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Ad Agency CEO

How Bad Service Screws Ad Agencies

Peter · August 3, 2016 · Leave a Comment

How A Client’s Bad Service Screws Ad Agencies

download bThis is a post about how ad agencies are at the mercy of their clients. I am talking about how agencies can be the victims of clients that do not deliver on their brand, product, and service promises. How the client’s, not the agency’s, bad service can ultimately kill a good client relationship.

A Poor Service Story

I recently made a mistake when setting up a bank transfer using Bank Of America’s online money transfer service. The money went to an intermediary account at Bank Of New York, instead of the actual person I was sending the money to, and I wanted to get it back. I thought that this would be a relatively easy fix. Not!

To make a multi-day bad service story short, I called Bank Of America’s customer service and they passed me on to the bank’s money transfer department. The transfer department’s phone rang for minutes. I tried again. They did not pick up. I called customer service back to make sure I was sent to the right phone number. I was and went through the same no-pick-up routine. I gave up. Note, I am doing all of this from a foreign country, which makes the calling a bit more difficult as I have to modify any 800 or 888 numbers to make these calls.

I tried the whole process again the next day but would not let the customer service rep off the line when she passed me to the money transfer department. Again, they didn’t pick up. The customer service rep couldn’t believe that our call went on ringing. I told her that I couldn’t take this anymore, was fed up and wanted to get off the line. But,she made a big service mistake. She did not note my level of frustration and did not offer her name and contact information for me to follow up and did not ask for mine. Poor service management by the bank.

Later that day I called my Portland bank branch directly and asked for the manager. She told me that she would take care of the transfer mistake for me. I didn’t hear back. I called back the next day and was told that she was working on it and would call back. But, nada.

The next day, I bypassed “customer service” by going to Google and called a random branch in New York. A man answered, wondered how I reached him and after I explained the problem, told me that I had reached the right guy and that he would take care of everything. He took my contact information, sent me a follow-up email and a day later told me that the money would be returned to my account. This was efficient and cool. So cool, I emailed his boss about what a great job he did for me. I know the email arrived because I copied the praised employee. Did I ever get a thanks for the kudos from the boss? Something I always did when one of my agency employees got praise from clients? No. I am now convinced that Bank of America has no customer focus.

When Your Clients Suck, You Suck… Or, The Failure of Performance-Based Compensation

[Read more…] about How Bad Service Screws Ad Agencies

Nike Made Me Sell My Advertising Agency

Peter · June 29, 2016 · Leave a Comment

How Shortsightedness Helped Me Sell My Nike Advertising Agency.

YO, here’s how Nike blew my mind and reinforced my desire to sell my advertising agency. At the time, we were a Nike advertising agency.

I talk to agency owners a couple of times a month about their plans (hopes, that is) for selling their advertising agency sooner or later. Some are young and are being smart about how to begin to create value for a future sale and some are simply ready to move on – ASAP. All ask me why and how I sold my Portland agency in 2011.

There were many reasons for my heading to the exit. I wanted to move on from running an agency (I had been in advertising and marketing since the 1980’s); I was burnt out by the effects of the recession on our profit margin; I didn’t want to hear about the next increase in my employee health plan; I did not like watching advertising becoming viewed as a ‘commodity’; there were simply too many agencies chasing too few clients; I had some pretty good  ideas for creating the “agency of the future” but didn’t have the energy to make that happen and, finally, I got way tired of poor client decision-making.

How Nike Blew My Mind

download qrOne of my agency’s’ more intelligent clients was Digimarc, the technology firm that essentially owned the QR code market (even the technology behind SoundHound) and, more importantly, a technology that could turn a graphic or logo into an active QR code. Aim your phone at a ‘QR’d’ logo (a logo, not a bar code) and it could launch a mobile marketing event. They called it “The barcode of everything.”

