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10 best customer loyalty programs and their case studies 0

Posted on July 09, 2017 by Rob Petersen

customer loyalty programs

Customer loyalty programs use principles of rewards, convenience and appreciation to give their customers lifestyle access not available anyplace else.

Most people think of customer loyalty programs as an airline that gives miles to frequent fliers or a hotel that gives points toward a stay or a restaurant that offers a punch card incentive. But the best customer loyalty programs find function delighting customers in their daily lives.

Successful customer loyalty programs have high revenue yields for brands. That’s because:

  • 6X more expensive to win a new customer than retain as existing one (Parature)
  • 5% increase in customer retention can lead to a 25-100% increase in profit for your company.  (Harvard Business Review)
  • 68% of millennials wouldn’t be loyal to a brand that doesn’t have a good loyalty program. (Loyalty Report)

What are the best customer loyalty programs? How to they work? Why to they succeed?

Here are the case studies of 10 best customer loyalty programs.

AMAZON PRIME: Offers selection, convenience and immediate gratification

customer loyalty programs - amazon prime

A list of best customer loyal programs has to Amazon Prime. For $99 a year, Amazon Prime offers not only free shipping, but also other benefits such as live streaming music, movies and TV shows, storage for digital photos and more. Amazon Prime is integrated into its customers life. For the person who takes full advantage of the Amazon Prime membership, the benefits can far exceed the annual fee. And as a result of paying for a membership, the customer will buy more often from Amazon. Amazon also offers apps for its website, music, TV and movies and more. According to a 2015 report from Consumer Intelligence Research Partners, Prime members spend an average of $1,500 per year on Amazon.com, compared with $625 per year spent by Amazon customers who aren’t Prime members.

 

CVS EXTRACARE: Personalizes offers based on buying behaviors

customer loyalty programs - cvs

 

Generating customer loyalty is crucial to CVS’s business. ExtraCare has more than 80 million active members. One out of every four households in the U.S. uses ExtraCare. CVS is able to mine member purchases and demographic data and pair it with internal research (e.g. online communities, surveys) to deliver personalized offers and marketing communications. Mobile is a good way for CVS to bridge the digital and in-store shopping experiences. Customers can download the CVS app to manage their prescriptions, order photos, and see wait times for CVS’s walk-in clinics. The CVS app has more than 19 million downloads.

 

M.A.C. SELECT – MAC COSMETICS: Uses tiers to increase engagement

customer loyalty programs - MAC Select

Estée Lauder’s brand, MAC cosmetics, has a loyalty program, M.A.C. Select. The program, for online shoppers, features three tiers. Tier one: Seduced – to join this tier, you don’t need to make a purchase. You just need to sign up. Perks in this tier include early access to limited-edition products. Tier two: Devoted – if you spend $150 or more in a year, you are eligible for this tier. You get early access to select collections, complimentary express makeup application, enhanced product samples online, and complimentary two-day expedited shipping. Tier three: Obsessed – for those who spend more than $500 per year on products. The highest accolade in the rewards system. As a member of this tier, you get to be the first to shop in certain collections, have first access to new products, two complimentary make up applications, complimentary two-day expedited shipping when you spend a minimum of $50. MAC is the world’s leading cosmetic company. M.A.C. Select keeps customers engaged. The tiers have a pricing structure that motivates customer to move us so they get more exclusive treatment.

 

MARRIOTT REWARDS: Targets key customer segments

customer loyalty programs - marriott rewards

 

Marriott Rewards® wants to increase participation among millennials. Marriott creates the “Year of Surprises”, an ownable event that could easily be duplicated across the U.S. Using a responsive website, advertising, events, video, social media, bloggers and more, Marriott Rewards celebrates its 30th birthday by giving away surprise parties to customers over the course of the year. The results are:  1) 196,909 new Facebook fans (904,000 total), 2) 740 new Marriott Rewards enrollments via social channels, 3) 1,263,710 site visits and 4) 602,334 entries.

