Results of a study have come out called "Building trust and revenue with existing clients".The Jan 2023 study was US-based so if you have US clients, you’ll find this compelling.But even if you don’t, hopefully it’ll make you think about your client’s budget.
The key findings
One of the key findings was “59% of respondents say their organisation has increased an agency’s budget allocation mid-year”The top reasons given were they:
a) Saw success on a particular marketing activity and chose to spend more on it (36%)
b) Launched new products or services (33%)
c) Identified an opportunity they couldn’t pass up that required more funds (31%).
Listen to the results and study breakdown (512 marketing decision makers) on Drew McLellan’s Agency Management Institute’s podcast.Additional findings include:
- 2 in 3 set a fixed amount when establishing a budget for working with agencies
- 2 in 3 describe their company’s approach to its annual budget as "evaluating results and opportunities regularly and adjusting the budget accordingly".
- Only 10% say their budget is determined annually and cannot be changed.
What does this means for you?
What does this mean for account managers responsible for account growth?:Saw success on a particular marketing activity and elected to spend more on it (36%)What this means for you:Are any campaigns / services working well for your clients right now? Is there an opportunity for you to suggest the client invests more to accelerate the success? E.g. you are running paid social ads and a particular campaign has done well, can you suggest new executional ideas with the same theme? Launched new products or services (33%)What this means for you: Are you aware of your client’s new product pipeline? E.g. you helped them with their e-commerce strategy and web design, can you propose new ideas for incorporating their new SKU/product/service into their site? Identified an opportunity they couldn’t pass up that required more funds (31%)What this means for you:Clients are flexible with their budget and can spend more money with you if your additional ideas and services are in alignment with their business goals. So do you understand what their yearly goals and strategic imperatives are? If not, can you find that out? Can you propose new ideas to help?
