The Secrets to Agency Growth: Differentiation

While I may seem like a broken record, the importance of agency differentiation and positioning cannot be overstated in the context of successful business development. Agency differentiation and positioning are the secrets to agency growth. In fact, the differentiation and positioning of any product or service, any choice whatsoever, is the most significant determinant of being the winner. It is a fundamental truth. Differentiate your agency and attract clients. Yet, it's one of the most elusive and challenging things for agencies and most other businesses to accomplish.

Common challenges agencies face

Having worked at and with agencies for over two decades, I've had this discussion hundreds of times. Every agency is different. Every agency can find its differences. Some may need to change or reposition how they use their differences to be more competitive, others to be believable or relevant. Some get it, while others dismiss it. Regardless of individual opinion, everyone considers the differences between any two choices they are considering. If an agency doesn't define and position its differences, its competitors will, the market will, and the buyer will do it for them. But with the right approach, these differences can be the key to your agency's success. As I said, differentiate your agency and attract clients.

I've heard many agency leaders admit that they don't try to define their differences because they believe there is no difference. They say they do the same thing, the same way, with the same outcomes as their competitors. That's like saying cars all do the same thing, the same way, and all get you to your destination, regardless of other factors. Agencies, more than most, should know there are differences. After all, car companies spend billions on agencies to exploit the differences.

Can you compare cars with agencies? Regardless of the product or service, the point holds true. If there isn't any distinguishable difference in the service, then there may be in the delivery, the price, the customer service, the reliability, the people, etc. It's all in the proper positioning.

Some leaders will admit their agency has differences, but whatever they are, they aren't competitive, relevant, or meaningful differences. There may be something to that. It may require a different perspective or reframing the way of looking at them to find meaning, competitiveness, or attraction. Others have said they are no more than hype or fluff unless the differences can be trademarked, patented, or unique. Sadly, some agencies hang their competitiveness on hype or fluff, but that's the subject of another post. I could go on and on about these conversations, but your time is valuable.

I typically engage with agencies as a fractional BD leader. I get paid to help find and nurture new clients for the agency. I know that to be successful, the agency has to stand out and stand apart from the other agency choices a marketer has; otherwise, why would they pay attention? What I often find is a lack of meaningful differentiation and competitive positioning. It was usually done years ago and looks outdated or lacks a clear sense of the audience, the market, and the agency, better known as in their bubble.

They contact me to fix the symptoms without realizing the cause. Their leads have slowed, referrals have dried up, and RFPs are nowhere to be found. Some say it's the economy or trepidation and will self-correct in time. Meanwhile, that outdated positioning gets even more dated. Others freely admit they are outdated or poorly positioned and blame it on being too busy to do anything about it. I had one agency owner tell me her team realized it had been five years since they did a repositioning effort and three more years after that because the senior leaders couldn't agree on the new direction. That's a lot of lost business.

I've had agency owners tell me their positioning is excellent, it's fresh, and the agency loves it. They just need to get in front of the marketing decision-maker, and they'll win. One in particular was a real mess. I looked at his positioning and differentiation as communicated on the website, pitch materials, and social media. I researched competitive agencies in the same category because he told me he had no competitors. I researched what marketers at the companies they target are saying in public places. There were obvious disconnects. I told the owner I could appreciate their work, but it wouldn't help attract new prospects. IYKYK.

Another agency owner was in a big hurry. He said he didn't have time to go through a repositioning process or explore his differentiation options. He needed new clients and fast. He said we could circle back to do everything right once he signed several new clients. I asked him if his current positioning was attracting any new prospects. He said NO! That's why I called you. I may be good, but I can't perform miracles. I replied that if you want to grow, first differentiate your agency, and you'll attract clients.

I know agencies are always in a hurry. For the most part, an agency doesn't call me unless there is a problem they have been trying to solve on their own. When they decide they need outside help, the pressure is on. I have refined my methodologies to streamline the differentiating and positioning process. Only twice has an agency contacted me while successfully crushing new business goals. Each wanted to build a new business engine the right way while they had the luxury of time so they would be prepared to turn it up when the leads slowed.

Good advice

My best advice, which may sound self-serving, is don't attempt a differentiation and positioning process yourself. You should be involved but run it independently of the agency and outside your bubble. I've seen the results of many DIY approaches, which is often why I'm hired to fix them. I know how much work goes into it and its impact on existing client work and relationships, employee morale, resources, and potential politics. Don't try this at home. Many agencies don't fully consider the implications of the process. For reference, I'll outline the expedited process and the timing I follow. Other outside resources can take longer and are more expensive.

A structured approach to differentiation and positioning

When I start an agency engagement like this, I develop a three-dimensional understanding of the environment in which the agency must successfully gain new leads and clients.