 

MY STARBUCKS REWARDS: Offers exclusivity and convenience with state-of-the-art technology

customer loyalty programs - my starbucks rewards

 

Starbucks Rewards is often regarded as one of the best customer loyalty programs. What makes their program so great? 1) Outstanding Mobile Experience. Starbuck’s app makes their loyalty program more interactive and more effective. It is easy to see how many “stars” (points) you currently have, as well as make payments or even find a Starbucks location. 2) Rewarding for Grocery Products. Starbucks was able to expand the scope of its loyalty program by introducing points for purchases outside of their retail locations. Starbucks sells many products outside of their retail locations, including: coffee beans, tea, K Cups, and ready to enjoy drinks. 3) Exclusive Gold Card. When a member of the Starbucks program gets 30 Stars in a 12 month period they achieve “Gold Level” status. This comes with some great perks including: free refills on ice or brewed coffee, free refills on tea, free food and drink offers, and most importantly the personalized gold card.

 

NATIONAL CAR RENTAL EMERALD CLUB: Collaborates with consumers to improve customer experience

customer loyalty programs - national car rental emerald club

 

National maintains a deep, continuous, and real-time connection to customers through Emerald Exchange, a private, online community of loyalty club members. Emerald Exchange members share personal accounts of their car rental experience via photos and videos and serve as an extension of the “on-the-ground” National team. Opinions, ideas, and feedback from community members helps National improve and innovate its programs and services, delivering on the brand’s commitment to providing a superior customer experience. Since launching the Emerald Exchange Community, active Emerald Club membership has increased 27% and National Car Rental company revenue has increased 32%.

 

PATAGONIA COMMON THREADS: Shares customers’ values

customer loyalty programs - patagonia common threads

Patagonia, an eco-friendly outdoor apparel company, realizes that its customer needed more than just points and discounts from customer loyalty programs. In conjunction with eBay, it implements the Common Threads Initiative to help customers resell their highly durable Patagonia clothing online via Patagonia’s website. Patagonia customers pledge to buy pre-owned gear whenever they can and sell whatever they no longer want or need. The collaboration marries Patagonia’s “ironclad” guarantee of durability with eBay, one of the world’s largest marketplaces for clothing and apparel, both pre-owned and new. Nearly 70,000 people have taken the Common Threads Pledge to reduce their environmental impact. More than 57,000 Patagonia items have found a second life in the US and UK.

 

SEPHORA’S BEAUTY INSIDER: Demonstrates personalized exclusivity

customer loyalty programs - sephora beauty insider

With over 10 million Beauty Insider members, Sephora is definitely doing a couple of things right. Here are three of the top reasons Sephora’s loyalty program is so successful. 1) Effective Use of Tiers:  Tiered programs are effective when the upper tiers have a minimal amount of members, usually around 10%. You want your most loyal customer to feel like they achieved something that others could not, and get other customers striving to get there. 2) Rewards Match the Brand and Customer Base. Sephora’s Beauty Insider Program is seen as a high end or luxurious program, and they have created a redemption that reflects that. Instead of using points for a discount, Beauty Insider members can use their points to claim more beauty products at the Rewards Bazaar. 3) Personalized Product Recommendations: A shopper simply inputs hair type, hair concerns, skin type, and other information about themselves into the “Beauty Profile” and Sephora generates recommendations specific to your information.

 

SOUTHWEST RAPID REWARDS: Shows appreciation that’s simple and streamlined

customer loyalty programs - southwest rapid rewards

Southwest Airlines prides themselves on their commitment to customer service and equality by offering a streamlined business model with an emphasis on simplicity and efficiency. RAPID REWARDS rewards customers based on value and profitability has better value proposition for both customer and Southwest. Large scale data migration of millions of members along with their existing credits and flight flown history are collected in a Siebel Loyalty application with minimal downtime. Enhanced tier structure and redemption options allow for improved functionality for A-List members and points rules. New and powerful ways to define ad hoc promotions help further capitalize on Rapid Rewards Program. And there is interactivity with a large number of internal and external applications such as Southwest.com, Reservations, Kiosk, IVR and program partners.

