New Business Hawk

Chemistry Wins New Business

Chemistry is that funny stuff in the space between people.

It’s not about you or me but what’s between us. That space is called Chemistry and it’s a driving force in new business. Chemistry is rarely talked about. Firms don’t like to say “we just didn’t like you” when explaining to an agency why they weren’t hired. Strategic direction, better fit, outstanding idea are all better reasons to go with another firm. Perhaps it would help if we called it “Likeability” as in “I like one firm more than another.” But Chemistry is more than that. Good Chemistry has more to do with meeting expectations, as in “I think we could work with these people best.”

Losing the Chemistry Battle

Here’s why it’s so important: We tend to like people better who best meet our expectations. Who seem like us. We understand them easier. We don’t get surprised. In short, we want to work with them. Hence we hire them.

In many searches, the search consultants or the key client-side decisions makers will realize that “any of these agencies can do the job.” The search process then becomes about which one firm do “we want to work with.” That’s Chemistry.

Overselling Is a Fatal New Business Disease

Stuart Sanders Chairman

I was so proud of myself. I had been following up on a good prospect, a large regional hospital in a small city near the agency where I worked. The Director of Communications agreed to see me because of our agency’s hospital expertise.

The Importance of Personality Profiling

Over the phone I did my usual personality profiling to understand her profile so I could establish good chemistry quickly. She sounded warm, friendly and definitely people oriented. She was low-assertive, meaning she was not pushy, very agreeable, and let me lead our phone calls. Those observations quickly established her as a Logo™ personality. I therefore cooled my sales jets, took a low-aggressive approach and worked over several weeks to warm her up. It’s all out of our Chemistry Wins New Business training manual.

I asked for permission to see her when it felt right. Besides, I explained, “I was passing close by,” so she agreed to see me. As I stood in front of her office located in the bowels of the hospital, I mentally checked over the Do’s and Don’ts for Logos™. I remembered don’t push. Don’t oversell. Do build chemistry by treating her first as a friend. Do establish common ground. That approach means I don’t take in a presentation or even samples because that’s too “salesy” for most Logos™.

The Importance of a Solid First-Visit Strategy

The first visit went like clockwork. It’s a tried and try approach built around Agency Baseball and something that I practiced at the agency, working to get my words down, remembering to talk it over easy, and not pushing. Now in her office it all came together as I spent 20-minutes discussing personal issues with her, including family, friends, industry contacts we both knew, college backgrounds and all type of stuff that drive Headlines™, those hard-charging profiles, crazy. It wasn’t difficult to hit common ground because her office was loaded with discussion tips in typical Logo™ fashion. And the approach works because Logos™ want to establish a personal relationship first before moving into work.

About the time I was going to bring up business, she suggested it. I moved quickly to outline our capabilities using word pictures. It was our hospital competency story, and it takes about three-minutes and includes the five things we do well, all stuff we teach in our Spark Training. It’s light and easy.

The Importance of Discovery

Then I asked moved to Discovery, a process where the agency asks questions, and acts like a medical doctor with good bed-side manners, meaning concerned, probing, checking off needs and looking for symptoms or pain where we can be of help. But not selling, just questioning like good docs do.

She opened up and laid out her marketing problems and opportunities in a very professional and orderly fashioned. I asked the Process questions and found out she was moving to fire her current agency, a shop that was having well-known leadership issues. My heart took a jump but I didn’t try the old “hire us” trial offer. I remembered my bed-side manner and her Logo™ profile.

The Right Way to Exit

The meeting ended abruptly, and too early for me, with a call from her boss that she had to take, but I stood and said my good-byes, told her I would follow up, and departed. I understood that I had accomplished just about all I could on a first visit with a Logo™ profile. Trying to close the account at that time would not have worked. And I knew rushing to ask for the order as so many “experts” suggest would have lost all I had gained.

Winning With a Conference Report

I followed up with a detailed conference report based on what she told me. And true to the process we teach in Torch Training, I stuck to the facts with no selling. And I sent it to her by overnight delivery as we suggest, never on email. She called back very impressed at how well I had listened, and said she didn’t want to go through an agency review and would like to shift her account to us. I asked her how she wanted to proceed, staying in her profile, and she suggested I send up our agency contract so her in-house attorneys could review it. Never had I won a piece of business any easier.

The Agency New Business Meeting

That Tuesday, when we had the agency new business committee meeting, which is usually the most hated meeting in the agency and a big waste of time because the account staff goes around the table and tells lies about stuff that should have been done and calls they should have made, but didn’t. All well and good until my turn, and I opened my mouth and bragged about my new “win.”

