Paul Roetzer's Inbound 2012 Presentation

1. AUGUST 29, 2012
VAR TRACK
the art and science of
selling agency services:
how to stop the churn. #inbound12

2. Paul
Roetzer
@paulroetzer
founder & CEO, PR 20/20
author of The Marketing
Agency Blueprint
#inbound12

3. growth is the easy part.
retaining it, and making it profitable,
is the real challenge for agencies.

4. A Cautionary Tale of Churn
@PaulRoetzer
#Inbound12

5. PR 20/20 New Campaign Clients (2009)
‣ 15 new campaign clients
‣ $195,000 in 2009 revenue
‣ $503,000 in 2010 forecasted revenue
@PaulRoetzer
#Inbound12

6. life is good!
@PaulRoetzer
#Inbound12

7. 1 client remains
@PaulRoetzer
#Inbound12

8. avg. client relationship = 11 months
Image Credit: Hollywood_PR

9. 49% of marketers report they will
consolidate or change agencies over
the next 12 months. another 15% aren’t sure.
Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.

10. only 36% of marketers are firmly committed
to their agency relationships.
Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.

11. Churn Factors
agency side
‣ Over promise and under deliver ‣ Financial instability
‣ Focus on outputs, not outcomes ‣ Stretched too thin
‣ Talent turnover ‣ Stagnant business model
‣ Weak processes ‣ Siloed services
@PaulRoetzer
#Inbound12

12. Churn Factors
client side
‣ Unrealistic expectations ‣ Short-term focus
‣ Weak foundation ‣ Marketing technology utilization
‣ Poor management ‣ Conservative business practices
‣ Lack of vision ‣ Sales/marketing team strength
‣ Bad product ‣ Personnel changes
‣ Financial instability ‣ Merges & acquisitions
@PaulRoetzer
#Inbound12

13. the cost of bad relationships
‣ Agency resources (people, time, money)
‣ Opportunity lost
‣ Financial pains
‣ Loyal account neglect
‣ Mental health (of employees, leaders)
‣ Employee burnout and turnover
‣ False foundation (The Red Zone)
@PaulRoetzer
#Inbound12

14. The Red Zone
monitor and grade client portfolio health
45% of recurring revenue is at risk to churn
@PaulRoetzer
#Inbound12

15. Choose the Right Clients
‣ Commit to prospects who value your people, time and energy.
‣ Watch for red flags.
‣ Trust your instinct.
‣ Be willing to walk away.
‣ Take a more sophisticated approach to sales.
@PaulRoetzer
#Inbound12

16. make retention the priority.

17. 1) assess strengths and forecast potential.
2) offer integrated services .
3) benchmark performance.
4) connect actions to audiences and KPIs.

18. 1) Success Starts with the Assessment
@PaulRoetzer
#Inbound12

19. PR 20/20 Inbound Marketing Survey
175+ audits completed
@PaulRoetzer
#Inbound12

20. challenges with the current process
‣ Time intensive
‣ Requires high-level personnel to analyze
‣ Lacks scoring system and visualizations
‣ Not a true assessment of success potential
‣ Fails to properly set expectations
‣ Not scalable
@PaulRoetzer
#Inbound12

21. A More Intelligent Process & Platform
subjective analysis. assessment scoring. automated recommendations.
‣ Assess business and marketing strengths.
‣ Forecast potential for success.
‣ Build an integrated marketing strategy.
‣ Connect actions with KPIs and audiences.
‣ Determine talent needs and team structure.
‣ Forecast agency services costs.
‣ Allocate resources — time and money.

22. Net Marketing Score
Every element of an organization, as it relates to marketing,
can be divided into: assets, neutrals and escalators .
@NMScore
#Inbound12

23. Net Marketing Score
By evaluating and scoring these elements, an organization can devise
marketing strategies ; allocate the time, money and talent ;
and adapt resources and priorities based on performance.

24. Net Marketing Score: Model
Marketing Manager Section NMS = 62%
@NMScore
#Inbound12

25. Net Marketing Score: Model
CEO Section NMS = 38%
@NMScore
#Inbound12

26. Business Fundamentals
‣ Business life cycle stage
‣ Competitive advantage
‣ Financial stability
‣ Growth goals
‣ Leadership team
‣ Pricing strategy
‣ Product/service quality
@NMScore
#Inbound12

27. Marketing Foundation
‣ Brand awareness
‣ Internal inbound competencies
‣ Lead sources
‣ Marketing/sales integration
‣ Marketing technology utilization
‣ Reach
‣ Website performance
@NMScore
#Inbound12

28. www.NetMarketingScore.com

29. 2) Offer Integrated Services
@PaulRoetzer
#Inbound12

30. Published January 2010
@PaulRoetzer
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31. Published July 2010
@PaulRoetzer
#Inbound12

32. 80% of chief marketing officers think
integrated services will increase in
importance over the next five years, according to a
study by The Horn Group and Kelton Research.
@PaulRoetzer
#Inbound12

33. however, in the same study, 60% of CMOs
indicated that they are unable to find an
integrated firm to meet those needs.
@PaulRoetzer
#Inbound12

34. only 9 percent of senior marketers believe traditional ad
agencies are doing a good job of evolving and
extending their service capabilities in the
digital age.
that means 91 percent are not!
Source: The Chief Marketing (CMO) Councilreport More Gain, Less Strain.

35. “There’s an underlying level of frustration among senior
corporate marketers worldwide when it comes to agency
contributions to business value creation,
strategic thinking, and digital marketing
development.”
— Donovan Neale-May, Executive Director, CMO Council
@PaulRoetzer
#Inbound12

36. The New Marketing Services Mix
‣ Search ‣ PR
‣ Social ‣ Digital advertising
‣ Content ‣ Email
‣ Web ‣ Analytics
‣ Mobile ‣ Tech integration
‣ Brand ‣ App development

37. 3) Benchmark Performance
@PaulRoetzer
#Inbound12

38. Build Custom Scorecards
establish expectations.
@PaulRoetzer
#Inbound12

39. 52% of senior marketers do not have a formal scorecard for
rating agency performance on an annual basis.
Source: The Chief Marketing (CMO) Council report More Gain, Less Strain.

40. 4) Connect Actions to Audiences & KPIs
@PaulRoetzer
#Inbound12

41. Deliver Results
let performance tell your story.
@PaulRoetzer
#Inbound12

42. Client Services Series:
The Case of a Hypothetical B2B Account
(Coming in October 2012)
‣ Session 1: The Marketing Assessment
‣ Session 2: The Scorecard
‣ Session 3: The GamePlan
‣ Session 4: The Honeymoon (Q1)
‣ Session 5: The Reality (Q2)
‣ Session 6: The Tipping Point (Q3)
‣ Session 7: The Renewal (Q4)
@PaulRoetzer
promo code: inbound15 #Inbound12

43. breakups sucks.
4 steps to stop the churn.
@PaulRoetzer
#Inbound12

44. 1) assess strengths and forecast potential.
2) offer integrated services .
3) benchmark performance.
4) connect actions to audiences and KPIs.

45. thank you
Paul
Roetzer
paul@pr2020.com
PR2020.com
NetMarketingScore.com
MarketingAgencyInsider.com