Building an agency one request for proposal (RFP) at a time is a painful and potentially humiliating way to grow a business. And while winning without pitching means not playing the RFP game, there’s more subtlety to the approach than simply saying no and feeling good about yourself all the way to bankruptcy. In this long-overdue issue of the Win Without Pitching Newsletter I address the specific steps to take in dealing with requests for proposals.

The Four Priorities of Securing New Business

Before I address the specifics of RFP responses, let’s recap the four priorities of how you want to go about getting new business.

1. Win Without Pitching

Through a proactive selling strategy, you ultimately strive to secure new engagements before they get to competitive situations, before you are asked to part with your thinking without appropriate compensation.

2. Derail the Pitch

When you cannot win without pitching and the prospect lets you know that he is talking to other firms and has a defined selection process in place, your objective is to derail the pitch: to get the prospect to put aside his process and take a series of small steps with you.

3. Get the Inside Track

When you cannot derail the pitch, your objective is to gain the inside track – to gain concessions in the selection process that would see your firm being treated differently than the others. Someone almost always has the inside track. If it’s not your firm, it’s another and the odds are against you.

4. Pitch or Walk

You will secure new business through one of the means above only if the prospect recognizes and values your expertise. If he does not, then it’s decision time. Do you preserve your integrity and future business opportunities by walking away, or do you get out the dogs, ponies and dancing girls and play the pitch game, against the long odds? If you do decide to walk (as I recommend) it’s important that you do so properly in order to preserve future opportunities.

Step One: Why Us?

When an RFP comes in for work that is well suited to your expertise, your first response is to pick up the phone and ask, why us? In doing so you are endeavoring to determine if the prospect recognizes and values your expertise. What you want to hear is, “You come highly recommended by ____”, or “We love the work you did for ______.” What you do not want to hear is, “We Googled ‘ad agency’” or “We sent this RFP to every firm we know.” Be selective and strive to be seen to be selective.

Step Two: Say No

After digging deep to determine whether or not the prospect recognizes and values your expertise you then deliver the first objection: “I need to let you know that we don’t typically respond to RFPs.” Any objection you raise can always be removed by you at a later date. Here you are trying to gauge the flexibility in process the prospect might afford you; their willingness to let you derail the pitch or offer you the inside track. Continue with, “But, before I say no, let me you ask you a few questions.” These would be your questions around explicit need, and the fit between the prospect’s need and your expertise. What are they looking for in an agency? Do they see that expertise in your firm? Poor fits might be put off by this reversal of the qualification process (you trying to determine if they qualify), but good fits and good clients will appreciate your selectivity.

Step Three: Substitute Appropriate Next Steps

Here’s where you ignore what has been asked of you in writing and suggest a next step that is in line with what is almost always your stated objective: to determine if there is a fit between the prospect’s need and your expertise suitable enough to take a next step together.

“Why don’t we come and see you and your team” (if they’re local – use the web if they are not) “and in 45 minutes or so we can determine if there’s a suitable enough fit to pursue this.” If they’re sticking to their process and denying you your suggested next step, then you will not be able to derail and it’s unlikely you will gain the inside track. Then it’s time to walk – step seven below. Note that the appropriate next step is not always a meeting. It might be a needs assessment, or more information in other forms.

Step Four: Use Case Studies

If you do get the meeting you begin with stating your objective: to determine if there is a fit between the prospect’s need and your expertise suitable enough to take a next step together. Now walk through your case studies of how you’ve helped companies like theirs solve challenges like their own. I have written extensively on the crafting of these process-framed case studies that demonstrate a defined way of working and allow you to stay on the right side of the line that separates talking about how you would solve the prospect’s problem from actually solving their problem. Use them here.

Step Five: Suggest Another Way

After reviewing your cases studies that should prove that you actually use the process you talk about on your website and in your brochure, you then check to see if the prospect still sees a fit. Can they see themselves benefiting from the consistent outcomes your demonstrated methodology implies? If so, suggest a phased engagement as an alternative next step.

