At the end of last year, AdAge claimed that 2022 would be even more busy than 2021.
And so far that prediction has been 100% accurate.
What’s driving the huge amount of activity? It could be pent up 2021 demand… the great resignation… or a whole slew of reasons.
But one thing’s for sure, brand are looking for new agencies. And they are looking to onboard them fast.
How are agencies managing this blizzard of activity, staying above water and qualifying the best-fit brand partners?
Find out by watching this quarters smAARt Huddle here.
What’s Trending: Breakfast is branching out in a big way. Exotic breakfast items such as bacon naan, Malaysian kaya toast, Japanese egg sandos, and breakfast burritos/tacos are gaining popularity in the West.
What’s more, 56% of Americans say that they now love breakfast more than they did a year ago. Cal-Maine Foods, America’s largest egg company, saw a 62% YoY increase in sales in Q4 of 2020.
Popularity of breakfast and brunch foods has been on the rise for a while, but less time spent commuting to work in the morning since the pandemic has accelerated the trend. Ongoing lockdowns and mandates have also forced people to socialize earlier in the day.
The Opportunity: Capitalize on the breakfast boom by thinking about:
- Breakfast foods with functional ingredients like protein and fiber (e.g., keto cereals).
- Experiential dining such as elaborate brunch events, harvest tables, picnics, platters, and charcuterie boards (searches for “breakfast charcuterie board” are up 5x on Pinterest).
- Breakfast/brunch meal kits, which are already popular in London. Thirty-six percent of Americans say that they would like to be able to purchase them from their favorite restaurants.
- A new take on traditional breakfast foods such as mac and cheese waffles and pancake cereal, or “brinner” and “bressert” foods (79% of Americans have eaten breakfast foods outside of traditional breakfast times in the past year).
- Convenience foods, like these Egg Bites and Smart Eggs from Organic Valley, and “take and bake” products.
- Plant-based breakfast options like these frozen folded eggs made from mung beans.
Adventure Foods Are Climbing Just As Fast As The Breakfast Boom
Interest in lightweight, easy meals for camping, hiking, and trail running is growing.
The r/trailmeals subreddit (“a community devoted to recipes you can cook while backpacking and camping”) has doubled in the past two years from ~47k in August 2019 to ~100k today.
Source: Subreddit Stats
Mountain House, which specializes in freeze-dried adventure foods, is making millions every month on Amazon, according to Jungle Scout. For example, this bucket of 12 assorted camping meals makes $760k/mo., while this breakfast skillet makes $340k/mo.
The market for convenient adventure meals is set to grow as people continue to embrace camping and pilgrimages in the wake of COVID-19. The trend may intersect with the vegan, vegetarian, and health-conscious movements, too.
Don’t be afraid to get fancy, either. Airlines such as Finnair have started selling their Business Class meals in grocery stores, suggesting that bougie convenience foods to match high-end glamping experiences may just be a thing.
Next Steps: If you have a craving for more new business in an “eggsploding” sector, the breakfast boom and adventure foods are both something to take a bite out of… (excuse the puns). Prospect smAARt, pitch with purpose, and most importantly, with passion.
New Business… it’s a role that isn’t for the faint of heart.
It requires grit, determination, hard work… and above all, a process.
And building that process is where so many agencies struggle and ultimately fail at generating clients outside of their referral network.
But what if I told you that your agency can develop a solid new business pipeline that predictably generates new clients month over month?
In our latest Lesson Session, we are joined by the new business veteran himself, Christian Banaach, as he discusses how to build a sales process for your agency that generates a predictable pipeline of new business.
In this 30 minute Lesson Session, you will earn:
- What outbound prospecting is
- How to proactively prospect new business
- How to launch and optimize your sales process
Watch it here: How to Generate a Predictable Pipeline of New Business Opportunities
Enjoy!
For more information about Christian Banach and his consultancy, connect with him on LinkedIn or visit his website.
Hello and welcome to AAR Partners’ new biz quick tips shared exclusively with our AAR Agency Growth Program Partners.
You spend hours on prospecting and pitching a new client and it often feels like it all comes down to one question: “What are your fees?” And no matter how often we ask prospective clients to circle back after reviewing all proposals if the fee is too high, they do not.
In fact, AAR Partners recently pitched for B2B client in the automotive aftermarket and it was down to two finalists: AAR Partners and the unknown X. After speaking with procurement and highlighting reasons why AAR Partners’ pricing is value-driven but underscoring that we would consider sharpening the pencil after they compared the two final fee proposals, he decided to go with the lower bidder. His answer as to the rationale for not selecting AAR Partners, “Your fees were too high.” Even though I asked, he didn’t bother coming back to discuss how we could adjust the price… once the “sticker shock” hits, it’s often too difficult to change someone’s mind.