Nike was another agency client. We handled their Major League Baseball and college sports programs. As you might suspect, it was very cool to be a Nike advertising agency – especially an AOR agency.

step-1-bird-e1397837442284One day I brought home a Nike running shoe box and thought that Nike should use the Digimarc technology to activate the Swoosh from being a static graphic to being a very active mobile event launcher. The program was simple and global. Over time, Nike would alert its buyers that there was information and promotional value in aiming their phone at the Swoosh logo. I’m talking millions of boxes that could be brought to life, to tell stories, to sell more stuff.

Just think what Nike could do with the box and related videos – a video message from LeBron, new product intros, and on and on. I’m like thinking that every one of the millions of currently “DUMB” Nike boxes would all of a sudden become a “SMART” marketing tool.

I asked our direct Nike clients if they’d make an introduction to some senior marketers to show them how easily and inexpensively (I stress easy and low cost) they could kinda invent a whole new way to add significant value to their packaging. Note, Nike sells… 120,000,000 pairs of shoes a year.

I’m thinking… No-Brainer

We had the meeting, showed the presentation (see below) and instead of pats on our agency backs… we got blank stares. Blank stares! I’m sitting there thinking that this is a major high-value / low-cost no-brainer and these guys didn’t get it. Did not get that for virtually no cost, they could turn their packaging into a significant brand-owned mobile media device. A media and marketing tool that was perfectly targeted to excite Nike’s core market which are, of course, major mobile users.

Frankly, this was close to my last agency-life straw.

I’ll try to be kind here. I guess the Nike marketers were busy. But, I did have a sense of pearls before swine. Am I being harsh? Maybe. That said, I couldn’t believe that one of the smartest marketing organizations in the world preferred to maintain sending DUMB vs. SMART packaging into millions of homes.

Nike advertising agencyHere is one of our “Smart” box presentations.  

The Post-Purchase Mobile Experience.

You tell me, is this idea hard to get?

 

 

 

 

 

How NOT To Build A Winning Advertising Agency New Business Program

Peter · June 10, 2016 · Leave a Comment

How Not To Win While Losing

download loserA friend in advertising sent me the following email. I’ll follow it with some thoughts. I removed names to protect the innocent (actually, not so innocent).

“I read your long blog post, “How to Build A Winning Advertising Agency New Business Program“. Every sentence is worthwhile.

I did new business at Big NYC and Big L.A. agencies, and then at BlahBlah/SF, where it was my sole responsibility for 3 years. The biggest thing I noticed at BlahBlah was that they lost their biggest client every year. If they had shut down the new business operation and had me, or someone like me, be the client retention and client delight manager, the agency would’ve doubled in size just by not losing the biggest account.

What a piece of insight! But, being digital geeks, the principals didn’t like to leave their desks, screenss and their HQ meetings. Instead of wandering the halls of their biggest clients, cementing the relationship and pulling in even more business, they stayed in the office talking about getting new clients, which, as we know, is a low-odds practice.” 

My Unpack

Business Development Is A Must Do

I tell all of my agency clients that they must have a business development plan that runs 24/7 because they will lose large clients every year. This inevitable loss has accelerated over the past few years because an ever increasing number of client assignments are now ‘projects.’ Larger, longer Agency Of Record accounts are becoming scarce. Is the need for a BD plan a secret? No. But, half of all agencies don’t have a sustained sales effort that will replace those lost clients.

Grow Your Current Clients

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My Friend David Bowie On My Personal Mantra

Peter · June 3, 2016 · Leave a Comment

Just Watch & Listen To His’ Advice.

Hey, you could be reading a bunch of marketing… advertising… ad agency… how to do social media, etc. stuff. This is much better advice.

My Friend David Bowie On My Personal Mantra

“If I feel a little unsafe where I am going –  I am going in the right direction…”

 

The 4 Worst Habits Of Advertising Agency Sales

Peter · April 25, 2016 · Leave a Comment

The 4 Worst Habits Of Advertising Agency Sales

images habitsYes, just 4 worst bad sales habits.

After a few years of digging deep into the business development plans and the daily habits of a range of advertising, PR, design and digital agencies, a few common bad habits rear their heads all too often. Here are what I think are the 4 primary bad habits that can be avoided with sound planning and an ongoing system that yields  agency-wide ‘sales consciousness.’