The agency president and chief creative officer, Headline™ to the core, demanded to know what this Director of Communications felt about our hospital creative work. I explained that she had not really seen it because I had not taken the agency hospital presentation to her because, in my opinion, it wasn’t needed. He was incensed and announced to everyone that he would go pick up the contract with me, but only after he marched my “new account” through our creative work. He would make very sure she knew what type of agency she was hiring.

DOA

You know the rest. We never got the account. The follow-up meeting began with our contract from her attorneys sitting there on her desk, breathing “pick me up.” Our president rushed to deliver his heavy-selling “we do it our way” creative review despite my suggestions on how to do it that I had given to him before we left the agency. His pushy overselling killed the win.

The sad thing is he felt he did a good job. I didn’t have the strength on the ride back to the agency, while listening to him tell me how well we had done, to speak the truth. We had just lost the easiest account we had ever won.

Five Important Take-Aways

1. Personality profiling really improves your batting averages.
2. Having a solid first visit approach always works.
3. A conference report follow-up is often your best closing device because among other things it proves you listened to the prospect.
4. Over-selling hurts your chances despite all the “ask for the order” junk floating around.
5. Never brag at agency new business meetings.

Free Offer

If your agency wants to learn more details on some of these techniques discussed here, call Sanders Consulting Group (800/899-1538) for a free, no-obligation discussion on new business, tips on your process, and perhaps some advice.

A New Business Must Call: Winning The Big Pitch

Over the years we’ve worked with thousands of ad agencies, design firms, creative marketing companies of shape and sizes, and they all share one thing in common – the need to win new business in a competitive review.

Winning the big pitch is something we love. And it just so happens we’re damn good. We usually get called in when it’s what we call a defining moment – a win here will re-define who your firm is because of the type of account and its importance to your firm’s future. Some people call it the pitch you have to win. We want to help you win that pitch.

There are typically 10 ways to know when you should call for help on a pitch:

1. It’s a defining moment, a chance to redefine who the agency is by winning a piece of business. It’s an opportunity to win you can’t miss. A win will redefine you for years to come.
2. Call us when you lost the last pitch. Let’s wipe the slate clean together, get the stench of the last loss out of the agency and replace it with a new win. We can help you do that.
3. Call us when you need to get into a pitch. You’re on the outside looking in. We can often help you get into a new business presentation if you call us.
4. Call us if you are a new agency or new to the category and need help in winning a pitch in a market or category you are weak in.
5. Call us when the deck is stacked against you. You are David going up against several goliaths. Most of our wins are in this category. Davids call us and we love to help them beat the bigger foes they are going up against. We really believe that the bigger they are the harder they fall. And we like knocking the big boys down.
6. You have to win. It’s a matter of survival. That’s not a nice time to have to pitch but in today’s economy if’s often winning or closing the doors. Call us if you are here.
7. You are still using the same approaches you used last time. You sense they are outdated, old, full of Powerpoint slides that are deadly. No drama. No visual impact. Call us if this is you.
8. Competition is especially strong. You are going up against a firm that wins most of the time. Call us if you have lost to a major competitor once or twice before. We need to change things to win.
9. You know you need to do something different. You can feel it in your bones. Listen to that quiet voice and call us for new techniques, new strategies, new ways to pitch and win.
10. You need to learn how to win. You know you need to get better at pitching so pitching for new business becomes a core skill set of your firm. If you don’t have that core skill set, call us.

Here’s a quick reminder. Call us early so we can impact your RFP, or enhance your chances of winning because the prospect likes your firm better, what we call chemistry. If we come in early, helping you win gets a lot easier.

Below you'll find a couple of videos that outline our process for winning.  The presentation is divided into five chapters to make it easy.

Chapter 1: A quick review of the advantages of winning and the advantages of make a superior effort to win.

Chapter 2: 10 ways to know you might need help on winning this pitch. Tips when you should call for help - I covered some of those above.

Chapter 3: Our approach, how we help our clients win the pitch, and here you’ll see we do much more than presentation coaching or pitch training. Winning a new business pitch is much bigger than that.

Chapter 4: Our compensation model which is very reasonable and puts our skin in the game.

Chapter 5: A quick review of the risk vs. the rewards of bringing in us or someone else in to help you win.

And Part 2:

Agency Baseball: The Secret to Winning New Business

Most agencies focus on the pitch, the show, the capabilities presentation. This is putting the spotlight on the wrong place. By then, most of the really important decisions have probably been made. The really good agencies win early: the pitch merely confirms a decision.