So how do you tackle the money talk with prospects? We often avoid it until after we’ve obsessed over every last detail showcasing our decades of relevant expertise, skills, capabilities, resources, USP, and so much more… right?! Then comes the biggest hurdle: your fees.
There are many solid pricing strategies such as:
- Competitive-Based
- Dynamic Pricing
- Price Plans
- Cost-Plus
- Incentive-Based
- Value-Based
I will say what doesn’t work too well is sharing an itemized list of fees for all services. Viewing options in an itemized list is daunting. The more numbers there are the harder it is for our brain to process them, so it makes complete sense to present them to the prospect in one, clear figure.
With an itemized fee list, it’s just a bunch of numbers thrown at them to figure out, make them recoil and start searching for cheaper options.
You’re inviting the client to pick apart your fees; it’s hard for them to think about anything else.
The second issue is a psychological problem called loss aversion. The theory is that the psychological power of loss is double that of any gain.
What does that mean for your cost estimate?
It means that your prospect reading the itemized list will experience a perceived loss at every line with a price next to the service.
Instead of itemizing, think about showing your fees as a pricing bundle. Give the prospect a benefit-reminding-title (such as: increasing online leads package) with the total fee next to it. Then highlight all of the services underneath the fee showcasing all added-value and reminding them that your fee is an investment rather than an expense without any return.
But when should you start talking about money?
The answer? At the start. Don’t wait.
I’ve recently read about a PR agency that was growing very quickly due to one change in the way they tackled the money talk. They tell all prospects they only work on retainers and the bare minimum fee is $10,000 per month. They LEAD with the price tag. I also had a discussion with a mid-sized media agency who also leads with their service fees.
Their philosophy is simple. The prospect can either afford them or they can’t. If they can’t then they don’t waste weeks-worth of time on prospects whose budget is not in their ballpark. Instead they spend 100% of efforts on prospects that can afford their services, which gives them a 90% close rate!
It may seem awkward, but when you’re upfront with your pricing, you get down to business right away, allowing everyone to skip the price dance at the beginning. It’s better to discuss budget upfront before negotiating on the specs of the project because even if you agree on that perfect solution, it isn’t going to magically transfer money into the prospect’s bank account or add a budget line item.
Of course, you must have defined price points organized into “packages” to help prospects organize, focus and narrow in on the most appropriate SOW for the project at hand. These “packages” will act is a guardrail and starting point for every prospective project and will also help set expectations… which is the other 50% of the battle when speaking with prospects.
There you have it. That’s my counsel on this topic and I hope it helps. Look out for more of my new biz quick tips shared exclusively with AAR Agency Growth Program Partners…
“NO!” It’s one of the most crucial words to use when it comes to new business.
Over the decades, many agencies have asked me some version of: “Which agency is “killing it” or truly standing out in the pack when it comes to new business wins?”
Truthfully, the answer isn’t relevant to the agency asking since the response is typically unique to that agency that is doing so well.
However, there is one strategy that is vital to increasing new business and it’s learning how to say “no” more often. Sounds counterintuitive but it is key in agencies who are successful and critical when it comes to qualifying prospects.
Although it can be tempting to pursue any prospect who expresses interest in your agency, the truth is that not all prospects are going to be a great fit. It is in your best interest to identify good-fit prospective clients early. However, agencies often ask these same typical qualifying questions about the prospect:
- Good initial revenue potential?
- History of being a good client?
- Is the agency passionate about the brand?
- Can the agency do innovative work for the brand?
- Is there long-term growth?
They are all fair and legitimate questions but there are additional questions, in particular, that will help truly qualify and pinpoint an ideal client. Let’s evaluate them here:
1. Know yourself.
Know what your agency excels at and what types of work are best handled by your team members. Create a target client profile, if you haven’t already, based on culture, emotional reasons for wanting to work on a particular brand as well as rational reasons. Know your values. When 72% of U.S. consumers believe that it’s more important than ever to buy from brands that reflect their values, you better believe mutually-held beliefs are going to be a major relationship driver for clients looking for a potential agency partner. Be aligned about what drives your team and what you believe in as an agency.
Just as important, think about your category and persona experience. Is this client a good match with your expertise when it comes to sector and target? One of the easiest ways to eliminate an agency from the pitch process is to disqualify them based on little to no category experience… Be sure to avoid that situation.
As for culture, as mentioned above, know what drives your team. Know what makes you want to get out of bed in the morning and what makes your heart beat. Know the “why” behind what you do and be sure the prospect is a good match for the way your agency works.
