Build A Better Box

Ask yourself this: are you a one-night stand?  Are you the one in your group of friends who always has a different date every weekend, never seeing the same person twice?  Does your date book read like the flight schedule at LAX?  Of course, this is a business blog – not an online dating advice column – so I’m not just talking about you; I’m talking about your business and your clients.  But since businesses are driven by people, this does apply to those running them and their client/customer relationship efforts.

Many of our clients and partners are marketing and advertising agencies, and they live and die by the strength and value of their accounts.  Some agencies keep the same anchor accounts for many years, rarely taking on new work.  And some shops seem to go through new business – rapidly turning it into old business – faster than cars in a Burger King drive-thru.  Two such polar-opposite clients come to mind.  One – years ago – was with us in an editing session, and their lead research person was present.  I recall him slamming down the phone in frustration, having just gotten bad news from an AE who announced the loss of a bid for a new account.  The research person groaned, “Sometimes it seems like we can’t pitch a new account to save our lives!”  This highly respected agency, however, did have a reputation for excellent client services, and they retained many ages-old accounts.  But while great at long-term service, they were not so skilled at framing their case to new prospects.  Once they landed a client, however, they had them for a long time.  They grew with each other, and knew each other’s needs, personalities, and intimate details.  There was vested value in an account, and relationships were allowed to deepen and mature.  But this agency was also driven primarily from a creative focus, not a sales-oriented focus, which explains the foundation on which accounts were typically acquired and eventually serviced.

To the other extreme is Agency #2.  This shop is one of the best I’ve seen at landing new work, as they acquire new pieces of business with much more frequency than is common.  But as some insiders have lamented over the years, many accounts are short-lived, with not as much focus and attention given to relationship building and servicing.  Like sand in an hourglass, accounts can slip away more quickly for them.  This is of less apparent concern for them than it is for Agency #1, since they merely need to go sell a new replacement account – something they are (fortunately) pretty good at.  Agency #1, on the other hand, was not so good at acquisition, and so needed to rely more heavily on their strengths in the management side.

It should be noted that neither of these agencies is #1 in their market.  In fact, some shops smaller than either of them – with fewer staff , lower overhead, and less billing – are possibly more efficient machines because they are able to better balance both sides of the equation: service and sales.  Although both of my example agencies each have higher gross billings than average, they may not be more profitable pound for pound than some of the wiser, smaller shops, and they could probably learn a thing or two from “the little guys” – as well as from each other.  

Ironically for each of my examples, the actual campaign work itself likely has little to do with their shortcomings.  These are both highly creative, multi-award winning agencies with top-notch development staff.  But in the end, this is not what necessarily attracts – or retains – accounts.  While both shops are productive and well intentioned, it simply comes down to a matter of selling and servicing, and in which areas they are weak or strong.  And while portfolios and pitches might help sell an account, they don’t keep an account.  As it stands, Agency #2 – the sales pros – still remains behind Agency #1 – the service masters.  How would you rather spend your time?  Constantly restocking the shelves with replacement business, or nurturing your long-lasting, equitable accounts?  This all depends on your business model.

So, ask yourself again: are you concentrating enough on balancing selling and servicing?  Will your next client also be your next one-night stand… or are we talking rings and vows?  (You may now kiss the client.)