Instead of committing the entire budget to your firm at this time, a phased engagement (usually a diagnostic in some form that let’s you get to the heart of the opportunity and prescribe a strategy, plan and budget). The phased engagement allows the prospect to take a small first step with you to try on the fit. Add in an opt-out clause (“At the end of the first phase, if you think you’ve made a mistake in engaging us we can part company and you can go back to your RFP”) and a money-back guarantee, and your proposition is a compelling one. When yours is the right firm for the job, this approach is a viable alternative to the client’s selection process in which a number of firms are asked to take on risk instead of just one.

If the prospect does not see the value in your offer then it’s time to walk. You’re not likely to win the business anyway. If they like what they see but are sticking to the process and want your written proposal, now’s the time to reassert that you are not in the proposal writing business. The relevant, detailed case study that you’ve just shown them, is your proposal. “We propose to do this (case study) for you.” Remember, the proposal is the words that come out of your mouth. The document is the contract that is produced only once the proposal is agreed upon in principle.

Step Six: Seek Concessions

If the prospect is demonstrating that they recognize and value your expertise, that they really think yours is the right firm for the job, but for reasons of policy or politics they need to go through the RFP process, then it’s time to see if they will walk their talk and show you the inside track by allowing you concessions to the RFP process. It’s negotiating time. Concessions can be made on costs (will they pay your travel costs or pay you fairly for work they’re asking of you?), on what you will submit as an RFP response (case studies versus free thinking) or a host of other areas. If the prospect is willing to treat you differently then it may make sense to proceed on the newly negotiated terms.

Step Seven: Walk… For Now

No concessions, no inside track, means it’s time to walk, but with a polite professionalism that will preserve any future opportunities. “It doesn’t seem like there’s a fit here. Why don’t you go ahead with your RFP process and if you don’t find what you’re looking for, feel free to give us a call. We’d be happy to have another conversation with you at that point.”

People want what they cannot have. Walk away in this manner and see if the phone rings after the usually flawed RFP process runs its course. Occasionally the prospect will call back, and when they do you will be in the driver’s seat. If they do not, then call them in a month or two and ask how they made out. If the prospect hired an agency and is perfectly happy with that firm then congratulate them, wish them luck, and tell them you’ll check in with them down the road to see if you can be of assistance in another manner, on another day. There is always another day and if you’ve handled the departure properly you will be better positioned for that day.

Guest Author and Expert – Blair Enns of Win Without Pitching

The late, great David McCall used to say that the day an agency gets an account they are a day closer to losing it.  A bit cynical, but very true.  As a recruiter, I have asked many advertising agency executives why they lost an account and many client executives why they pulled their business from their agencies.  Here are my observations from the many answers I have received.

1)    Change in client key personnel

No surprise here.  As they say, “The new broom sweeps clean”.  Many a CMO, CEO has fired their agency and hired a new one in order to work with someone they previously knew or a friend who they trust.  Many simply hire a new agency to insure loyalty to them.  It happens frequently and often without warning, but this happening should be at least anticipated by any ad agency if a new senior person joins their client.

2)    Clients who become tired of their advertising

Clients often become tired of their own advertising long before the consumer does; after all, how often can a company show the same commercial to their sales force? All agencies should anticipate this problem and should be constantly working on ways to refresh a current campaign in order to keep the client enthusiastic.

3)    Agencies do not listen to their clients

I have had dozens of client advertising and marketing executives tell me that their agencies just don’t listen.  Sometimes what the clients want is significant and, ironically, sometimes it is merely the feeling that the agency is not paying attention to their needs.  I had a client tell me that he had been asking his agency to prepare an FSI (Free Standing Insert) coupon ad for both print and digital and his agency simply ignored him.  He hired a new agency to do that and it opened the door for the existing agency to lose the account.

4)    Agencies become arrogant about their own work

Apropos of two and three above, sometimes the work does wear out.  Many agencies have insisted on not changing the campaign when a new solution is long overdue.  This is very common, especially with long-running campaigns.

5)    Agencies don’t insert themselves into their client organizations

A common complaint is that clients don’t see their agencies except for major presentations.  One client told me that he had actually not seen his agency management in two years (although he had seen his account team). Agency management needs to see its clients, no matter how small, on a frequent basis.  Another client told me that his account team never came to see him on a one-on-one basis.  They only came to see him en masse or for major presentations.  Many have told me that they do not hear from their account teams with regularity.  Account people need to talk to their client counterparts every day, even it is just to say hello and ask if there is anything they can or should be doing.