• The agency
• Competitive set
• Target audience

I begin with a deep dive into everything I can get from the agency that will help me understand who the agency is, what they do, how they express themselves, recent new business planning documents, and any other information to understand them better. I comb through this content to synthesize their essence from an objective, unbiased perspective, much like a marketer would when initially researching new agencies. I report my findings, discuss, adjust, and develop a draft SWOT matrix. I accomplish as much of this as homework before the process officially kicks off.

I then researched similar agencies to develop a peer or competitive set like a marketer might do. I base the criteria on similar size, services, organizational structure, and other factors to help compare and contrast. I'm especially interested in agencies that are growing according to LinkedIn's total employee count from 2022 to current. I also favor agencies that win industry awards and acknowledgment, such as Ad Age Agency of the Year, Inc. Fastest Growing Companies, Adweek Awards, and others that indicate vitality, success, and notoriety. I find at least ten to give a broad view of what a marketer might see. It's not scientific but generally accepted as meaningful.

I analyze these agencies on several factors, including service offerings, positioning, differentiation, processes, clients, and more. I compare and contrast them to my client agency and report the findings. We discuss, adjust, add, or subtract agencies, ensuring that my client feels the selection is a legitimate group of peers. I put the agencies in a large matrix to compare various sorts and weightings. I then add the conclusions to the draft SWOT.

I then research senior marketing executives from the companies that my client targets. I look for any recent publicly available information, such as industry events, panels, interviews, PR, social posts, podcasts, and other content that indicates or infers their biggest challenges. I want to know what keeps them up at night, what they think about agencies or the industry, marketing campaign strategies, awards, and any other information that might help guide how my agency should position itself for maximum appeal. I compile, codify, and rank the information, report the findings to my client, and discuss, amend, and add to the SWOT.

All this mostly happens in the first 30 days so that I have all the data I need to develop a GTM strategy and plan. In the next 30 days, I do the following.

• Differentiate the agency based on authentic and genuine qualities that set them apart from the competition and resonate with their ICP.
• Reposition the agency to stand out in their market and have greater appeal to their ICP's needs.
• Better define their higher probability ICP, identify their best market opportunity, and augment or build prospect lists that better fit this enhanced targeting.
• Make recommendations on where and how to revise their market presence, website changes, sales messaging, content, presentations, pitch decks, and any other places where a marketer might consume their content or see their message.
• Develop a content calendar to distribute the revised messaging through all available channels, aiming to grow awareness and understanding of the agency among its best audiences.
• Craft a prospecting plan that I execute to build momentum and optimize for maximum impact.
• Compile initial prospect lists and identify top prospects for more focused or targeted efforts.
• Start outreach.

I aim to conclude this upfront process and get it into the market within 60 days, but that depends as much on the agency as it does on me. My recommendations can significantly impact the agency, and I acknowledge that it will be a work in progress, always in beta. My approach is to build the ship as we sail. I develop a minimum viable platform to test in real time. This way, I can start prospecting sooner and use early results to improve and optimize the overall plan.

When needed,  I recommend ways to incorporate the new positioning into case studies, thought leadership, PR, RFP and RFI responses, pitch strategies, presentations, and other applications to ensure consistency and maximum impact.

An ongoing, adaptive approach to differentiation

The point here is that when I talk with agency leaders about the need for differentiation and positioning, they often see it as a discreet task that needs to be completed and left alone for another five to ten years. However, this approach is no longer viable in today's rapidly changing marketplace. Agencies must view differentiation and positioning as a fluid, evolving process that should be constantly tuned and shaped to the leading edge of an ever-evolving marketplace. As change accelerates, agencies must keep pace with it or risk waking up far behind.

Differentiation and positioning are comprehensive undertakings that impact virtually everything about the agency and should continually evolve with the market and the marketers. It's a significant undertaking if left for years unchanged. Agencies must shift their approach to ongoing tweaks as culture, consumer behavior, brands, and tastemakers keep the pace of change zooming. Hopefully, the above steps illustrate why agencies should not DIY and shouldn’t leave it alone for five to ten years. Differentiate your agency and attract clients.

I'm always up for the conversation if you want to discuss differentiation and positioning more. It should always be the first topic of any business development discussion. The ad agency world has always been dynamic and challenging. But it's also filled with passionate, creative people who know how to solve problems—these problems. By focusing on your unique strengths, continuously refining your approach, and staying persistent, you can overcome these hurdles and set your agency on a path to sustained growth and success.

Happy Prospecting! Agency differentiation and positioning are the secrets to new business success, but few do it well. I always enjoy chatting about how I do it and how it helps. If you need help, schedule a call. While you are at it, let's connect on LinkedIn. Don't miss more content like this. Sign up for my New Business newsletter.

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