 

WALGREENS BALANCE REWARDS: Creates a level of service that keeps brand top of mind

customer loyalty programs - walgreens balance rewards

 

Walgreens Balance Rewards has more than 150 million registered members and more than 85 million active members, offering both its marketers and its CPG partners a wealth of data. Walgreens has an app that allows customers to refill prescriptions, monitor their orders, pay using their phone, and earn and redeem awards in the Balance Rewards program. Like the Starbucks app, it is a lifestyle app that keeps Walgreens top of mind with its customers. Walgreens’ “Thank You” program is one example of how the brand leverages personalization effectively. Walgreens segments its shoppers into three groups based on their propensity to purchase. Customers with the second highest likelihood to purchase are exposed to placement ads and are given register coupons to help drive awareness. Customers who respond to a targeted campaign have a “much higher” Net Promoter Score than customers who have never seen one or are new to a targeted campaign.

Do these case studies convince you of the value of customer loyalty programs? Are you ready to create a customer loyalty program for your business?

 

50 amazing Amazon.com facts to inspire any company 0

Posted on June 26, 2017 by Rob Petersen

amazon.com facts

Amazon.com facts are especially relevant now. With Amazon making some of the most expensive company acquisitions in the most unlikely industries, there is lots of speculation as to why and what is really going on.

Often, the best way to predict what a company will do in the future is to examine what they’ve done in the past.

The largest retailers on the planet are WalMart and CVS. Amazon.com is third and closing. But unlike numbers one and two, Amazon has never manufactured a single, physical product; nor does it have a brick and mortar storefront.

Instead, Amazon focuses on selection, price and convenience to make customers’ lives easier and better. And every transaction occurs through a website. It’s been an incredible journey; one that still feels like it’s just getting started.

Here are 50 amazing Amazon.com facts to inspire any company.

HUMBLE BEGINNINGS

  1. CEO Jeff Bezos chose Amazon.com as the company name for two reasons: 1) Back then, website listing were often in alphabetical order and 2) to suggest scale (Amazon.com launched with the tagline, “Earth’s biggest book store), (Business Insider)
  2. The first book Amazon.com ever sold was from Bezos’ garage in July 1995. The book was Fluid Concepts & Creative Analogies: Computer Models of Fundamental Mechanisms of Thought. (Business Insider)
  3. Amazon’s logo shows a smile from A to Z in the name signifying “the company is willing to deliver everything to everyone, anywhere in the world.” (Business Insider)
  4. Bezos originally wanted to call his company Cadabra (as in ‘Abracadabra,’) but scrapped the idea after someone misheard the moniker as ‘cadaver.’  (Entrepreneur)
  5. Another early contender was Relentless.com, a web address that still redirects users to Amazon today. (Entrepreneur)
  6. As a cost-savings measure in its early days, Amazon constructed desks from cheap doors and sawed-off two-by-fours. The company still reportedly hands out a “Door Desk Award” to employees who help implement any particularly thrifty ideas. (Business Insider)
  7. In Amazon’s early days, when it sold only books, a bell would ring in the office every time someone made a purchase. (BuzzFeed)
  8. During Amazon’s first month in business, it received orders from customers in 50 US states and 45 countries across the world. (MSN)
  9. In the company’s first year, Bezos hired mobile billboards to drive by Barnes & Noble stores displaying the question ‘Can’t find that book you wanted?’ along with Amazon’s website address. (MSN)
  10. In 1997, Barnes & Noble sued Amazon, alleging that ‘Earth’s Largest Bookstore’ was a false claim. They eventually settled out of court with Amazon continuing to use their slogan. (MSN)
  11. Biographer Brad Stone describes Bezos’ laugh as “a cross between a mating elephant seal and a power tool.” (See here.)  (Entrepreneur)
  12. Bezos met his wife, MacKenzie, when he was working at a hedge fund in the nineties. “My office was next door to his, and all day long I listened to that fabulous laugh,” she told Vogue in 2013. “How could you not fall in love with that laugh?” (Entrepreneur)

