Hoping to Grow Your Ad Agency? Support Growth Goals With Existing Customers
In the best-run agencies, about 60% to 70% of new net revenue comes from existing clients. At the same time, however, these agencies often lose anywhere between 10% to 15% of their clients. Attrition is inevitable, and it’s frequently due to factors outside of an agency’s control (e.g., mergers, reorganizations).
So, when setting your growth goals for the year, you need to take both numbers (new revenue and attrition) into account. Unfortunately, it’s easy to forget them when you’re in the day-to-day weeds. And because account executives serve as intermediaries between your agency and client roster, business growth will often hinge on their efforts.
If you’ve got an account executive managing $400,000 of adjusted growth income and the growth goal is 10%, then that individual must add $40,000 to the book. It only stands to reason that 60% to 70% of that number will come from existing clients. This might not sound like much, but tight budgets can cause the account executive to come up short.
In light of this, it’s more important than ever for you to position your account executives for success. Their wins are your wins, after all. Here are five ideas to help you support them in their business growth goals with existing customers:
