working in the firm as some type of technical expert. And they delegate the new business function to others who may not understand it either.
But for the most part, all agency presidents love the chase, the thrill of being in the hunt, late nights and stale pizza, and then having the opportunity to stand up in front of a prospect and deliver the "winning pitch." If I had a nickel for every agency president who told me "just get me in front of 'em, I'll do the rest" I could retire.
But that's missing the forest for all the trees, as the chase is not new business. The key to getting "in front of 'em" and winning is building a relationship with them. Long-term nurturing of prospects is NOT something most agency leaders think about, or like. As a result, most agencies end up pitching to prospects who are already deep into the review, with little time to build a relationship, much less better understand all the nuances of the brand. And now they are involved in a heavily contested review where up to 20 other marketing firms are all scrambling to make the cut.
What most agency presidents fail to understand is that prospects end up holding reviews because no agency was in there early in the process showing the prospect another way. By the time the prospect is ready to buy, there is no relationship-based agency from which he would like to buy. And frankly, if you were in the prospect's shoes, wouldn't you prefer to go to an agency that knows your brand rather than waste time and effort in a review?
Let's face it: the formal review process needs to change. If more marketing firms took the lead in developing their relationship-building skills we would not be subjected to the pain and suffering of giving away ideas for free. Take into consideration that this is all on the whim of a prospect you may have a 1 in 20 chance of winning. In addition, formal reviews can be too expensive for clients. It takes time, management commitment, and in the US, heavy fees for search consultants.
While one of the goals of relationship building is to improve your chances of winning formal reviews, there are additional benefits to nurturing prospects you are interesting in working with. The longer you work to build a relationship, the greater chance you have of closing the business with a fast close. You just need the skills and training to recognize where the prospects are in the review and an understanding of how to move quickly and aggressively to preempt the formal process. Use that insight you've gained from understanding the prospect and building the relationship over time to win quickly, saving the prospect from the long drawn out formal review process.
Agencies are full of winners: the type bred for the hunt, the closers, the hawks. But who on your staff holds the responsibility for being the relationship builder? Who has training on how to cultivate and build relationships with a large number of prospects over time? This sacred role is the secret to many new business wins over time. Some of the largest account swings in history have been the result of an agency well versed in relationship building and understanding how to close.
Most agencies ignore prospects that are not ready to buy now. Those agencies that ignore relationship building as a critical element of new business then have to attempt to swoop in and convince the prospect on the beauty of their idea, the desire they have to work with their brand, how much they looove them! This is a losing proposition if some other agency already has put the time and effort into relationship building.
Sanders Consulting Group (SCG) is a leading consulting firm specializing in the marketing communications industry. Every year SCG works exclusively with more ad agencies, direct marketing firms, design groups, promotion companies, and other marketing communication organizations than any other firm in the world. The firm's experience allows it to understand the issues, speak the language, identify opportunities and implement best practices faster and more effectively. SCG understands that marketing communication firms are different and it is these differences that matter most.
Robert H. Sanders
President
Sanders Consulting Group
800.899.1538
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