COMPANY CULTURE

  1. Amazon.com employees spend two days every two years working at the customer service desk, even the CEO. This practice is to help all workers understand the customer service process. (Business Insider)
  2. PowerPoint presentations, for instance, are banned by the company. Instead, all meetings begin with a silent, 30-minute reading session about the topic at hand. This is to emphasize critical thinking over oversimplified stats. (Entrepreneur)
  3. Amazon encourages teamwork, but suggests that teams on each project are limited to the number of people who could theoretically be fed by two pizzas. (Entrepreneur)
  4. In 1998 the company was dramatically under-staffed for the Christmas holiday season rush. Amazon.com facts reported that every employee had to take a graveyard shift in the fulfillment centers to meet demand with many bringing their friends and family in to help too. (MSN)
  5. To ensure that doesn’t happen again, Amazon now hires a record amount of staff over the holiday season. This year it’s creating 100,000 seasonal positions across its US network of fulfillment and sorting centers. (MSN)
  6. Amazon launched a Pay to Quit program in 2014. If a worker hands in their resignation, they’ll get $3,000. By 2017, the amount is expected to be $5,000 (£3,320.42; $AU6,897.36). Less than 10% of the first wave of staffers offered the deal took them up on it. (MSN)
  7. A handful of former Amazon employees have gone on to found blockbuster companies of their own, including Jason Kilar, the founder of Hulu and Vessel, and Charlie Cheever, the creator of Quora. (Entrepreneur)

CUSTOMER VALUE

  1. Amazon serves 137 customers a week (Vault)
  2. Amazon’s unique users are 5X more valuable than eBay’s. Amazon’s average unique user brings in about $189 while eBay’s bring in just $39. (Business Insider)
  3. Amazon Kindle owners spend approximately $1,233 per year buying stuff from Amazon. (BarnRaisers)
  4. Amazon Prime members spend $1,340 annually. (BarnRaisers)
  5. One in every 10 Americans — 10.7% of the population, to be exact — has an Amazon Prime membership. (Motley Fool)
  6. When the same-day Prime service was launched in Manhattan, New York, the company claims one customer got their item – an Easy-Bake Oven – in a record 23 minutes. (MSN)
  7. Amazon’s fastest order delivered to date was a four-pack of Starbucks Vanilla Frappuccino to a customer in Miami. The delivery was made in under 10 minutes. (Motley Fool)
  8. Pause for one second. Amazon just shipped 35 items in that time frame. (Motley Fool)

CURRENT SIZE AND SCALE

  1. Amazon.com facts show it took almost seven years for Amazon to start making any real money. It was January 2002 before it reported its first profitable quarter, making a modest $5 million. (MSN)
  2. In late 2015 Amazon reported that it had more than 270 million active customer accounts worldwide, and was shipping to more than 75 countries. (MSN)
  3. Amazon is ranked #3 in Fortune Magazine’s World’s Most Admired Companies (Fortune)
  4. Amazon.com is the 10th most visited website in the world
  5. Amazon.com once went down for 49 minutes and the company missed nearly $5.7 million in sales. (Business Insider)
  6. Amazon owns the patent on any 1-Click online checkout process. Other companies wanting to offer one-click checkout must license the patent from Amazon. However, Amazon’s patent on the technology will disappear in 2017. (Motley Fool)
  7. Amazon licenses its 1-Click patent to Apple. (BuzzFeed)
  8. Amazon has more than 117,000 employees worldwide. (BuzzFeed)
  9. Amazon’s fulfillment center is Phoenix, Arizona, is 1.2 million square feet. It’s the equivalent of 28 football fields. (BuzzFeed)
  10. To ease the burden in retrieving products for warehouse workers, Amazon uses robots. (BuzzFeed)
  11. Amazon counts the CIA as one of its customers, after it secured a $600 million deal with the agency in 2013 for cloud computing storage, which is part of Amazon Web Services. (MSN)
  12. Google went on record claiming that Amazon is its biggest competitor in search advertising. (Motley Fool)
  13. On Cyber Monday 2014, Amazon.com facts show the company sold more than 300 items per second. (MSN)
  14. Forbes estimates the company’s net worth sits at $175.1 billion, (MSN)
  15. Amazon’s founder and CEO Jeff Bezos is now worth $59.4 billion, (MSN)

