In every marketing and sales system, the first step always includes “gathering information and learning”.

The value of that time and expense is a critical early step. Results of that new information should lead to:
• More new client opportunities
• Less cost in gaining new clients
• Less churn/turnover in current clients
• More profit per client
• More clients getting an increased set of services from the agency
• More satisfied staff
• More referrals: current and past clients telling others about their positive experiences and boost in income

While there is no perfect solution, a Feedback And Reputation Report from Gap Management can provide clear, specific and manageable points.

Instead of stories, let’s work the numbers. As an example, the fees for a full Report with all regular sections is $4,250 Canadian/ or $3,100 US.

The following numbers come from a variety of sources. These figures are appropriate for a digital marketing agency with less than 15 staff/contractors.

Costs Of Getting A New Agency Client
• Making first contact
• Building relationships
• Discussing options
• Preparing proposal and presentation
• Onboarding, first 2-3 months
Only after that is the income from the client to the agency moving toward a profit.

Sales Cost
If an agency owner/partner or client development professional earns $90,000 per year, and does attend networking events, maintains referral partnerships, builds relationships, spends time researching, makes 2 or more presentations to a potential client, involves other agency specialists regarding SEO, PPC, social media, design, copywriting and more – then a new client can cost $5,000 to $10,000 to acquire.

Onboarding Cost
As the first 2-3 months of the new client setup and onboarding can be 40-60% of the income.

Churn rates above 30% are serious. 15-25% are common. Reduce churn and profit is boosted.

Based on the above numbers, a FAR Report that takes 4 hours of agency time, before the full Report is delivered, is a reasonable consideration.

Cost Of Churn, Per New Client

Form	Approximate Cost	Notes
SEO, PPC, social media, memberships, networking	$1,000	Online and in-person networking, communications, reputation development
Direct Client Development: making first contact in person & building trust	$200	Moving contact from acquaintance to prospect
Developing relationship with new contact, research, emails, phone/video conversations	$500	Learning about the specific business/professional firm; answering questions; competitive positioning
Presentation & Proposal Development	$500	Preparation and delivery of presentation with detailed new actions & Ideas
Onboarding	$4,000	First 2 months of high service
Total: New Client Development	$6,200 in costs

And the above costs are reduced after the first few months after the Report results are used. Beyond that, the efficiencies and increased value continues when guided by specifics in a Feedback And Reputation Report.

How a Report shifts the economics:
• Preferred client vs Average client: Improved targeting. Focused networking and referral partnerships are very effective
• More insight: Deeper understanding of a niche – motivations, issues, their preferred clients. New potential clients look for an agency “that gets us, we don’t need to waste time”.
• Clear communications: preferred communication methods used, on a reasonable basis
• Client Development personnel with appropriate StoryFrames (for conversations) and battle cards (to answer specific objections in a presentation)
• Narratives and actual stories: evidence of experience
• Testimonials: social proof with details
• Social media with real examples: more evidence to reinforce the agency’s reputation
• Improved media and influencer relations: able to deliver to the right media in the appropriate ways

For details, contact Gap Management and let’s discuss improving your positioning, client types and more.

Ask for some of free tools from Gap Management. eg How To Use The Stories Your Clients Tell About Your Agency:
When you get stories from current and past clients, with their permission to use, they are excellent in new Client Development actions. Ask to receive Gap Management’s free “Storytelling Guide” or “Networking Notes” to improve relationship-building. Both are very appropriate for marketing high-value services such as marketing agencies, professional services firms, home renovators/remodelers, and business coaches.