14 Agency Leaders on Unstalling New Business to Restart Growth

Getting ghosted by new business prospects? Experiencing a longer sales cycle? You’re not alone. A survey conducted by Christian Banach asking agencies about their biggest challenges in finding new business found that 94% identify a longer sales cycle as an obstacle.  This drove our team to gather a panel of agency leading execs to probe on what, why and how to overcome these stalls.

With business feeling hot and cold at the same time, with a few months in the cold, followed by a hot streak, planning for 2024 seems difficult. Janet Vinci, VP of Client Services at Christian Banach, and Leeann Leahy, CEO of VIA, invited 14 industry experts with a range of specialties to discuss how to get the agency pipeline unstuck. Here’s how they’re navigating the headwinds of the post-pandemic market.

Brands Ghost as Purchasing Decisions Move Up the Ladder

Why are agencies losing clients right before the finish line? Leeann Leahy, CEO of VIA, said clients ghosting after a pitch was a phenomenon that began in 2021 and has been followed by fewer opportunities in general—the middle of the year feeling like a desert, business-wise. Leahy observed budgets are getting smaller and that “getting people to make decisions seems to be getting more difficult.” 

CMOs seem to have had more decision-making powers stripped away now. Some pitches end with talking to someone who doesn’t have the power to ultimately make the call. Decision-making is moving further up the chain and to other departments, and Leahy suspects it might be due to a closer watch on financials. Christine Hilgert, SVP at Meeting Expectations, has noticed that decision-makers “are being pulled in many different directions,” and discreet decision-making is a lot more difficult. Identifying good buyer personas is important, but the proliferation of multiple marketing titles means it’s harder to define a target.

 Jayme Maultasch, Managing Director at Deutsch, observed client direct pitches can sometimes run into the difficulty of clients not being sure of exactly what they want or getting responses from agencies which interpret their briefs very differently, noting a “significant deviation as compared to consultant-led pitches.” “Making deliverables clear and establishing a meeting communication stream can help jumpstart some of our direct client work,” added Maultasch. When agencies understand the internal challenges your clients face, they’re better positioned to convince them to close.

Taking the fear out of the decision-making process

Many are encountering clients who are spread thinner and have smaller budgets. Shari Aaron, SVP Growth & Innovation at Radius, said that clients are being charged with “working more collaboratively, which, coupled with clients having less time to think, means you have to be crystal clear—almost elementary—in the way you are sharing.” She added that uncertainty and risk on the client side is certainly a barrier to committing to an agency’s vision.

Does that discourage agencies from seeking net new clients? Some have found focusing on their current clients a more manageable way to navigate slower growth. Molly McGaughan, Managing Director at design and technology firm Beyond, has had as many as 44% of deals lost by simply being ghosted after a pitch and thinks it might be a manner of helping clients get over their fear. “How can we as an agency partner share in some of that risk, or maybe assume part of that risk, to take the fear out of the decision-making process,” said McGaughan. 

Some agencies that focus on rebranding are seeing slowed business as fewer acquisitions and slowing tech industry growth characterized 2023. Aaron Smith, Global Principal at Wolf Ollins, remarks, “A few years ago, it felt like agencies had more power—companies wanted to invest and come out of the pandemic strong. That meant strong growth and premium pricing, but that’s shifted a lot.” Companies are pulling back their spending, and some agencies are undercutting prices in a more competitive market. Clients are realizing they have more power to demand price reductions.

Steve Rosen, Managing Director at Wilmington, Delaware’s Aloysius Butler & Clark, said that ghosting does seem more common now and has “never seen such a drive toward ROI and lead generation, from higher ed to financial to non-profits; if you’re working as a marketing organization, what is your quantifiable ROI is the most important question.” Agencies have to work harder and be more flexible to capture more risk-averse clients.

Transitioning to Virtual Relationships: Role of Data and Creativity

Creativity can move the needle for agencies in an increasingly crowded market. Dave Lovelace, VP Strategic Development at Si Group, whose team’s work is often an extension of what internal teams are doing, has seen different ROI expectations for internal vs external marketing teams, with some clients having unrealistic expectations. “You can back it with data and examples, but it doesn’t seem to be landing. Even if you have a proof of concept, if you also have an internal team, there’s a fear of making the investment,” said Lovelace. 

The shift to remote work has meant that teams feel more siloed, and that means all pitches are virtual now, too. Kelly Nice, Partner and Cofounder of Nice & Company said that he’s seeing control becoming more centralized at larger brands “with more decisions moving up the ladder… there is a lack of clarity in terms of direction.” Many teams are working without ever getting in a room together. Less risk-taking might go hand in hand with more desire for ROI. 