ACQUISITIONS

  1. In 2009, Amazon acquired Zappos for $1.2 billion. (Mashable)
  2. Amazon.com fact show the company owns 10% of North American E-Commerce, Office Depot, Staples, Apple, Dell and WalMart. (Business Insiders)
  3. In 2013, in an unexpected move, Bezos purchased The Washington Post for $250 million. (Entrepreneur)
  4. Though Amazon has recently posted eye-popping profits, the company has been mostly unprofitable throughout its seismic rise. While investors have grumbled about this fact for years, others continue to be encouraged by the company’s explosive sales and growing investments. (Entrepreneur)
  5. Amazon is so reliant on robots for order fulfillment that it purchased robotics and automation provider Kiva Systems for $775 million in 2012. As of early 2015, Amazon employed a fleet of 15,000 robots. (Motley Fool)
  6. Amazon is offering $13.7 billion for Whole Foods but other companies including WalMart, Target and Krogers are likely to make bids (CNN)
  7. Amazon is focused on providing more of the services that make customer’s lives easier and better. It focuses on selection, price and convenience (Forbes)
  8. Amazon didn’t invent many of the services it offers today, it simply makes services easier and better. (Forbes)

When a company is able to make its customers’ lives easier and better by focusing on selection, price and convenience, there is no end to what it can accomplish. Only the next big thing that will delight them.

Do these Amazon.com facts help you to see where Amazon is going? Do these Amazon.com facts inspire you about innovations possible for your company?

Facebook Ads vs Google Adwords. 7 key criteria to decide 0

Posted on June 12, 2017 by Rob Petersen

facebook ads vs google adwords

Facebook Ads vs Google Adwords. Consider these facts.

  • Digital ad revenue in the U.S. grew by more than 20% last year to a record $72.5 billion. (IAB)
  • Google and Facebook accounted for almost 100% of all the growth in U.S. digital ad revenue last year. (IAB)
  • Google and Facebook are predicted to make $106 billion from advertising this year, almost half the world’s digital ad spend. (eMarketer)

The facts state, if you do any digital advertising, you likely to be using Facebook Ads or Google Adwords.

Should you be using one? Or the other? Or both? Which one and why?

Facebook Ads vs Google Adwords. Here are 7 key criteria to decide.

  1. AUDIENCE: SEARCHERS OR FRIENDS AND FANS? Google now processes over 40,000 search queries every second on average. This translates to over 3.5 billion searches per day and 1.2 trillion searches per year.  For Facebook, 1.28 billion people log on daily, an 18% increase year over year. Both numbers are huge. But the Google user is looking for something specific. Facebook’s audience is looking to find out what others, mostly people they know, are doing and saying.
  2. MESSAGE: NEEDS OR INTERESTS? With every Google search query, someone is looking for something to meet a need. Google is trying to answer that question, based on keywords for the product or service that meets that needs. And the advertiser with the most competitive bid for that keyword. On Facebook, people share almost every conceivable detail of their lives. They consume content that aligns with a huge range of personal interests, beliefs, ideologies, and values. And Facebook knows better than anyone, what are their interests and value to best connect with a business’ solution.
  3. BUDGET: KEYWORDS OR CAMPAIGNS? Facebook Ads vs Google Adwords. Both are very affordable because both are based on Cost Per Clicks (CPC) set by a predetermined budget of your choice. The Google budget is based on keywords and the bid for those keywords. With any ad buy, Google lets you know the bid for a keyword that gets the best ad position. Although costs are fixed and controllable, there are a few variable to manage to get the best value for your ad investment and not overpay. Facebook very simply lets you know what you will spend by day for the predetermined budget on your choice. However, Facebook asks you to first answer questions about what you are trying to do. Is it create awareness, drive conversions, generate Likes? There is less risk of overspending but there is some specific direction that has to be decided first.
  4. MEASUREMENTS: MEDIA OR SOCIAL? Measurements are different so there is a learning curve. To measure effectiveness, Google Adwords uses more traditional digital media measurements like: 1) Impressions, 2) Clicks, 3) Click Thru Rate and 4) Conversions. Facebook uses metrics based on social interactions like: 1) Reach, 2) Engagement, 3) Page Views and 4) Likes. Although both measure Conversions, Google Adwords allows for multiple Conversions.
  5. TYPE OF BUSINESS: B2C OR  B2B? Facebook ads vs Google Adwords. Facebook is more consumer-oriented because people log-in frequently to see what their friends are doing. While they may log-in from work so business interests are also on their mind, Facebook is inherently more B2C. Google is both B2C and B2B because it is based on keywords that represent a need that either a B2C or B2B target is searching.
  6. BUYING CYCLE: TOP OF FUNNEL OR BOTTOM OF FUNNEL: The stages of the Purchase Funnel are: 1) Awareness, 2) Opinion, 3) Consideration, 4) Preference and 5) Purchase. Because Facebook is more interest-oriented, it is more of a top of the funnel advertising solution. Google Adwords, being more needs-based, it s more bottom of the funnel.
  7. ROI: RETURN ON AD INVESTMENT: With either Facebook ads vs Google Adwords, the tracking is established to track your visitors from their initial contact with your ad; whether they went to the desired destination you drive them and take the action you want. You should know how many who take that actions result in a purchase. If you do, you will know the ROI of your ad investment with either Facebook ads or Google Adwords.

