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  • Writer's pictureMichael Hunter

How Does Your Agency Measure Up?

Updated: Nov 19, 2018

Want to know how good your agency really is, and how to make it better?

In an agency landscape where revenue is flat, I often hear variants of this: “I don’t know why we’re not growing. We have well-known clients. We have great people. We do great work.” Well, you know who else can say that? Just about every other agency.

I can measure your agency’s strengths through a client’s lens, not your inherently biased one. You may or may not like what the numbers tell you, but they form a crucial starting point to your growth efforts.

Here are 7 metrics I've developed to help you gauge – and improve – your agency's market power:

  1. Industry Focus – scores and ranks various industries (by size, growth rate, ad spend, and your experience) to prioritize those you should focus on.

  2. Geographic Concentration – measures the distance from your clients’ offices to yours – in both simple and dollar-weighted average terms – to show how local / regional / national your agency’s drawing power is.

  3. Brand Power – measures the average unaided brand awareness of your clients’ brands.

  4. Jargon-o-meter – quantifies how differentiating your agency’s positioning is.

  5. "Moneyball" – scores and ranks hundreds of prospective companies along several criteria (industry fit, motivation to change agencies, networking strength, proximity, fee range) to prioritize those most likely to become your next client.

  6. Opportunity Scorecard – evaluates incoming opportunities along 6 criteria to determine attractiveness and expected value (fee size x probability of winning it).

  7. Win/Loss Ratio – tracks the percentage of pitches won and lost… relative to the # of finalists.

Sample of "Moneyball" client prospect prioritization tool

Michael Hunter runs Parallel-49, a marketing consultancy that has advised Lowe’s, Panasonic, GE, and agencies including BBDO and Landor. A marketing executive whose job it was to choose agencies while a client at Best Buy, KitchenAid, and Campbell Soup – and a Chief Marketing & Growth Officer whose job it was to get his agencies chosen by clients – he works as a growth consultant and fractional CMO for non-competing agencies.

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