“The virtual realm has created a lack of familiarity and trust in teams,” Leahy added. Leahy also cautioned against an overreliance on metrics to the exclusion of creativity. While she appreciates the rigor of using ROI-driven approaches and data, one runs the risk of  “optimizing to mediocrity.” Leahy instead encouraged finding informed creativity to avoid the pitfall that “the biggest risk is not taking a risk at all.” She added, “We intellectually understand the value of creativity, but we as humans are programmed to recoil from creativity because it’s different than what we’ve seen before.” 

McGaughan’s team has experimented with pitching “teams” as opposed to a project or retainer-based model. She said, “What we’re trying to understand is if it’s a singular skill or a certain challenge can be solved by a small team, how might the model frame change the ‘stuck’ mindset? Maybe clients just need a teammate to work alongside them as opposed to a big budget with fixed deliverables which may not land.” Taking the risk out of purchasing commitments lets clients take more risks where it matters—the creative.  

Bespoke Services: Why Agencies are Embracing a la Carte Marketing

Traditional pricing models are intimidating to risk-averse clients. Justine Henning, Chief Client Officer at brand and digital marketing-focused Hirshorn Zuckerman Design Group has tried a “pods” model, articulating their skillsets into more manageable offerings—a “strategy pod,” “project management pod” or a creative pod.” They’ve also moved into a “reserve fund,” which offers clients a more customizable way of directing their budget, “so if they happen to pivot a quarter of the way in, they are able to pivot more quickly in their strategic thinking because they have a bank of hours as opposed to having to completely rethink their scope.”

Smith suggests a more workshop-based approach and the “shell game” model of narrower project scopes to lower the price point and give clients exactly what they are asking for. He then recommended continuing to follow up with clients for more business after you prove your value and they are invested. 

Others suggested rethinking models of pricing and commitment. Janette Palmer, Partner at Nail Communications, has found success with having clients initially sign on with a strategic phase, getting a sense of what the budget is, then bringing clients along. Nail uses a fixed bid basis instead of one that tracks work by the hour. “Because clients simply don’t care, they don’t know how long things take, so as long as we can deliver if the scope doesn’t change, they’re often open to that,” added Palmer.

Lovelace has more success with a minimum six-month pilot to ensure his team can prove its value, saying, “simplifying the budget process for our clients and focusing more heavily on how we’re impacting their pipeline. You’re buying pipeline, but we also give actionable insights and enriching data.” Nice agreed with rethinking pricing models, adding, “We try to sell on the outcome. Clients think we’re commodities, but they all need external points of view and need the expertise that they can’t get inside. Charging by the hour also encourages them to think of us as competition with their internal team.” Agencies can start to put more wins on the board with more flexible pricing. 

What Does this Mean for New Business in 2024?

With a variety of stalls happening throughout the pipeline, agency leaders need to have multiple strategies to ensure the pipeline is not blocked. This includes making sure your top-of-funnel has enough right-fit prospects. It means developing content and touches to move prospects through the pipeline, and to the RFP stage, faster. You may consider getting past the pitch phase with a range of strategies from packaging your proposals with flexible terms and services to creating bite-size projects to test out your agency. Those who have found success are adjusting to how purchasing decisions have evolved since the pandemic, are willing to take on more risk and are helping clients see how creativity drives ROI. 

For more insights or to discuss further how to help your agency identify your stalls and find new strategies – reach out to Janet Vinci at janet.vinci@christianbanach.com.

Panelists:

(Moderator):  Janet Vinci, VP of Client Services at Christian Banach

(Key Speaker/Special Guest): Leeann Leahy, CEO VIA Agency

Shari Aaron, SVP Growth & Innovation at Radius

Steven Rosen, Managing Director at Aloysius Butler & Clark

David Lovelace, VP Strategic Development at Si Group

Justine Song Henning, Chief Client Officer at Hirshorn Zuckerman Design Group

Jeanette Palmer, Partner at Nail Communications

Christine Hilgert,VP at Meeting Expectations

Sidney Blank, Partner at MBLM 

David Schultz, President of  Media Logic

Kelly Nice, Partner and Cofounder of Nice & Company

Aaron Smith, Global Principal at Wolf Ollins

Leslie Tettensor, Cofounder and Principal at Selo Studios

Molly McGaughan, Managing Director at Beyond

Jayme Maultasch, Managing Director at Deutsch