Marketing Agency Leaders around the world are facing a great deal of uncertainty. Here are some tips on focusing on what matters and taking advantage of new opportunities in a changing world.
1 - Strategy
The current economic environment is unprecedented, with rising energy prices, inflation, and supply shocks. These shocks have created significant uncertainty for agency owners, who must make decisions in a rapidly changing environment.
Buying behavior has also changed dramatically during the COVID-19 pandemic. Digital channels that were previously growing slowly have now exploded in popularity. These changes are significantly impacting agencies, and they will need to adapt quickly to survive and thrive in the new environment. Agencies that can embrace change and adapt to the new reality will be the ones that come out ahead.
Acknowledge that change is the only constant.
The world is different. As an agency owner right now, your job is all about prioritization.
First, you need to know where you are going. We talk about Champagne Moments over the mindless first or next million dollars goals. So that's the first thing.
Then, when you know where you are going, you need a plan. The best plans are made not in a vacuum - you need a specialized coach in the agency space, and you need other agency owners you can bounce ideas off and learn what is working and not working. That plan will include critical success factors that are unique to your agency.
We've thought about these critical success factors:
And the first to consider is your team - having the best people around you and supporting your clients.
The second is marketing. When agency owners tell me they desire more sales, my first question is always to show me your marketing.
Next, technology should be considered the foundation for growth. The focus on technology relates to building new businesses and taking advantage of other shifts today.
Last but not least is our community's movement to net zero, both in your agency and for your clients.
2 - Talent
We've been talking about how people don't want to work, quietly quitting, and how hard it is to find talent. To counter these damaging talent drains, we must look at three areas…
How do we find and attract the right talent? Like business development, the best recruitment is personal referrals. Building and nurturing your network is vital. Showcasing your values so potential recruits can understand your agency is also really important.
The second area that needs to change is the job itself. Hybrid work is here to stay, but how do we make it work effectively? How do we create a new set of cultures and norms? Companies that say, "We're going back to the old way," are missing a big opportunity.
Several things need to be considered when designing hybrid work arrangements.
First, we need to think about the technology that will support it. This includes video conferencing, collaboration tools, and project management software.
Second, we must create a new set of cultures and norms around hybrid work. This means being flexible with work hours, providing team members with the tools they need to succeed, and creating a sense of community even when people are working remotely.
Finally, we need to be open to new ideas and working methods. The old way of doing things will not work in the hybrid world. We need to be willing to experiment and find new ways to be productive and successful.
Companies that embrace hybrid work will be well-positioned to succeed in the future. Conversely, those that resist change will be left behind.
Third, there's much more innovation around apprenticeship: less of the more senior person teaching the younger person how to do things and much more of a two-way training. There's an awareness of the value the next generation can bring to upskill more senior team members in the agency. Finally, people are increasingly exploring self-authorship, which is the process of individuals defining their career paths rather than relying on agencies to tell them what to do. When people take ownership of their careers, they are more likely to be engaged and satisfied in their work. They are also more likely to succeed, as they can tailor their careers to their strengths, interests, and values.
One final thought - consider it's different from the traditional full-time office environment, even if you are a hybrid agency. Think about dispersed talent. Where you used to hire in your town, you now have a global talent supply. Use that wisely regarding their competencies and costs.
3 - Marketing
If you're not growing, you're dying. You have to be marketing today.
Many small agencies have relied on referrals, a lead form on their website, a blog, organic social media, and a newsletter. That's great for small, but most agencies that break the $1m barrier have to do more marketing. Do you have a marketing plan - including your SEO, Pay per click, digital initiatives, media relations, and more?
First, get very close to the buyers. We all know a fantastic business who have surveys. They have client research. They spend a lot of time with the clients. It's essential to understand the client pain points that your agency will address.
Second, as you try to build your agency, be clear on the unique advantage you want to bring to bear in solving those client issues. That's your message. Re-evaluate your messaging today, and see if that needs a refresh.
Third, follow the numbers. An agency owner who says, "Let's just try this for a bit," is not moving their marketing forward. Marketing today is a science. Create metrics, have dashboards in front of you, and make informed choices based on trials and real ROI numbers.
4 - Technology
We are at an exciting technological time - possibly the most pivotal since Microsoft Windows was introduced. Artificial intelligence in our industry is revolutionary. While some agencies were embracing AI before 2023, the launch of ChatGPT in November 2022 was the watershed. But, of course, that was only a few months ago, so if you're not on this train today, don't worry, the train has barely left the station.
Different AI options are and will continue to grow. How we use AI at the agency level will develop.
First is the use of AI - you need to keep your whole agency up to speed. Let us know if you're looking for simple do's and don'ts. And keep learning how best to use these tools. You must ensure you are not opening up risk - so read up on the ethical and legal implications.
The second area is how your agency structure and processes can be updated with AI. Using simple AI, you can automate a great deal and use disbursed lower-cost talent to achieve the same results. That frees up your in-house talent for more creative and higher-margin work. I see this area being monumental for agencies this year.
5 - The net-zero opportunity
Net zero remains a top priority for leaders around the world. They are committed to advancing a clean, sustainable, affordable, resilient, and secure energy system. This is a complex challenge, but it is one that we must solve to address the climate crisis.
Achieving net zero will require a concerted effort from all sectors of society. Governments, businesses, and individuals all have a role to play. Working together can create a clean, sustainable, and prosperous future for all.
First, what can you do for your agency and team to be part of the solution, not the problem? How do you make your agency net zero? This doesn't happen overnight, but it is possible with a strategy in place. Then, how do you measure that? Measure that and be transparent about where you stand today in your marketing.
Second - that measurement is important because your clients will ask for it. Maybe they are today, but they certainly will be in the future. And if you're pitching to any company in the future that is listed on an exchange or has institutional money backing it, they will be asking you, as they need to show that transparency to their investors.
Summary:
The world is changing rapidly, and agency owners need to be able to adapt quickly to succeed.
There are several critical success factors that agency owners should focus on, including:
Strong Strategy - Agencies need to be able to withstand shocks and disruptions. This means having a solid strategy and planning in place, with visibility at the industry level and a strong advisory team.
Rethink talent. The talent market is competitive. As a result, agency owners need to rethink how they attract and retain top talent.
Manic Marketing - plan, measure and keep ROI focused.
Embrace Technology - Embrace change. Agency owners need to be willing to embrace change and innovation. This means being open to new ideas and ways of doing things. Invest in technology - not just the hard costs, but the training cost. Agencies need to invest in new technologies to stay ahead of the competition.
Focus on net zero. Agency owners must take action on climate change - be ahead of that curve. This means reducing emissions themselves and showing that progress to your customers.
By focusing on these critical success factors, agency owners can position their businesses for success this year and in the future.
Do you want to know how we are helping agency owners with these critical success factors? Reach out to us today.