Facebook ad vs Google Adwords. Do these criteria help you decide which is better suited for your needs. Do you need help with your Facebook or Google ad buy?

 

16 ways to ramp up SEO search rankings in 20 days (Infographic) 0

Posted on June 05, 2017 by Rob Petersen

seo search rankings

SEO search rankings refer to a website’s positions on search engine results pages (SERP). There are various ranking factors that influence whether a website appears higher.

To increase SEO search ranking with a plan, SEO Reseller has quantified and qualified it with specific steps and a plan. And they have created an infographic to be your blueprint to make sure you know what to do. With keyword research, you’re ready to get to work.

Here are 16 ways to ramp up your SEO search rankings in 20 days in a brief summary and then the infographic.

DAY 1 TO 3: SET UP YOUR SITE FOR SEO SEARCH RANKING

  • 79% of customers are less likely to repeat from a site with low speed performance
  • Speed up your site by removing unnecessary plugins, JavaScript and templates (CSS)
  • Optimize for mobile-friendliness with a responsive design
  • Implement Google AMP (Accelerate Mobile Pages) to deliver a better experience to users

DAY 4 TO 8: FOCUS ON CONTENT DEVELOPMENT

  • 89% of B2B marketing use content marketing as part of their strategies
  • Find relevant keywords, use visuals, videos and infographics and create clear calls to action
  • Implement Schema Markup, code (semantic vocabulary) that you put on your website to help the search engines return more informative results for users; choose a specific schema that best describes your business

DAY 9 TO 11: OPTIMIZE LOCAL LISTINGS

  • Google local listings are taking up more space than organic
  • Optimize your Google My Business
  • Optimize your Yahoo Local
  • Optimize your Bing Places for Business
  • Optimize your Yelp and manta profiles
  • Use Localeze to insure business information consistency

DAY 12 TO 14: GET REVIEWS

  • 68% of customers are likely to trust a business if they read a positive review about it
  • Get users to review you
  • Get vouched by local institutions

DAY 15 TO 20: GO SOCIAL AND MOBILE

  • Get on social media networks
  • Optimize for mobile-friendliness
  • Tap into your YouTube traffic

Below is the infographic so you have a visual reminder.

Do these ways to ramp up SEO search rankings make sense to you? Are you ready to get started? Do you need help with your SEO search rank?

SEO search rankings infographic

31 facts on winning new business pitches for ad agencies 0

Posted on May 22, 2017 by Rob Petersen

winning new business pitches

Winning new business pitches is a key barometers of success for any ad agency.

On Google, if you search the phrase, how to win an ad agency pitch, you’ll find 11.7 million entries. That’s means a good number of people are looking for the answer to this question.

In the titles of these entries, you’ll find words such as “rules,” “playbook,” “guide,” “tips” and “tactics.” In other words, someone’s else opinion.

