What impact will Coronavirus have on agency new business?
Well, much has changed in the last few days. A week ago, I admit, I was a touch blasé. In part, because whilst travelling from the Midlands to Manchester you wouldn’t have known we were on the cusp of a pandemic. People were going about their normal business. Albeit, with hand sanitiser in the pocket and a slightly wary look at anybody coughing on the train.
But things have moved quickly. A week later, we are virtually in lockdown. My family and I are self-isolating. My daughter has a cough. It might be Coronavirus. We don’t know. But like the vast majority of the nation, we are doing our bit to limit its spread.
These truly are strange and unprecedented times. And unfortunately, agencies are going to take a hit over the coming months. We all will. Am I worried? Of course. Not just for my business. But for my clients, colleagues and friends in the industry too.
So, if this post is nothing more than a cathartic exercise for my own sanity, so be it. But I also hope agency leaders and business developers can take something away from my slightly random brain dump.
In no particular order then, a few predictions on how I think this godawful Coronavirus will impact agency new business, good and bad. Where I’ve managed to find some clarity of thought, there’s an idea or two thrown in to help you through:
Let’s start with the obvious. The number of new business opportunities will decrease significantly in the coming months, especially in those sectors hit hardest such as travel, tourism, events and leisure. So, expect less movement between agencies. If any of your clients have been thinking about a change of agency it will probably go on the backburner for a while. You might have just earned yourself time to rebuild trust and demonstrate why they chose you in the first place. Use the time wisely.
On the flip side, we might see a spate of panic buying from businesses looking for a quick fix from agencies. Tread carefully. Do your due diligence before committing your time and resource.
With fewer opportunities to go around, new business targets might need to be revised down for a lot of agencies. But be careful this is not a self-fulfilling prophecy. It would be prudent however to plan for lower than expected new business revenue. What would the implications be of missing your new business target by 20%, for example, not just on your current financial year but the next one too? Plan for a number of different scenarios so you know exactly what to do if they arise.
Pipelines have no doubt taken a hit in the last few weeks. Projects are being put on hold, other priorities coming to the fore. That project you thought was a banker might not be anymore. Opportunities will need to be re-qualified. This is probably going to mean some difficult conversations with prospects. Do so with grace and empathy. Your new business target is not their concern. Once any changes to budget and timescales have been established, be brutal with your ‘% win score’. This is not the time to overegg things. Accurate forecasting is vital at the best of times. Even more so now. If an opportunity is on hold for the foreseeable future, don’t cling on to it in your pipeline report.
The pitch process might just get the kick up the behind it needs. With social distancing and remote working, face to face meetings will be the exception, not the norm. Agencies will need to get more creative in how they showcase their thinking, ideas, people and culture. Don’t just revert to sending faceless proposals by email. People are at home, probably bored by their own company. Those agencies that can bring a bit of joy or entertainment into the home office when sharing their ideas and solutions will stand out.
Events are being cancelled left, right and centre (mine, included). Assume that anything currently scheduled for 2020 will follow suit. Public-speaking gigs? Forget it. But that doesn’t mean the deck you’ve been sweating over should go to waste. I expect to see more agencies to host webinars and video conferences to showcase their latest research and thinking.
In terms of other lead generation activity, a lot of agencies will batten down the hatches and stop spending. Marketing is always the first thing to get cut and I wouldn’t be the first person to say this is a mistake. There are plenty of ways in which money can’t be spent right now, such as events. But rather than just cut those budgets, make every effort to redistribute to other activities. Yes, tighten the belt where it makes sense but loosen it in the other areas if you can. You are likely to need to diversify your lead generation efforts, possibly doing things that are outside your comfort zone. This is no bad thing in the long run.
If you are anything like me, life probably feels like it has come to a grinding halt. But of course, life goes on. People are still reading emails and messing about on LinkedIn. If anything, this will increase in the coming months. Isolation leads to boredom. Boredom hits productivity as we become more easily distracted by alerts, pop-ups and pings. How can you take advantage (not the right way of phrasing it, but you know what I mean) of people being at home, with (potentially) more time for reading, learning and self-development? All those content ideas and new formats you’ve been meaning to try, this could be the opportune time to educate and inspire prospects with video, webinars, podcasts and the like.
As a minor thought, you could, of course, share stuff by email. But people working from home will welcome something through their letterbox to break the monotony. Revisit that direct mail campaign you’ve been putting off. Get creative to get cut-through.
In line with this, if there is less client work is to do, can you turn your team to marketing activity for the agency i.e. content creation? Maybe we’ll see more of the new business burden shared across the agency with a ‘we are all in this together’ mentality.
I expect to see greater collaboration between agencies. Your partner network is more important than ever. Speak to partners regularly. Share experiences, ideas and opportunities. This is not the time for Donald Trump-style isolationism.
Downward pressure on rates is inevitable as clients look to rein in costs. Your flexibility will be tested to the maximum in a lot of cases. Agencies make it their business to know their clients’ business. But this isn’t always reciprocated. I’d love to see a bit more understanding and empathy flowing back in the other direction; an appreciation that if you drive rates to rock bottom, the damage done to the agency is far greater than the short-term gain in cost-saving. I expect to see more creative means of pricing with agencies and clients collaborating as actual partners to come out the other side. Together. And stronger.
As a final point. Whilst there is a lot outside of your control right now, there is one thing you can control: your actions. Now is not the time to do nothing, keep your fingers crossed and hope for the best. Focus on action. Have a plan. Review weekly. make stuff happen. It’s the only way.
That’s as far as I’ve got in my thinking. Rather like the pace of change we’ve seen in the last week, I’m sure a whole load of other stuff will materialise in my brain over the coming weeks. I’ll keep you posted.
But, what about you? How are you doing? What impact have you experienced so far?
