[Originally published March 31st by Rebel Rainmaker]
With the recession in full swing, there is no better time than the present to realign your agency’s focus on winning new business. Although the aforementioned statement may contradict recent press hammering the ill effects of Fannie, Freddie and the Fed, the current economic downturn may actually present the opportunity to reexamine the hand that’s rocking your new business development cradle – and your agency’s livelihood.
During a fiscal decline, companies examine their budgets and lend a critical eye to their current advertising agency relationships. While everyone else is digesting the grave news with uncertainty, relish in the fact that the modern advertising industry is adaptive and transformative. It has outlasted a handful of recessions. With that said, new business opportunities do not recede despite the economic landscape, and the business development arm of your agency should be just as polished, focused and integral as any other department.
Client acquisition isn’t an afterthought. Successful business development is progressive and forward thinking and shouldn’t stem from a reaction to a recession, a dwindling client roster or a reduced budget. And when the average agency relationship lasts two years and 42% of agencies don’t have a formal new business plan, (Gass, 2008) other agencies who view their new business division as part of the agency’s overall brand are pulling your agency’s new business rug out from under.
The perfect combination of timing, expertise, persistence and resources creates new business opportunities. And many agencies cannot achieve this new business blend alone. Instead, a select and savvy few rely on outside new business consultants to secure new accounts with a multi-faceted, full-figured business development approach. These consultants aren’t just rainmakers; they are revolutionaries changing the business development landscape in the agency world.
Originating in the UK and marginally recognized in the US, outsourcing has increasingly become an integral part of the agency business cycle. The nature of the benefits far outweighs the cost, and here are five tangible reasons why your agency should consider outsourcing your business development department:
Knowledge and experience
For less than the cost of training and paying one new business development employee internally, an outsourcing firm can provide the benefits and expertise of multiple dedicated business development professionals, including an account director, account manager and account coordinator. Your agency not only capitalizes on the team approach to outbound activity, but the accumulation of knowledge across multiple team members and disciplines creates a corroborated advantage.
Research plus value added services
Factor in the cost of deep research, subscriptions to business intelligence reports and third party contact lists and data management, and the cost of in-house business development becomes exorbitant. Business development consultancies not only absorb these costs, but a team of researchers independent from your assigned account team is responsible for scouring leads and prospects. The in-house, singular business development approach is dispelled and the advantage of having myriad specialized staff members at your finger tips is invaluable.
Expertise and specialization
A new business consultancy specializes in one aspect of the agency world. With a dedicated team handling your new business efforts, your agency is exposed to a greater wealth of knowledge regarding new business buzz, trends, RFP’s, and accounts in review and relies less on word of mouth or referrals. The team is immersed in another sector of business – winning, not maintaining. While your agency can focus its efforts on maintaining the satisfaction of current clients, the outsourced firm can focus on filling your pipeline with quality new business opportunities.
Immersion
A multitude of outbound activity is not only performed on your agency’s behalf, but the entire account team absorbs your agency’s culture, goals, and bottom line. The time it takes the team to get up to speed with your agency’s brand, capabilities and target markets is minuscule, and the outsourced firm not only knows your agency inside and out, but the account team evolves into a team of virtual employees.
Liability
There are no overhead costs associated with outsourcing business development. Your agency’s HR and accounting departments have one less employee to withhold from, insure or provide retirement and unemployment benefits.
The Bottom Line
Filed under: Business Development, Business Development Funnel, Messaging, Metrics, New Business Best Practices, New Business Strategy, Winning Business , Business Development, New Business Strategy
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