By Deborah Kurfiss, Umbrella Content Marketing Director on Feb 17, 2023
You could have the best digital marketing agency in the area and still be less profitable than you could be. This is true with any business. Increasing your digital marketing agency profits takes more than just being good at your job. It takes solid strategy and processes to show good profits year after year. Here 7 tips.
You will never know how profitable you can be if you don’t track time. It doesn’t matter that you may not be charging clients by the hour. You need to know how long each task takes and how long projects take. Only then can you determine whether or not a project was worth the effort. Tracking time is the first step in determining where you or your staff are wasting time. Forgive us for repeating the old saying, “Time is money.”
Before you offer services to your clients, you need to know how much it costs you to deliver. How else will you know how much to charge or even if offering the service is worthwhile?
For every service you offer, determine its costs. Also determine the skill set level necessary to deliver the service. Can all or part of the work be done by a junior level employee who is paid less than your top talent?
To determine costs, you must carefully track each project.
Consider the tools you are using. Technology and services may cost you upfront, but they can end up saving your money by saving you time. They may also provide a higher degree of accuracy.
You may have a great business and please your clients with the services you offer. Don’t sit on your laurels. There is always room for improvement and more ways to increase marketing agency profits. Keep up on the latest technologies and latest through trends. Are there additional features or secondary services you could add to your current projects? Remember, your clients come to you because they want marketing help. You are helping them by providing additional services that make them more profitable for build their brand.
You probably have an area of expertise, a focus for your agency. Consider adding digital marketing services your clients need. For example, if you primarily provide SEO services, consider adding website design and development or Google and Facetime advertising.
This is where white label digital marketing services make sense. You can continue to focus on your area of expertise, but don’t lose business by sending your client’s off to another agency for additional marketing services. Offering more services that make sense for your agency also gives you added protection against downturns and market fluctuations. Just make sure that the team providing your white label services are expert in the area.
Though it’s important to constantly be prospecting for new clients, it’s even more important to make return clients the backbone of your business if you want to increase marketing agency profits. Serving return clients will save a huge amount of money in costs versus constantly serving new clients. Not only that, but loyal, return clients will give you referrals, especially if you set up a referral system where you periodically ask for those referrals.
How do you keep clients loyal? Under-promise and over-deliver, give your return clients priority and always be transparent. Communication is key. Make sure your clients understand you value them and care about their business, not just your own bottom line. When there is a problem, fix it quickly and with a smile.
Anyone with a successful business must invest in developing leads and closing sales. Of course, giving good service is critical, but if you ignore the sales aspect of your business, you won’t have a business for long.
Provide valuable content such as white papers that people will be happy to give you contact information in exchange for access. Hold webinars and seminars. If it makes sense for your business, use social media to get customer contact information. Create a referral program. There are a myriad of ways to get leads into your company.
Developing leads can be a time pit for business owners. Invest in good CRM software to manage your contacts, guide them through the sales funnel and close. Instead of spending your own time or that of your high-level people on every aspect of the sales process, find ways to bring in leads and set up meetings efficiently for you to close.
Consider using a sales development rep (SDR) to schedule meetings with hot prospects. It’s a better use of your time to only meet with hot prospects rather than pursuing 10 leads that go nowhere in order to get one meeting. Farm that out to someone trained on how to do it effectively. This gives you and your marketing staff more time to deliver great marketing results to your clients.
I think we have all had a project where once it is finished, the client wants additional services without additional payment. It’s important that communication about the project is clear, specific and in writing. For example, specify the number of revisions you will do without charging more.
Also, try to answer your client’s questions upfront before they even ask them to prevent constant questions and unnecessary meetings.
Umbrella is a digital marketing platform that provides marketers with training, the latest marketing technology and white label services performed by experts. We can also help you get leads and set meetings.
Contact us here or call us at (866) 760-2638 for a free consultation about how we can help your digital marketing agency.
Book a call today to discuss how we can help your marketing agency grow.