6)    Agencies that have not learned their client’s business

I have heard about agencies presenting work that is rejected because it is not consistent with the client’s objectives or which is inconsistent with the client’s business situation or issues.  In many cases, the client has not communicated its problems or objectives to the agency, but it is up to the agency as a service supplier to learn its clients’ business, even at the risk of being pushy.

Agencies need to have a constant presence at their clients in order to know and understand their account(s).  They must take the time to learn their clients’ business.  And agencies cannot use the excuse that the procurement people won’t allow frequent visits.

7)    Agency Merger and Acquisitions

Never been sure what actually happens, but from observation, accounts seem to leave agencies once they have been purchased or merged.  Change in management and procedures certainly has a lot to do with it.  All too often, senior account and creative people get moved, rotated or terminated which angers clients because it upsets the status quo.  I have never figured out why one agency buys or merges with another and then completely decimates the culture – causing the very clients they purchased to leave.

Guest Author Paul Gumbinner, President of The Gumbinner Company, executive recruiters for advertising.

Creating value is the foundation of your firm’s success, and it rests on a clear definition and understanding of the specific client challenges your firm is best prepared to address. Most firms approach this question precisely backwards, showcasing the obligatory bullet point list of services as the standard bearer of their business strategy. But the capabilities you offer must emanate from the types of business problems you solve for your clients. Clayton Christensen frames this in context of Jobs to Be Done Theory; the idea that clients hire a specific service to solve a specific problem.

The essence of this leg of the model is to clearly define and articulate “What are the problems we solve for our clients?” The most powerful way to do this is to state these problems from the client’s point of view, in first-person language.

Equally important is a clear articulation of the markets you serve. The answer can’t be “everyone with money,” as some firms regrettably define their target market. Peter Drucker famously observed that marketing starts with the question “Who is your customer?” and this question applies just as much to professional firms as to the clients they serve. Your target market doesn’t have to be a type of industry category; it can be a type of audience or even a type of brand.

Delivering value is the second piece of your business model. This means developing and supporting an effective engagement model, which is comprised of your operating model and your production system. Most agencies get high marks from client organizations when it comes to responsiveness; meeting deadlines, reply client requests, and fulfilling scopes of work. In other words, we’re seen as very responsive. (Unfortunately, client ratings for agencies being proactive are dismally low.)

When it comes to the operating model, the central issue agencies must address is differentiating between short-, mid-, and long-tail offerings. These solution sets vary widely in perceived value to clients, and must be delivered in very different ways by agencies. Short-tail offerings are the agency’s unique blockbuster competencies; uncommon services and programs that provide high-value solutions to client problems. Mid-tail offerings are capabilities that are routinely applied in most engagements. And long-tail offerings are the widely available executional services and activities that are seen as standardized (and therefore commoditized) by most clients. These three classes of offerings must be developed, delivered and priced in very divergent ways. The mistake most firms make is bundling all three service classes under the banner of the dreaded “blended rate,” the absolute worst way to address the continually-evolving disintermediation of agency services.

Capturing value is the part of the business model where professional firms struggle the most. The root of the problem is trying to package up the value of knowledge work in a unit of time; a hugely suboptimal way to get paid for the expertise and intellectual capital that resides in your firm.

Effectively capturing value is dependent on having an actual revenue model (billing for your costs is not a revenue model, it’s just a reflection of your cost structure). Professional firms with actual revenue models have replaced their rate card with a “pricing stack, a variety of ways to capture value in ways that align with the principles and practices of modern pricing. These include such approaches as dynamic pricing, two-part pricing, royalties, licensing IP and more. At the very least, it means pricing based on the perceived value of the outputs or outcomes, not the cost of the inputs.

To fully capture the value you create also requires commercial alignment; uniting the entire organization behind a shared vision of what you really sell and how you should get paid for it.

Not planning, but choosing

Especially if your firm has been in business a decade or more, it’s very likely that you’ve arrived at your current business model more by default than by design. You are living with an emergent strategy rather than a deliberate strategy. If this describes the current state of affairs at your firm, you have the opportunity (if not the obligation) to deliberately design your business model.

