The ability to demonstrate the value they create for clients increases the agency’s resilience in 2020 and the positive outlook for the next year.
No one was fully prepared for what lies ahead in 2020, including digital marketing agencies. When the deal came in the spring, 66% of marketing agencies said total sales were lower. CallRail’s call data report shows a similar trend, with marketing call and announcement volume 29% lower than previous COVID levels.
As 2021 faces economic uncertainty, digital marketing leaders say their agencies have been remarkably resilient, according to a CallRail survey of 167 global marketing leaders using their services. The results show that most agencies will end 2020 with higher annual revenues than in 2019.
Overall, the agency’s leaders are satisfied, as are their talent and experience, customer service, and positioning. Most agencies have shown a lot of confidence in her when asked about her ability to achieve important goals, such as acquiring new clients and closing new deals.
While CallRail’s Outlook 2021 report delves into the agency’s business practices, it highlights these interesting aspects of the study. It also contains the agency partners’ perspective on why and how 2021 will be a strong year for digital marketing agencies.
The agencies’ financial perspectives for 2021 are good
In the CallRail survey, 88% of agencies said they were satisfied or very satisfied with the financial health of their agencies. Only 3% were extremely dissatisfied. Consistent with these findings, most agencies expect to exceed 2019 revenue by the end of 2020.
As a result of switching to digital channels during the pandemic, Kyle Shurtz, Avalaunch Media’s vice president of action, saw an increase in sales. “Because we focus solely on online advertising, we are spending more business as people move from online to online. We expect 2021 to be much more egalitarian. Our goal is to grow by around 20% year-on-year.”.
Even for agencies that experienced a drop in revenue in the spring or whose business models are more mixed between online and offline advertising, there was still a positive line in 2020 that forced them to look at their business and make decisions. Get something else. they wouldn’t. to take.
‘We have become more profitable because our indirect costs have dropped significantly. But we will never lose our offices or subscriptions. We would have lowered your COVID, “Randolph said.
Dale Powell, CEO of Atomic Marketing, agrees. “We had a lot of time to think about the direction of our business and the type of client we wanted to work with,” said Powell. “So we make informed decisions to raise prices and take further steps to say ‘this is our price’ to avoid wasting time.” Powell also expects the agency’s revenues to be higher than last year.
Agencies deliver strategic value to clients
Being seen as a strategic partner is one of the most important ways agencies can increase their value for clients and in this section, most agencies think they do it right. According to 67% of agencies, the main reason clients choose their agency is because they are strong strategic partners.
The sustainability of most client banks is another indication that customers believe branches offer enough value to continue using their services. Long-term relationships of two years or more were common in 69% of agencies. Only 4% said the customer relationship lasts less than a year.
Challenges remain, but agencies are confident
Despite the customer relationship and a solid financial basis, agencies remain the challenge. The two largest listed agencies found new clients (48%) and increased the turnover of existing clients (42%).
While agencies believe it has become more difficult to find new clients (53%), retain existing clients (52%), and increase existing revenues (62%), they are also confident that they can meet the challenges.
The vast majority of agencies (74%) said they were confident that they could generate new leads, 75% that they could attract new customers and 59% that they could increase sales to existing customers.
Despite the challenges, what leads to a high degree of trust? It turns out to be a combination of employment strategies that help expand the agency’s operations and show clients that they value the agency’s services.
For example, Avalaunch Media thought the company could grow because it has a solid referral program. “We are confident that we can grow and continue our business. We have a very strong partnership program which is a good thing for us,” said Shurtz. “We also have a solid employee referral program where they receive a lifetime commission for each referral, which is why we get a lot of offers from internal employees.”
Barbauld also shared how he helped clients transform their businesses. For example, it helped customers make strategic decisions to create ads, making some of the worst months in their business the best ever.
“Our customer meetings in July were very difficult and pessimistic and we had all kinds of brainstorming sessions on how to interact with customers without giving up. But in September or October, our customers said, “Wow, no. Believe it or not,” Randolph said.
As agencies look forward to 2021, there is every reason to believe they will continue to deliver business growth, revenue growth, and overall health. In order to generate new customers and increase sales to existing customers, achieving these goals and results must remain a priority. As a result, call tracking, form tracking, and other reporting and analysis software remain essential tools.
The uncertainty for 2021 is still due to COVID-19, but on the other side of 2020, the grass looks greener. And there appears to be an agreement between the agencies that are unlikely to be repeated, even if there will be more blockages.
“My forecast for 2021 is generally much more positive than it was four months ago,” said Randolph. “I am cautiously optimistic.”