There are only four obstacles to getting the business. If you do not get an account, it is because your agency failed to overcome one of these four obstacles.

The four obstacles are arranged like bases on a baseball diamond.

 

First Base is the most important base to reach. The obstacle here is “No Trust.” No trust means I do not know you, therefore I do not trust you. “No Trust” means I have not heard of you, therefore I do not trust you. “No Trust” means I do not understand your experience so I am reluctant to discuss my business with you. No trust is a serious obstacle and must be overcome before any type of agency/client relationship can be built. ”No Trust” blocks you from Second Base.

Second Base is another obstacle called “No Need.” No need means I may trust you but I do not have a need for your specific service. “No Need” means you may be a fine agency but I do not happen to need an agency now. “No Need” means I am sure you are successful but I am happy with my current relationship.

Third Base is made up of “No Help” which means “While I trust you and know you, and have a need for an agency such as yours, your specific recommendations are not going to help my situation.” “No Help” is a failure in recommending the proper solution to the prospect. “No Help” means “It is not worth the effort for me to accept your specific recommendation. I will lose more than I will gain.”

Reaching Home plate means overcoming the last obstacle which is “No Hurry.” No Hurry means “I know you and trust you, I do have a need for an agency such as yours, and your specific recommendation would be a help to me, but I am not in a hurry to appoint you.” “No Hurry” means the cost of putting your recommendations into effect could be higher than the prospect is willing pay. “No Hurry” is usually perceived by the prospect as low benefit compared to high risk.

For an agency to play Agency Baseball, it must first understand how the field is set up and how important it is to establish Trust firmly before trying to do Discovery (going for Second).

A few agencies understand that Agency Baseball is different then regular baseball in that you can steal Home from Second Base. This is called a Fast Close. It is a powerful tool that wins the account BEFORE going into a formal review.

Eighty percent of an agency’s problem in getting new business revolves around First Base trust problems. This is the most important base and where most agencies stumble.

Photo Credit: The Wisconsin Historical Museum

HawkTails: Account In Review or Win The Pitch

The message was left with a hint of desperation in the voice, "Please call ASAP!" Checking the time it was left late the night before. So we called...

It seems the agency, a healthy, growing midsized firm, with good creative chops, had made it into the final round of a review.  A review the agency really wanted to win. That if they won it would change the course of the agency, putting them on the map, fame, recognition, hope.

The problem was they were the last agency in. And they were going against some of the best agency brands in the business. Brands we all know. And who hate to lose.

And our little agency was already in last place.

Within the agency some of the "boo birds" were starting to chirp. They had no chance of winning. They should bow out. The competition was too tough.

One of the senior staff remembered what we said at a conference she had attended; when you arrive at a critical moment for your agency, a crossroad, give us a call. You never know...

She made the call.

The Situation: Last place going in. Large account. Never worked with an independent firm. Procurement running the review. Lots of process. Competition was all multinational or national name brands and any one of them a safe bet to win.

We thought our client could win.

The call: Win the chemistry battle and out process procurement. We spent several days working with them on the structure, process, staffing, storyline and flow of the pitch. Every detail was worked out, from the brand strategy to the type of glasses used during the break.

The pitch: They went in with all the little details better organized, thought out, and structured. Little technology, more interpersonal relating. The meeting had a good flow, logic trail, and led to a strong recommendation. At the end of the first hour the team had refreshments brought in with silver and linens. The second hour was used to fill in the details, provide some additional planning discussion and answered any additional questions. Again, they ended on a planned high note - going out strong. 

The win: With procurement calling the shots after the final agency presented the score sheets were tabulated. A tie. The agency and one of the big shots were tied. So procurement put it up to a vote with the marketing people – who would they rather work with?

Our agency won.

Number one reason given? The refreshments. Specifically, the linens.

If it had been any other client we would have not brought the linen in, but having been through this type of pitch many times we knew how to profile this brand. We knew they would love the linens.

Give us a call.

800.899.1538

Fishing in Troubled Waters - New Business in Tough Times

A recent B-to-B Magazine headline shouted, “Desperate ad agencies scramble for business.” There is no disputing that the current climate is the most challenging our industry has experienced in memory.

The traditional advertising agency model is under attack from all sides. From the strategic side agencies are being pushed out with the increasing impact of consultants; search, procurement, brand, marketing, and of course, the big fish, management consultants. On the tactical side agencies have to compete with all types; design, internet, database management, media buying, promotion, direct, special events, sports marketing firms, corporate identity houses, two guys and a Mac, and more. This is troubled water.

