VALUE PROPOSITION – Step 3 to becoming a Momentum Agency
This is the third in a series of eight pieces which will share our in-depth thoughts on how your firm can become a Momentum Agency. These are agencies that consistently outpace the industry in terms of revenue growth, profitability and a culture that attracts A-level talent.
Momentum Agencies do an outstanding job in managing the eight variables that drive growth and success over time. In our experience, these growth drivers are:
A compelling mission that attracts talent and clients. (This was covered in a previous mailing.)
Defined vision with a strategic plan on how to achieve it. (Covered in our most recent mailing.)
Differentiated and compelling value proposition defined by deep knowledge and expertise. (This is the subject of today’s mailing.)
Organizational structure that effectively and efficiently sells and services the value proposition.
A belief in core methodologies and IP.
Culture (including formal training around those methodologies).
A dedicated new business development function.
Understanding how to manage an agency for fair profit.
The right Value Proposition = Super Competitiveness.
An aspirational goal for your Value Proposition is to make your agency super competitive. Your proposition is so clear and compelling that prospects see your agency as built specifically to serve them. It’s so powerful that your agency can be hired based simply on a review of your website or from an initial conversation with you.
This goal of super competitiveness is easier to achieve for agencies with a specific industry or specialty focus (niche area) than for generalist agencies. Niche firms are not trying to attract all comers. Instead, they’re built to serve a very specific set of clients and deliver exceptional value to them.
These agencies understand their category in a deep, profound way. They lead with strategy as their main selling point. This is the space you want to occupy in clients’ minds. This is how you transcend from being a mere seller of commodity services to becoming their strategic partner.
As an agency owner, it’s your job… not the client’s… to figure out and then demonstrate how you’re different and preferable versus your competition.
WHAT YOU KNOW is more important than what you do.
Don’t make the all-too-common mistake of basing your Value Proposition on what you do.
Virtually all of your competitors do pretty much the same things. What you do is a commodity and commodities are usually purchased on who’s offering the lowest price at the moment.
What you know and where the agency has passion are unique. Your knowledge and passion are what most differentiate you versus competitors. They are what clients need and want most. They put you on a much higher and more important strategic plane than being just another supplier. And clients are willing to pay considerably more to get them.
You should build your Value Proposition (and your agency) based on what you know best. Where is your knowledge and passion deepest? Where can these hold up against even the toughest competition? Which industries, product or service categories, target groups, trends or public issues do you truly know well from A to Z?
Your Value Proposition should focus upon selling and servicing a very specific set of clients who have a deep need for the knowledge, experience and passion you offer.
The essence of a strong Value Proposition is focus.
The other all-too-common mistake is to offer too much to too many. Don’t fall into this trap either. To create a strong and lasting Value Proposition, you need to pare away the possible to arrive at the right.
Carefully think through your candid answers to these questions:
What does my agency do better than our competitors? (Be brutally honest here. No wish lists.)
Where do we have deep passion and history?
Why do we come to work each day?
Where and how can we move up from being a supplier to clients to becoming a valued (and rare) strategic resource?
Be honest. Be tough on yourself. Your Value Proposition should flow directly from your answers.
How to create a compelling Value Proposition for your agency.
At Prosper Group, we believe that your agency’s Value Proposition should include these key elements:
Positioning and messaging about the agency
Client service delivery process, related products and IP
Service offerings
Quality of client roster
Depth and breadth of client programs
Let’s review the elements of a compelling agency value proposition one by one.
Element #1 of a strong Value Proposition – Positioning and messaging.
Your Value Proposition must be clearly communicated to your target prospects. At its most basic, you’re promising marketing salvation to strategically selected companies in a simple, credible way.
As we discussed in our earlier mailing about Mission, we believe in Simon Sinek’s high-level positioning architecture of Why, How and What. This is the foundation for deep differentiation from your competitors:
Why = The inspirational reason your agency exists.