Your remix is not necessarily to make plans, but to make choices. Business planning is about taking steps and deciding what to include. Business strategy is about making choices and deciding what to leave out. As you examine each element of your business model, the job is to not to figure out how you can be better, but how you can be different. As design thinker John Koklo recently observed, “Leading companies say No much more than they say Yes. Rather than chase the market with follow-on features, they lead the market with constrained focus.

Propulsion is written by Tim Williams of Ignition Consulting Group, a global consultancy devoted to helping agencies and other professional firms create and capture more value. 

I read with great dismay and sadness about MDC merging KBS into an unknown (at least in the U.S.) Swedish agency (Forsman & Bodenfors) and obliterating the Kirschenbaum Bond name.  Without getting into the history of Kirschenbaum and its recent problems, all agencies go through up and down cycles, sometimes those phases go on for years.  But that is no reason to destroy the equity which has been built into the agency brand, especially one that is essentially positive.  The evidence is that once that brand name disappears, the new agency rarely fully recovers.  As a result, when it comes to mergers in advertising, one plus one often equals far less than two.

As every good marketer knows, building a brand name takes years, often decades.  Destroying the brand can take only a stroke of a pen. Changing or obliterating names can be confusing and dangerous for the brand.

One of my favorite stories is how Omnicom screwed up both Chiat/Day and TBWA. Omnicom merged TBWA into Chiat in 1995 and ultimately changed the name to TBWA, eliminating the Chiat moniker.  Yet, even today, especially in Los Angeles, Chiat’s headquarters, TBWA is still known as Chiat/Day. (TBWA was a stronger name in Europe and is rightfully called that in those markets).

Batton, Barton, Durstine & Osborn modernized and became BBD&O and eventually BBDO, which makes total sense. Ditto when Doyle Dane Bernbach was bought by Omnicom, it was changed to DDB/Needham (to accommodate the merger of Needham Harper Steers – but Needham was ultimately dropped); DDB was the stronger brand. Other agency brands are still confused by their own name changes.  JWT is still called Thompson or J. Walter or even J. Walter Thompson; I think I understand why that name was changed, but I could make a good case for having left it alone.  Ogilvy, which started as Ogilvy, Mather and Benson, and subsequently changed to Ogilvy & Mather, became just Ogilvy, but to this day is still often called O&M, even by its own employees (checks still are marked Ogilvy & Mather). Y&R is still Young & Rubicam, even if the full name is not verbalized. Changing a name does not change a culture.

When the founding principals of well-known ad agencies retire, merge or die, unless they made strong succession plans, the agencies often diminish or disappear and rarely recover if they are merged.  Saatchi & Saatchi, at least in the U.S., never achieved its potential when Compton was merged with Dancer and their name was changed to Saatchi & Saatchi.  Saatchi was on of  Briton’s more creative agencies and the two merged into it were heavily package goods agencies, more known for their ability to create effective strategy; for complicated reasons, Saatchi, at lease here in the U.S. never achieved the creative reputation of its London parent.  The merger never took into account the cultures of the two American agencies and the strength of their client relationships.  In the case of this three way merger, one plus one plus one ended up equaling about one and a half.

IPG merged Bozell and Kenyon & Eckhardt and then the two of them into FCB, which was subsequently merged  with Draft.  Now, what remains is a mere shadow of the original agencies.

In a mistaken effort to keep contemporary, merged agencies often drop the names of the founders, which may be unnecessary.  JWT is a perfect example of that.

So much of advertising is driven by creative personalities.  When it comes time to sell or merge the new agency people want their names to dominate, but that often destroys the equity which was achieved by the original agencies.  IPG was smart to leave the Deutsch name alone, even though Donny Deutsch long ago moved on. When IPG merged Lowe into Deutsch, aside from being a cultural disaster, they still kept the Deutsch name dominant. The people who ran Deutsch figured out how to keep their culture, despite often rancorous disagreements with the parent company (and occasionally, Lowe, which subsequently and smartly separated itself).

Kirschenbaum & Bond now joins a long line of wonderful creative agencies which simply disappeared after being merged and submerged – Ally & Gargano, Scali, McCabe & Sloves, Wells, Rich, Greene, Lintas, Ammirati & Puris are all examples of great brand names which disappeared out of the hubris of holding companies.

More often than not, putting these agencies together, without any regard to their individual cultures and differences actually ended up killing the brands, costing the holding companies millions of dollars in the long run.

What a waste.

