How Demonstrating Value Grows Agency Retainer Business
One of the biggest challenges marketing agencies face is keeping their revenue consistent. Generally, an agency has two ways to generate revenue from clients – single projects and reoccurring marketing services. Both sources are essential for a healthy agency but keeping clients on a retainer offers many more advantages.
The Advantages of Retainer Clients
There are many advantages of keeping clients on agency retainer business.
1. There is a predictable resource allocation. It’s easier to keep a steady budget, manage the staffing, focus on hitting company objectives and build a team.
2. Agencies become less reliant on using their budget on advertising and marketing to bring in new clients for one-time projects.
3. Long-term projects mean agencies can go deep into a client’s project. They will deliver better results, build on a solid foundation and establish a strong reputation in the industry.
Despite the advantages of having clients in a retainer, agencies must get over the hurdle of getting clients to agree to a long-term commitment. It’s not a matter of having a stronger sales presentation. To get clients to sign on, they must be shown a great amount of value for their investment.
How to Demonstrate Value to Clients
How can agencies demonstrate value to their clients? The first step is to determine which key performance indicators are important them.
- Do clients want to acquire more leads?
- Are they strictly focused on the bottom line?
- Are they looking to build a brand and want to build an engaged audience?
In most cases, it will be a combination of several goals but it starts with knowing which ones are on the top of the list.
Next, agencies need to show their clients’ results. They must deliver on the key metrics that represent the value the clients are looking for, not just report a collection of statistics. Data for campaigns demonstrate key activity indicators and provide projections of future performance. This conveys value to clients.
While it may seem like it will consume resources to deliver reporting or campaign goal achievement to clients in real-time, the right automation platform makes it easier.
Putting It Together
Finally, agencies differentiate themselves with a strong unique sales proposition demonstrating specific advantages and traits unique to the agency. This is very important as there’s no guarantee a client won’t shop around after the initial project or term commitment.
So, if an agency specializes in helping real estate agents secure more clients, it should clearly be a part of the marketing and sales presentation. Emphasize the advantages a specialized agency offers to a client.
By learning what’s important, delivering on client goals, providing reports regularly, and differentiating their business in the industry, agencies demonstrating proven value have a definite advantage to signing long-term commitment clients and growing agency retainer business.