This article doesn’t pretend to have that wisdom. Instead, here are 31 facts on winning new business pitches broken out into categories so you know by the numbers;

  • What are chances for success
  • What works against you
  • What works.

WHAT ARE CHANCES FOR SUCCESS

  1. 96% of ad agencies have participated in a new business pitch. (Provoke Insights Study)
  2. 49% are general ad agencies and 23% are digital, 9% are brand consultancies and 8% are media. (Provoke Insights Study)
  3. Average closing rate in the U.S. is 43%. (Cubeyou)
  4. New business pitches cost ad agencies between $15,000 and $20,000 to prepare. (Cubeyou)
  5. The average amount of work that goes into each proposal is 150 hours. (Cubeyou)
  6. Small to mid-sized receive 10-12 requests for proposals (RFPs) a year. (Cubeyou)
  7. 299,000 Google results for “best advertising blogs.” (Peter Levitan)

WHAT WORKS AGAINST YOU

  1. 80% of agencies say the New Business Director lasted less than 2 years. (Smart Insights)
  2. 66% have no methodology or business development plan for winning new business pitches. (Smart Insights)
  3. 53% of clients investigated 6 or more agencies in addition to your agency for the preliminary review. (McKinsey)
  4. 48% of clients said their previous agency relationship lasted less than 2 years. (RSW/US)
  5. 47% of ad agency professionals are dissatisfied with their agency’s current approach to winning new business ptiches. Unrealistic timelines and long hours are the primary reasons. (Sanders Consulting Group)
  6. Average Client-Agency Relationship has shrunk from 7.2 to 2.8 years. (Media Post)
  7. Average CMO tenure has decreased from 48 month to 44 months. (Spencer Stuart)
  8. 33% of the CMO’s in the study are new to their job as of 2015, the largest percentage since 2004 (Spencer Stuart)
  9. Clients typically invite 3 agencies to pitch when there is a full-blown review. (RSW/US)
  10. Most clients take 2-3 months before a final appointment is made. (HubSpot)

WHAT WORKS

  1. The best marketing and advertising agencies in US close on average 85% of the pitches and participate in 6 times more than the other agencies. (Cubeyou)
  2. Creativity and Strategic planning represent more than half of the total cost. (Cubeyou)
  3. To improve strategic planning, agencies say important areas to apply resources are: 57% against the target audience, 53% for competitive intelligence, 53% for industry trends, 47% for industry intelligence and 42% for social listening. (Provoke Insights Study)
  4. 96% of executives said “chemistry” was the key factor. (Launch Engineering)
  5. 82% of executives select an agency who they believe “differentiated” themselves from other agencies. (Launch Engineering)
  6. 61% of executives said the agencies they’ve selected had a confident, articulate team. (Launch Engineering)
  7. If you close 60% of your new business pitches, your new business effort will be profitable. (Cubeyou)
  8. 50% of executives suggested agencies need to develop “a new business culture.” (Launch Engineering)
  9. Clients generally enjoy the process of looking for a new agency, with 41% of respondents saying they either “look forward to it” or “enjoy it.” (RSW/US)
  10. 41% are not happy with their current agency’s strategy and thinking; 40% cite lack of pro-activity; 39% are not happy with creative and 33% are looking for new ideas. (Holmes Report)
  11. 39% of executives said passion for the client’s business, demonstrated by a “seamless link between strategy & creative.” (Launch Engineering)
  12. Only 33% of executives said brilliant creative was enough to win the pitch by itself. (Launch Engineering)
  13. 23 of agency appointment now involve a procurement specialist, so don’t ignore them. (RSW/US)
  14. 22% of clients use a roster system, suggesting that most clients use other means to learn about the strength and value of agencies in consideration. (RSW/US)

Do this facts on winning new business pitches make sense to you? Do facts serve as a better guide than rules and playbooks? Do need help winning new business pitches or selecting the right agency for your business?

  • About

    BarnRaisers builds brands with proven relationship principles and ROI. We are a full service digital marketing agency. Our expertise is strategy, search and data-driven results.



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