2. Determine the prospect’s timeline.
During this upswing in new business opportunities, you might have the resources to expand your team or improve your tools as you reach for new business. But what you don’t have is the ability to add more hours to your workweek for the purpose of qualifying leads. That’s why you need to know if a prospective client has a defined timeline for their project, or if they’re still in the early stages of figuring out their goals.
If a prospect knows their issue but doesn’t have a sense of urgency about solving it, they’re not ready to work with you. And you need to be focusing on companies who are ready to offer their business to your agency now. In this respect, qualifying leads is kind of like dating: You don’t want to waste time nurturing a prospect who doesn’t know what they want or when. You’re going to be much happier if you focus your client courtship energies on those who know what they want and have at least a moderately good idea of their timeline, so that you take the plunge together and both enjoy the ride.
It’s fine to keep the lines of communication open with a client still in the very early stages of figuring out their needs. Just don’t invest the bulk of your time and resources chasing these leads.
3. Get to know the person with the authority to commit
It’s super frustrating to spend time qualifying a lead only to hear, “I’ll have to run this by my supervisor/our team lead/our VP. They’re the one with the ultimate decision-making power.”
You may have to spend time presenting your case all over again, or the details about why your agency is the best fit for the client’s project may get lost in translation at their next team meeting.
Avoid wasting your time by working these two questions from The Brooks Group into your initial qualifying conversations:
- Who else, other than you, will be involved in the agency partnering decision?
- Could you describe the process you will be using to make this decision?
Knowing the scope of involvement and authority of the prospects you’re speaking with will help determine how your qualifying process moves forward- or not!
4. Ensure they’re willing to listen to and trust your team.
Once they’ve explained their problem, are they going to be willing to sit back and listen to your solution? They need to hear you out and trust that your team has the expertise and skills to follow through with a workable plan. And trust is not built in one meeting… it takes multiple interactions with the prospect.
A potential client who just wants to hear your solutions without offering any real insights, materials, research or details is not a quality client that thinks of an agency as a true partner.
You should gauge a new business prospect not only on the scope of their project but on the sense of trust you perceive from them from the start of your qualifying process by how much information they are willing to share in order to be part of successful solutions..
5. Find out their budget
Every agency wishes they could help everyone – it’s human nature to want to help others – but we all have to put food on our proverbial (and real) tables, too, so asking upfront what a prospect’s budget is isn’t tacky, it’s realistic. No budget? No go! It’s that simple.
Ask what their budget is early in your qualifying prospect to get an immediate idea if they’re a client worth pursuing. If they provide an exact amount or a confidently accurate estimate, and it fits your minimums for the project’s scope, great! If they don’t have a budget (gotta love that one) then ask them for the scope of work and provide them with a budget range… see if they flinch at the number.
If they hedge the question or provide a number you know is too low for what they’re asking, it’s time for an honest conversation about the value of an agency partner and your agency’s work in particular. If their lack of budget will be a dealbreaker, thank them for considering your agency and ask them to keep you in mind should their financial situation change.
6. Ask them what success looks like
This is another way that qualifying advertising prospects is like dating: You should agree on what a successful partnership looks like.
Be specific with this line of questioning. It’s not enough for a client to say, “We want to introduce a new product,” or “We want to increase sales.” By how much do you want to increase sales? Is that in terms of volume or revenue? By what deadline? How much reach are they hoping their new product will have? How much revenue should it earn? You get the idea.
Establishing mutually agreed-upon, SMART (Specific, Measurable, Achievable, Relevant, and Time-oriented) goals will set up both your agency and the client for a better relationship.
Conclusion: Use the Pitch or Ditch Chart
Qualifying client leads can be a lot like dating: It’s fun if you both have the same goals and similar values. Lots of magic can happen when you’re on the same page as your client! But if one party isn’t sure about what they want, or keeps changing their mind, it’s best to end the budding relationship, refocus on what you want out of a relationship, and move on.
I’ll leave you with one quick story where AAR Partners recently pitched a rather large insurance brand. By the end of the hour not only did we realize that we were sharply contrasting groups in terms of culture and work ethics but the idea that they had no clue about a budget or if they needed one, two or three agencies just didn’t sit too well. Within 20 minutes after we left the Zoom room, we sent them a thank you but no thank you email and wished them the best of luck with their review. Knowing when to say “no” is a vital part of qualifying prospective clients.
And knowing what to ask a prospective client is the best way to qualify them before things go too far. Adopt these lead qualifying questions to your agency – they’re guaranteed to help you build a longer roster of leads that turn into long-lasting, mutually beneficial client-agency relationships.
If you would like to use AAR Partners’ “Pitch or Ditch” chart (see below), please feel free to implement it in your qualifying conversations and remember to always pitch with passion!