A recent poll among advertisers indicates the current tenure for a marketing manager is only 9-18 months. These new Marcom Managers are younger, have less experience in advertising, are more focused on tactical issues, and recognize that they are only there for the short term. At the same time they have a wider span of control over marketing and budgets, and they want their own suppliers – people who think and look like them. Not surprisingly they don’t take advice very well from traditional agency staff that often comes across as patronizing. More troubled water.

Client turnover is among the more serious challenges within our industry. Some recent studies show that for smaller accounts the churn, or client turnover, can be as fast as every two years, while larger accounts have gone from seven years to three. Clients, these new Marcom Managers, are growing more and more impatient and are quick to question the effectiveness of their current agency. The growing percentage of project-based work has made it easier to change – click to what’s next. Yet more troubled water.

Design studios and other low-cost providers have seen revenues increase as their agency brethren have suffered. These creative firms are organized and operate tactically. They are taking business away from traditional agencies on account of price, speed and timely delivery. Many other specialty shops who often work faster, are more focused on results, and offer tangible benefits to clients are also seeing an upswing in new business. Clients are questioning the value of all the layers at the agency; account service, traffic, and all the administration. Further troubled water.

There is a renewed focus on new business, but most agencies have no system for sustained business development and few staff skilled in new business.  What was done 3 years ago no longer works. The troubled water is changing everything. You have probably been frustrated by first-hand experience with all of these changes; but opportunities for new business are abundant for advertising agencies that are prepared.

We believe there is no better time to do new business than times like these; when clients are changing how they spend, when your competition is worrying about staying in business, when companies are changing agencies at an unprecedented rate, and when prospects want to make decisions that enable them to solve immediate challenges. Doing new business now is like fishing in troubled water. Most people don’t even go out – but that’s also when the pros know fishing is best. While others stay home, the smart ones go fishing.

What steps should you take in times like these? Here are six strategies we recommend.

First, make sure your firm is properly branded. Check to see if you are caught up in alphabet soup with a brand that doesn’t say anything. Clients who are looking for a new agency don’t want a “we-are-whatever-you-need” advertising firm. In fact, that turns them off and harms trust. At a recent new business conference hosted by the AAAA, every client and search consultant said “stand for something.” You have to know who you are and why you should be considered. Otherwise, you risk fading into the fog of marketing services lingo. It is better to stand for something and not be considered for one account then to stand for nothing and not be considered for any accounts.

Second, focus on generating leads. That means increasing the number of opportunities to go visit good prospects. Too many agencies only focus on winning pitches, not working to get into more pitches. Beware of the “we’ll win the next pitch” red herring. This is where an agency is busy pitching but not focused on creating awareness and relationships. Unless you are a recognized agency brand (and there are only about 10 in the US), counting on referrals and word of mouth is not a new business program. Many agencies have attempted to flip a new business switch – “we need some new business NOW! Let’s form a committee!” Few are finding success.

Third, sell smarter. Focus on the overt benefits you offer. Make it clear what you do why and how it gets results. Successful agencies do this face-to-face, not by clicking PowerPoint slides at a prospect with lots of case histories and marketing babble. Stop doing capability presentations! Instead show them how you work, specifically with their brand, and how you will impact their business. This means that you have to work hard and listen to understand their problem. This sounds simple, yet it is one of the most common problems in all client/agency relationships.

Fourth, be easy to do business with. Don’t try to sell what clients don’t want to buy. Give your opinion, offer suggestions, but be sure to give them what they are asking for. If they want the logo larger, make it larger and move on. Forget about account planning and stop trying to get clients to pay for it. If you are in a tactical position, play the tactical game better and build trust. Only then can you move up the marketing ladder and start recommending more strategic advice.

Fifth, think about growing the old fashioned way – buy growth. A cross-town merger with another firm in your market can create a wealth of opportunities. There are some good opportunities in every market. You can gain efficiencies and add new services and resources, and create more awareness for your brand.

Finally, go after the consultants and the strategic high ground by offering consulting services of your own. This requires a separate brand that is not linked to advertising or marketing. Too many agencies forget that if you’re an agency, and try to add consulting to your brand, you are still only an advertising agency –Where are my ads! However, if you are a consulting firm, then you can work at the strategic “C” level, and open up a sizable new revenue stream. This provides more opportunities for the agency side to follow once the consulting assignment is completed.

Search consultants are saying new business is slow. They’re wrong. Their business is slow. New business is heating up. The competitive landscape for agencies has been forever changed. As the economy recovers and picks up speed, you will need to adapt to win today and change to succeed in the future.

