My recent survey, targeted at senior agency leadership of small to medium size agencies, found that many were missing critical elements required to deliver consistently superior results. Over two thirds of respondents disclosed that during the last three years, unexpected client turnover has caused them to miss their budgeted agency growth goals.
The purpose of the survey was to gain insight into:
- What tools and approaches are currently being utilized to support agency business growth and profitability?
- Do current agency business growth strategies address five specific growth pillars? (client retention, organic growth, new business development, resource management & optimization and new capability development and cross-sell)
The response profile was very interesting. 45% came from an Integrated Agency, 40% from Advertising Agencies, just under 7% from Interactive Agencies and nearly 9% from other. (Promotion, PR etc.) It was very surprising that not one response was received from a Direct Marketing Agency.
It is apparent from the survey results, that very few of the agencies who responded have a “Comprehensive Agency Growth Strategy Plan”. Most appear to be taking a more tactical approach, implementing various initiatives on an ad-hock basis, with little to no innovation. This appears to have resulted in inconsistent growth and erratic financial performance. The survey demonstrates clearly that when certain of the key elements of an agency growth strategy are omitted, (The 5 Key Pillars) it results in a direct negative impact on their ability to consistently deliver above average results.
Please take some time to review the survey detail. I am certain that you will find it very informative.