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Especially in today’s economy, new business is not a numbers game By Tim Williams
How many times have you heard the tired phrase, “New business is a numbers game.” As the theory goes, you need a lot of times at bat (meaning you need to take a lot of swings) in order to hit the occasional home run. This school of business development believes that agencies need to pursue and pitch a certain number of new business opportunities in order to win their fair share.
It’s a logical argument. Only it’s wrong.
It’s precisely because agencies view new business as a numbers game that the industry has created and perpetuated the cumbersome and often ineffective “agency review” process. Agencies scramble to respond to as many RFPs as they possibly can, knowing that they will make the cut on only so many, and will eventually win only a small percentage of the reviews in which they are invited to participate.
Creating an unlevel playing field
The goal of most agency reviews is to “level the playing field” – a process designed to line up and compare agencies on a set of common characteristics. Your job as an agency executive is to unlevel the playing field. Rather than showing how well you compare, you should go out of your way to show how you don’t compare.
You’re not playing the lottery here. Instead of being at the mercy of the law of averages, you can dramatically improve your chances of winning with a relevant and differentiated positioning.
Playing in a game you’re favored to win
The firms that have been able to step out of the agency review rat race are those that have a focused business strategy and know precisely who their target is. The first essential question of any business is “Who is your customer?” Many agencies would answer this by saying “everybody.” For the undifferentiated “full-service integrated marketing communications firm” every company with money is a prospect. If “everybody” really is your target, you might as well go ahead and play the numbers game.
But how much better would it be to spend your time and resources on prospects that actually want you for what you do best? Would your new business wins go up? The most focused agencies have the best new business batting averages because they are playing in a game they are favored to win.
The answer is not trying harder
Instead of investing the necessary mental energy to actually position themselves uniquely in the marketplace, some agencies try to improve the law of averages through cosmetics. A more finely-produced RFP response. A more decked-out presentation room. More blown-out spec creative.
But deep down inside agency professionals know this isn't really the answer. Having a clear idea of what you’re selling is the answer.
Trade the time and money you spend peddling a largely commoditized product (the “full-service agency”) and invest it instead in answering the question “Who are the best prospects for what we do best?” The answer can’t be everyone. As Bill Bernbach said:
“If you stand for something, you will find some people for you and some people against you. If you stand for nothing, you will find nobody against you, but nobody for you.”
So stop playing the numbers game and apply your agency’s considerable creativity to the brand that matters most: your own.
It’s a logical argument. Only it’s wrong.
It’s precisely because agencies view new business as a numbers game that the industry has created and perpetuated the cumbersome and often ineffective “agency review” process. Agencies scramble to respond to as many RFPs as they possibly can, knowing that they will make the cut on only so many, and will eventually win only a small percentage of the reviews in which they are invited to participate.
Creating an unlevel playing field
The goal of most agency reviews is to “level the playing field” – a process designed to line up and compare agencies on a set of common characteristics. Your job as an agency executive is to unlevel the playing field. Rather than showing how well you compare, you should go out of your way to show how you don’t compare.
You’re not playing the lottery here. Instead of being at the mercy of the law of averages, you can dramatically improve your chances of winning with a relevant and differentiated positioning.
Playing in a game you’re favored to win
The firms that have been able to step out of the agency review rat race are those that have a focused business strategy and know precisely who their target is. The first essential question of any business is “Who is your customer?” Many agencies would answer this by saying “everybody.” For the undifferentiated “full-service integrated marketing communications firm” every company with money is a prospect. If “everybody” really is your target, you might as well go ahead and play the numbers game.
But how much better would it be to spend your time and resources on prospects that actually want you for what you do best? Would your new business wins go up? The most focused agencies have the best new business batting averages because they are playing in a game they are favored to win.
The answer is not trying harder
Instead of investing the necessary mental energy to actually position themselves uniquely in the marketplace, some agencies try to improve the law of averages through cosmetics. A more finely-produced RFP response. A more decked-out presentation room. More blown-out spec creative.
But deep down inside agency professionals know this isn't really the answer. Having a clear idea of what you’re selling is the answer.
Trade the time and money you spend peddling a largely commoditized product (the “full-service agency”) and invest it instead in answering the question “Who are the best prospects for what we do best?” The answer can’t be everyone. As Bill Bernbach said:
“If you stand for something, you will find some people for you and some people against you. If you stand for nothing, you will find nobody against you, but nobody for you.”
So stop playing the numbers game and apply your agency’s considerable creativity to the brand that matters most: your own.
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