Bad Habits Be Gone

1. No Business Development Plan – I Mean Sales Plan

Over 60% of agencies do not have a detailed market-ready business development plan. This plan must be objectives driven and reflect the changes in market behaviors – how marketers think and the evolving world of marketing tools  –  that are going on in B2B marketing.

When I say objectives, I mean the business development plan must be a part of a sound business plan.  I tell my agency clients that they must start with a business plan – even if it is one page long. One concise page can be a good thing. Admission: I could never get my agency’s plan on one page.

Back to sales. Here are some lean and mean bullet points:

  • You must know what you are selling.  Just saying digital or social is not enough. Some form of specialization is warranted. Read this on agency positioning.
  • Be able to express why you are unique. I won’t bore you by saying that you need a distinctive brand – you know that. The good news is that most of your competitors are not distinctive. And, most do not have messaging systems that bring the agency positioning alive.
  • Know how what you are selling will (must) resonate with the needs of your target clients. Obvious point: put yourself in their shoes. Today’s marketing director type is nervous. Help them do their job. Ongoing thought leadership rules in this space. It is also very SEO-friendly. Like, um, that’s probably how you got to this page.
  • Plan on how  your agency, its story, work and thinking will get found via both in and outbound strategies (you will need both).
  • Be competitive.
  • Going slow will not win. Here is a great quote from Mario Andretti:

    “If everything seems under control, you’re just not going fast enough.”

2. Taking The Eye Of The Ball

We all know this one.

Our unwavering desire to please our clients means that they most often come first. OK, I get it. But, the fact is that running a healthy profitable agency with positive skilled employees has to come before client service. If you don’t have a well-run agency that is financially secure, the idea of paying attention to client needs will be a doomed effort. Your company comes first because the client hired your wonderfulness in the first place.

In my opinion, the only way that you can get to well-run is to have a very positive cash flow and ROI. You’ll get there two ways. 1. Build a service package (agency management, pricing and costs) that helps to make your P&L sing. 2. Run a very smart 24/7 new business program that gets the right clients (you must clearly define right for your agency) in the door. As you know, older clients will walk out the back door. So keeping your front door top of mind is rather important.

3. You Do Not Have A Business Development Sales Culture

First, a point. We call it business development. But, it is sales. And getting it right inside of your company that lives in one of the most competitive service categories is critical. Just imagine a category where your competition are all expert marketers and have super articulate glib management that usually dresses real well. That’s your sales universe.

Yikes, I’ll repeat the obvious: Business development can be daunting. It is a team sport.

It is essential that everyone at the agency understands that growth is a primary objective and that they play a role in agency sales. They will be asked to help with marketing programs, RFP’s and pitches. They need to be aware of any opportunity that floats by via friends, ex-clients and reading the press. It is all about instilling a culture of sales- consciousness. Much of this will come from agency management’s focus on new business efforts, talking to the agency about what is going on in and outside the agency and by acting as  a positive role model.

4. You Hire A Business Development Director And Cross Your Fingers

One of the first things agencies say to me is that they have not had a positive business development director experience. Having been Saatchi’s business development director, running two internet firms and my own agency that had sales staff, I have a few thoughts on why this happens.

First of all, reread the first 3 bad habits. If you do not have a sales plan, an agency with the will and  time to execute, and an agency that recognizes that growth is critical and is to a certain degree, everyone’s job, virtually any good sales person will fail.

I have a couple of important blog posts on the business development function and how to help make them successful. Here you go:

Is Your Agency Business Development Director Doomed?

As you might expect, the answer is no.

How To Aim Your Agency Business Development Director.

This is the blog post with a sample contract.

That’s it. No, No! That Isn’t It.

Read my best-read blog posts – they are all about advertising agency sales. I’ve designed them to help you win. And, hey, while you are at it, why not call me? You might have nothing to lose except one or two nasty habits.

 

 

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