- Who We Are
- Success Stories
- Thought Leadership
Analytics/Data | 5 MIN READ
It happens to every agency; you get the opportunity to pitch to your dream client, your whole team works around the clock to highlight your agency’s ideas, you bring your “A Game” to the presentation…and then the gut-punch; you didn’t win the business. According to a study by Cubeyou, the average U.S. agency closes just 43% of their new business pitches, while top performers close an average of 85%. The study found the key factors separating low performers from the top closers were a lack of differentiation from competitors and an inability to demonstrate an understanding of the client’s problems, and target audience. In addition, changing trends like lower client tenure, more competition, and higher client expectations, mean agencies are under pressure to offer unique insights to their clients.
To stand out in a fiercely competitive market, savvy agencies are setting themselves apart by leveraging data to bring in new business and strengthen existing client relationships. Here are 6 ways agencies can use data to highlight compelling insights during their pitch process to increase close rates, deliver greater value to existing clients, and employ data analytics to boost the agency’s own prospecting efforts and increase new business opportunities.
The first step towards becoming a more data-savvy agency is to ensure you have the tools and resources to fuel data-driven marketing. Through strategic partnerships with data providers, like Infogroup, agencies can boost their data capabilities using third-party data sources. By vetting and establishing a relationship with a data vendor that provides high-quality data (that is verified and updated in real-time), the agency can increase their ability to provide deeper insights to prospective and existing clients, as well as the agency itself.
Example - Provide industry and competitive insights:
Agencies can use third-party data to provide eye-opening industry and competitive insights to their prospective clients. For example, every brand is interested in knowing what their competitors are up to (and how they measure up). Using data on competitor activities, such as Infogroup/Yes Marketing competitive intelligence platform – Market Intelligence – an agency could track and analyze their prospective clients’ competitors’ marketing activities, providing insights like email engagement, deliverability, social subscriber growth, top performing campaigns, offers, and deployment trends. These competitive metrics could help inform campaign strategy recommendations from the agency during the pitch process.
In 1984, the average client-agency relationship was 7.2 years; today, it is estimated to be less than three years.3 In addition, research from Bain & Company shows that increasing customer retention rates by 5% increases profits by 25% to 95%.4 These studies highlight both the changing nature of the agency-client relationship and also the importance of client retention. As brands strive to become more data-driven, an agency that provides advanced insights to boost acquisition, retention and loyalty, as well as help clients understand which campaigns and channels are driving the best results, will provide the type of value that keeps clients around for longer.
Example - Audience modeling:
By enhancing their client’s existing customer files, campaigns, and analytics with external third-party data, an agency can help their clients develop advanced models such as personas to help the brand develop messaging that connects with their customers, improve response rates, and increases purchases.
For example, Sagefrog Marketing helped their existing client, Core Solutions, an electronic health record (EHR) solution provider seize on a new opportunity through the development of personas. When the federal government mandated that all healthcare organizations move from paper records to EMRs, the market was saturated with content from industry players vying for attention, making it hard for the solution provider to gain traction. Sagefrog analyzed data to create personas representing key buyer segments and their needs. The brand then helped Core Solutions create persona-driven content that would speak to each segment’s unique interests, questions, and goals. The effort lead to a 164% increase in web visitors, a 945% email open rate increase, a 728% increase in inbound contacts, and a 600% increase in qualified leads compared to previous year.5
An agency that can demonstrate their ability to generate meaningful insights that achieve real results, is setting themselves up to win. Whether pitching to new clients, landing a new project with an existing client, responding to an RFP, or finding new prospects, data is creating new opportunities for agencies to close more deals and keep clients longer.