As you evaluate opportunities and challenges at your agency, never hesitate to give us a call - 800.899.1538

Image Credit: http://www.1st-art-gallery.com/Andreas-Achenbach/A-Fishing-Boat-Caught-In-A-Squall-Off-A-Jetty.html 

5 Things I Hate About Latrine Duty, er... New Business!

Having started my career in the military, I’ve seen my share of crap. Don’t take me wrong, I loved my time serving! After all I spent 9 years traveling all over the world with some of the best and the brightest. That said, there are some aspects of serving that really grate one’s nerves – like having to clean out the latrines.

Working in new business is much the same. You get to work with some of the best and brightest, be highly creative, experience fun times, and relish the thrill of victory. But there are some aspects that remind me of cleaning latrines.  

Here are the highlights of the things I hate about new business:

1. Letting Chaos Drive the Process (The Guy Everyone in the Platoon Hates)

This is not unique to new business, and we have all interacted with someone who never responds to requests for input into a planning document or who fails to provide clear direction early in the process. This same person tends to show up for meetings 15 minutes late, pontificates endlessly rather than attempting to understand the situation or share critical information. And then assigns responsibilities and actions not related to the outcome. The end result is often that last-minute changes are made in the wee hours of the morning of the presentation. The counter-argument is “we need to be more spontaneous” or “you just need to be more flexible” or my personal favorite is “I work better off-the-cuff.” What a crock.

2. Using Overly Complex Marketing Jargon (Or Establish a SOP to SITREP Clearly)

Marketing buzz-speak is often deployed as a defense mechanism. Box a marketing person into a corner, whether he is a brand manager or the most junior account coordinator, and rather than admit they were wrong or have no idea what you’re talking about, they’ll start spouting off impressive-sounding marketing terms, abbreviations, and jargon-laced speeches – “We need to highlight the brand USP to maximize CTR by implementing a highly-integrated cross platform SMM to generate strong ROI.” I know some former military folks who can’t communicate with civilians due to the lack of acronym commonality. That’s why it’s important to communicate clearly. The most respected people in marketing I’ve worked with have an ability to articulate a complex situation or a difficult process or a hard-to-grasp marketing problem in simple, understandable terms. Not the other way around.

3. Not Developing Presenters (Providing More than Just a Toothbrush for Latrine Duty)

Marketing firms tend to promote people with good account skills or outstanding creative credentials, and then expect them to deliver powerful presentations. Often the very skills needed to be great in client service or creative makes them terrible at delivering presentations. Yes, I’ve heard all the excuses about how times are tight and there are no staff-development budgets, but you really cannot afford to ignore building great presenters in your firm. The best presenters are coached and groomed – they’re not just born that way. And if someone just doesn’t have that ability, then don’t bring them! Would you want someone covering your back who hasn’t had adequate training? Watching a well-crafted presentation delivered poorly just kills me.

4. Focusing on the Wrong Things (Should Leadership be THAT Concerned about the Cleanliness of the Latrines?)

When heading into a new business planning session or pitch there are certain areas where we should be spending most of our time. That means the overall goal, strategy, or plan. One disturbing trend I’ve noticed is agency leaders are focused on small stuff, like which word on which slide is better. Getting a handle on new business requires among other things, a particularly strong attention to detail. However, few leaders are able to coordinate the dozens, if not hundreds, of individual details associated with new business. Although keeping track of details is a valuable skill for leaders, I think it's easy for leaders to lose sight of the big picture. Regardless of how many small details need to be handled, it's important to step back every once in a while to see things from a broader perspective. That’s why in the military you have a commander who is in charge of the overall mission and subordinates to track and execute the details.

5. Letting Your Firm Get Lazy and Fat (Why Physical Training is a Way of Life in the Military)

The worst thing about new business is how so many firms let things slide until there is a crisis, and then everyone goes nuts. The day-in-day-out work eventually fills everyone’s time, and new business keeps getting pushed to the back burner. Weeks/months/years go by with little-to-no-effort being made in new business until one day a large client decides to head across town to a rival firm. Then all hell breaks lose as the agency goes nuts trying to find new business. Suddenly outbound phone calls get made. Old prospects get hounded. And new outreach programs are thrown together. Why? As I’ve stated many times, the most important client in the firm is the firm. Look over the past year, and decide if your own marketing efforts would be representive of your best you would do for any old client. Probably not. Working and exercising your new business skills day in and day out should become part of life at your firm. They don't call new business the heart beat of an agency for nothing. By continuing to ignore your weaknesses or problems they will never get resolved.