Guest Post by PAUL GUMBINNER President of The Gumbinner Company, executive recruiters for the advertising industry.

Remember those goals you created in your retreat, summit, on a long car drive, in the shower, etc. for 2018?

That seems like eons ago, doesn’t it? You had plenty of time. You just needed to get a few things off your plate before you really dug in and got started.

Well, guess what — we have about 90 days left. In the US, Thanksgiving is three months from today. And whether you celebrate US Thanksgiving or not, we all know that by December 1st, things begin to grind down to a crawl for that last month of the year (and the first two weeks of January). So if we’re going to make hay, we need to do it right now.

One of the most paralyzing things we do to ourselves is to bite off more than we can chew. Our grandiose plans are so overwhelming that we don’t even know where to start. It’s time to trim that plan down to the essentials.

I want you to identify the two things you can do that would have the most impact on your agency by the end of 2018. It might be getting rid of a toxic employee. It might be doubling down on mentoring an AE so they can take more day-to-day work off your plate. It could be a new business push or fixing an internal system or process that is broken.

Whatever they are — no more than two. And then this week (yes, before the end of the day Friday) put together a simple plan for making it happen. Calendar it. Commit to it. Build an internal team if you need to. But, the finish line is now visible to the naked eye, so we can’t put these things off any longer.

You’ve got 90 days to set yourself up for success in 2019. Don’t dilly or dally. Just get it done!

Thank you Drew!

Quick Survey:

Maybe my load’s not that heavy, but circumstances have brought me to a place and time where it’s appropriate to start looking to hire a new marketing partner. Take a moment to guide me and others faced with the same challenge; comment to identify your favored options. Additional comments welcome.

1. Hire a conventional “big bucks” agency search consultant (if affordable)
2. Reach back to those in my “Other Agencies” folder that have already approached me
3. Conduct a Google or Bing search for agency candidates – a true Do It Myself project
4. Use an on-line agency search “service” or directory to find qualified candidates
5. Ask colleagues for suggestions and referrals
6. Ask my media buddies for suggestions
7. Other …

P.S. – It’s known as agency search and it’s degrees harder than hiring a new CMO.

5 MUST ask questions as well as a guide to help you find the best digital marketing agency to grow your business online.

I was listening to the excellent Robert Craven the other day on the Google Partners Podcast and it occurred to me that it must be a real challenge for a company or brand, to find a digital agency.

There is quite simply a plethora of agencies out there and to complicate matters still, they all focus or major in different disciplines, all claiming to be ‘the best’ or ‘leaders’ in their field. Furthermore, many will display badges of honour – winner of this or commended for that. No wonder people get so confused…

So, I have written this guide to try and help people when looking for an agency to help them grow and develop online. I have also highlighted some key questions to ask as well as some key questions that need to be asked by your potential agency.

Who am I?

I am Reggie James, founder of Digital Clarity. I have worked in the digital marketing space from its initial inception and launched one of the first paid search (PPC) agencies, as well as a tracking and attribution software business used by digital agencies in the UK called DC Storm.  The DC standing for Digital Clarity. This company was acquired by Rakuten in 2014.

Prior to this I worked at two search engines, helping both agencies and clients get found online, and I continue to help clients achieve this today.

What is a digital agency?

A digital agency is the umbrella term given to organisations that deliver services ranging from web design through to Paid Search (PPC) and Search Engine Optimisation (SEO). The term Digital Agency may also cover a whole host of other specialisms that sit under each sub service.

The challenge

There is a major problem in the digital marketing space that is sadly being perpetuated by a number of agencies who were one day a PR Agency and today dress themselves up as a ‘Social Media Agency’. This happens all the time and can cause confusion and bad experiences.

Many clients that I meet may have had their fingers burnt or are reeling from some horrendous experiences where they thought they had signed up for a service with a reputable ‘Digital Agency’ only to find that the team at the agency were not all that they seemed or worse still, were learning some new skills whilst on the client’s payroll. Though shocking, this is not uncommon and quite frankly unacceptable.

Thankfully, things are changing. Experience and verification by both independent bodies and platform owners like Google are helping customers find the cream. In certain disciplines like display advertising, the use of blockchain technology is helping create a public ledger of post GDPR audited agencies and sites.

