It’s not a stretch to say most agencies would like to be in “growth mode”. If that’s true, then why are so many of them just trying to survive? Why are so many going around in circles, month after month and year after year?
I know the answer to these questions because I was faced by them in the past.
Back when I was running my agency, I lacked a clear sales plan. I didn’t deeply understand who my customers were (through proper use of a customer persona). I didn’t know how to structure a sales funnel, and move prospects from oblivious bystanders to dedicated clients.
Without these things, you’ll struggle to build a profitable business. With them, it becomes much easier to find your ideal clients, improve your bottom line, and get your business moving in the right direction again.
Many agencies fall into the trap of selling their time, rather than the value they provide. By this, I mean they price by the hour, the day or even give a time-based flat fee.
The issue with this is that it makes it easy for prospective clients to compare your price to competitors (even when their work isn’t quite as good as yours). This in turn leads to your work being undervalued. You either offer them a discount or lose the work - and most agencies don’t turn down work.
One of the most important shifts you need to make is selling your customers on the value they get from your work. It’s a matter of talking about outcomes, not outputs - what benefits will they get from the work you complete?
Think of it this way: If you could hire a coach or consultant to increase your revenues by 25% and profitability by 40% in the next year, how much would that be worth to you?
Alternatively... how much would you pay a coach or consultant for 6 days of their time?
The end result is the same in both scenarios (dramatically increased profitability and revenues), but the way the question is framed almost certainly impacted the value you assigned to the consultant in both cases.
Understanding how to sell based on value (not time) is vital for your business. It will allow you to do more profitable work, deliver better end products to your clients, and increase retention rates.
If you’re ready to win more profitable business than ever before, why not get in touch to find out more?
You need to be sure that you understand the transformation and outcomes the client is looking for and be sure to map your work to these and communicate and report back occordingly. Remember, clients are not buying your time, they are buying a transformation and a solution to their 'pain'.
I suggest you increase your prices every year. Your costs go up and hopefully you continue to invest in your services and systems, so it makes sense for an annual increase. If you want some help on how to increase your prices and how to communicate this to your clients then please get in touch. I have helped many clients do this without losing a customer!
Firstly, understand who your ideal client is (create you customer avatars). Then you can work out the best ways to engage with them. Where do they hang out? What do they read? Create a sales and marketing plan and ensure you have a solid sales funnel of prospects at different stages. You need to ensure you allocate enough time to to this so you avoid the dreaded feast or famine cycle.
I have 30+ years of commercial business experience. After beginning my career by working in various blue chip companies, I took the leap In 1991 to start my own marketing, PR and design agency. Over the next 11 years, I grew the business into an award-winning agency with 25 staff and revenues in excess of £1.5m. In 2002, I sold the business and then retrained to become a coach and mentor. Since forming Da Costa Coaching in 2007, I have helped over 300 agencies to grow in a sustainble, profitable and enjoyable way.
After a number of successful years, we wanted move into the next phase of our growth by redefine our offering. Rob has been instrumental in helping us understand where we are now and where we want to be, and the tools and processes that we need to get there. Not only do we now have an exciting next chapter, but I have personally learnt so much from working with Rob during this process. He now really feels like part of the Ambleglow family.
Director, Ink & Dots
I went to Rob for coaching to help me decide which direction to take my agency in. Rob applied a structured approach that enabled me to determine the best areas to focus on and the types of clients I should pursue. His advice was practical and easy to implement and he was a pleasure to work with. He was also an excellent sounding board when I had difficult decisions to make. I particularly valued the fact that he had previous experience in my sector. I have recommended Rob to friends and will continue to do so.
MD, Agility Marketing
We’ve worked with Rob for many years. Originally when my agency was very small - to help create (and keep on track) a business plan. Now he works with some of my team as well as the Directors, Rob challenges our thinking and provides different solutions to put into the mix. We’d happily recommend him.