How = Your branded approach to client service delivery that results in consistently better results than competitors.
What = Your service offerings which are table stakes with any prospect.
Your messaging must be clear and consistent, starting with a laser focus on the markets or industries you wish to serve. Showcase your senior team within the agency’s deep experience and history. Repeatedly demonstrate your knowledge with case studies, bios, IP and other proof points.
Element #2 – Client service delivery process, related products and IP.
Your success will depend upon both the perception and reality of how well you can deliver superior client service and results. You need a carefully constructed and truly proprietary approach which clearly explains precisely how you will deliver.
This approach will be executed via methodologies that support the perception of your deep knowledge and experience. It will include but not necessarily be limited to branded products such as:
Your unique approach to data, insight and strategy development
Unique approaches to paid, earned, social and owned media work
Your process for developing clients’ brand and content work
If appropriate, a branded process for work in com tech
Back-end analytics
You should also invest in developing related IP which demonstrates your deep knowledge. This might be a methodology, marketing platform or another product. For example: a healthcare agency could develop its own Med Tech Adoption Cycle.
Element #3 – Service offerings.
If you specialize in just one facet of communications (e.g. – earned media or digital), make sure your agency’s service offerings are comprehensive and compelling. For most agencies that are not so tightly focused, also be sure your firm is able to deliver integrated campaigns either with just the internal team or pre-established outside partners.
Whatever it is that you choose to offer, you must in fact be able to deliver on that promise in full, on time and all the time. This is where an overall delivery methodology can powerfully reinforce your agency positioning with related products or sub-methodologies for everything from data to content development to distribution.
Element #4 – Quality of client roster.
You can’t just claim a Value Proposition. For it to be credible over time, you must live it and prove it. And there’s no more convincing proof than the quality of the client company you keep.
Quality generally attracts quality. Your client roster will directly impact the quality of the new clients you win. Blue chip clients want to be where other blue chippers already are. That in turn will have a significant impact on the quality of the talent you can recruit, nurture and retain.
Apply the same high standard of quality control to identifying your dream clients. This will help keep you more focused, motivated and relentless in your pursuit.
Element #5 – Depth and breadth of client programs.
Your approach to serving your clients should reflect the goal of working with a smaller number of larger clients with bigger budgets. Properly managed, you will make more money this way. You’ll also be able to attract better people who want to help meet the marketing and communications challenges of important, well-known companies.
Larger budgets are good indicators of the breadth and depth of services you’re providing to a given client. As the services being provided become broader and deeper over time, you also need to ensure that your agency’s relationships with that client are correspondingly keeping up.
OK. We’ve nailed our Value Proposition. Now what?
As the owner, you need to organize the agency’s organizational structure to effectively and efficiently sell and deliver on the Value Proposition. Each person needs to know how his or her role, responsibilities and client-facing activities fit within the proposition and help to move it forward.
You build your talent recruitment and training programs around the Value Proposition. Recruit talent that strengthens the proposition through the addition of experience and knowledge, so the firm becomes very deep. Teach your client service delivery process and related IP/products so that you’re building a steady pipeline of next generation leaders.
You must also ensure that the proposition itself and all related messaging are clear and consistent across all materials and platforms. Case studies and team bios should be written with a specific slant towards the clients you wish to serve.
How to know you’re on the right track.
Here are four of the signs that your Value Proposition is working. Most of these are measurable too.
A growing client roster of blue chip or category-leading companies.
Longer and deeper client engagements with larger (and growing) budgets.
A steady flow of quality leads attracted by your marketing of the proposition, IP and services.
Being able to consistently attract and retain the best talent for delivering your Value Proposition.
Prosper Group is here to help you succeed.
We exist to help the owners of independent marketing communications agencies achieve their goals and maximize the value of their life’s work.
We have the people, experience and methodologies to help you develop a strong Mission, Vision and Value Proposition for your agency.
Please don’t hesitate to contact us at any time.