The importance of digital agencies

So, knowing what we know, it is also vitally important to point out the incredible value great agencies add to their clients.

It is rare to find companies that have the digital marketing prowess, collective skills and manpower that a truly good agency will have.

From creative thinking and strategy through to execution and management, well admired agencies can deliver both resource and fantastic return on investment (ROI).

What should a good digital agency do?

You work in an industry or sector where you have competition. No two businesses in your sector will be the same. The same is true of digital agencies.

A good digital agency will take the time and effort to get under the skin of your business. Whether you are selling to consumers or businesses direct, the need to understand the lead time and business process of your company as well as the competion and where you sit in the venn diagram of your industry are all basic first steps of good digital agency practice.

The questions you are asked by your prospective digital agency will determine whether the agency is the right fit for you.

What types of digital agencies are there?

Firstly, there are many. Here are a list of a few below.

The extended specialist

Web Design, these services could include:

Design & Development
User Experience (UX)
Innovation
Languages
PHP
Python
Net
CMS

WordPress
SiteCore
Etc.

Branding

Messaging
Logo design and development

The Jack of all trades

These are referred to as full-service digital agencies and in many cases can be the larger agencies. This agency model is going through a seismic shift as many clients may be paying for a suite of services that they will never use or simply do not even need.

The full service agency model, when analysed deeper –  one can normally see a shift toward a certain service. This means the agency at one point specialised in a discipline and then augmented services or bought companies to align disciplines. Why? More than likely, to win new business or keep existing business.

The ‘me too’ agency

These are agencies where they may have been involved in non-digital work, but are looking to capture new work by adding the word ‘digital’ to their name, or offer services that are out of their comfort zone. This can Web design agencies who suddenly feel they are SEO specialists and start dabbling in the art and science of Search Engine Optimisation. Quite simply, this normally ends in tears.

Questions to ask

I covered this question in an earlier blog when i looked at choosing a PPC Agency and it’s always worth going back to compare questions.

In many cases where I have come across a client who is in a toxic situation with an agency, I have often been asked to mediate or help transition the relationship to its natural conclusion. On reflection with both the client and the agency, it is normally the questions and due diligence that has led to both parties starting off on the wrong foot.

So what questions can a client ask a prospective digital agency? Here are 5 must ask questions:

What disciplines of digital marketing do you do?

Search? If so, PPC or SEO or both?
Web Design and Development
UX / UI
Digital Transformation
Social Media
Etc.

If it’s more than one of the above, which areas do you specialise in?

Of your specialist disciplines, can you demonstrate your skills-sets with some examples?

Case Studies
Testimonials
References
Etc.
How will these skills help my business?

Can you share projections?
Your process
The day-to-day running of the account
Analysis and reporting
Etc
How would you go about working with me?

On boarding process
Needs analysis
Etc.

Conclusion

Once you have your answers to these questions, it will much better help you shape your opinion of both what you require as well as see if the agency is the right fit for you and your business.

Note: This is an opinion piece  by Reggie James, founder of Digital Clarity and not necessarily those of AgencyFinder.

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Our company matches advertisers with qualified marketing firms, so we constantly field requests for branding firms, branding services, or just for branding. Conversely, it seems every agency today declares themselves to be a branding or digital agency. So just like media alternatives have grown to a complex set of options, so have the meanings of branding and marketing. Here are some versions that may help simplify things.

Start with Branding. The one I like says it’s the essence of a product or service. “The intrinsic nature or indispensable quality of something, especially something abstract, that determines its character.” Or “a property or group of properties of something without which it would not exist or be what it is.” Accordingly, the toolkit of adaptations agencies claim they can bring to bear on branding generally seem reasonable, but they generally serve as participles to the noun branding. Does it seem reasonable then that the essence of anything could serve to promote itself? Any more than a race horse could win a race without running?

That’s where marketing comes in. Marketing runs the race. Some say “Marketing is the process of bringing goods or services to market.” How’s that for simple! Marketing then as an all-encompassing concept is far-reaching. It could include research, advertising, public relations, direct marketing, social media, experiential and more. Curious then how digital fits in that set. Yet most agencies today are want to declare themselves as a digital agency. To add to the confusion, it seems everyone pontificates about branding and marketing. Since those conversations will undoubtedly continue, in the meantime I hope this helps.

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