14 Challenges Agencies & Media Companies Face
The internet is the largest and most accessible marketplace in history. Think about how crazy it is that with a few virtual clicks, you can buy sweater, a car, a house or be on your way to Costa Rica. The consumer buying experience has completely changed; we now have access to everything we want and more, right at our fingertips.
For every action, well, there is an equal and opposite reaction. Since the way we buy has changed, so has the way we sell. Flyers have become PPC ads, coupons are now tweets, and newspapers have turned into web pages. Some change is more gradual than others, but these are changes we just can’t argue with—81% of us go online to make purchasing decisions, and these are the types of advertisements we are engaging with (GE’s Major Purchase Shopper Study).
Surprisingly, even in 2015, there are many agencies, media companies and local businesses who are still pouring money into traditional selling methods like cold calling and print collateral and campaigns. While traditional advertising does have a place, if this is your bread and butter, you must be getting hungry.
Smart businesses are investing in digital solutions—that is where the consumers are—that are revenue generators for both you and your clients. In 2013, digital interactions influence 36 cents of every dollar spent in-store; that’s approximately $1.1 trillion. By the end of 2014, that number rose to 50 cents, resulting in $1.5 trillion of total store sales (Deloitte Digital Study).
There are (literally) trillions of dollars to be had here. Meaning, this is a prime opportunity for you to start offering clients digital solutions, right? Maybe not though...
Maybe you’re one of the many good agencies or media companies who recognize the opportunity but are reluctant to enter the digital game. Unfortunately, you may have discovered that offering digital solutions creates a ton of business challenges that might seem next to impossible to conquer. I bet most of this sounds familiar…
1. Digital is hard to sell
Salespeople find it increasingly difficult to get local businesses to buy in to their offering
2. Cost of sales is too high
Traditional selling methods don’t scale for digital dimes; time and resources are wasted on cold leads that aren’t ready to buy.
3. Digital gross margin is too low
Digital solutions come with high fixed and variable costs that create slim margins and low ROI.
4. Sales reps are hard to track and manage
Measuring your sales team’s true productivity and performance is difficult, if not impossible.
5. Marketing ROI is hard to measure
You crave comprehensive marketing analytics that measure your campaigns’ true ROI.
6. Losing customer segments to low cost digital providers
It’s difficult to compete against new players who offer solutions that undercut you on pricing.
7. High client churn
Retaining customers is a challenge due to a variety of reasons, from pricing to support to competition.
8. Multiple tools and vendors are hard to manage
Working with multiple solutions creates vendor clutter, disparity between tools and ongoing IT issues.
9. Clients have varying needs
One digital package does not fit all; your current service model doesn’t accommodate for clients with various needs.
10. Scaling issues
Resources and services don’t scale to accommodate a growing client base.
11. Onboarding takes too much time
Large efforts are involved in implementing a new tool, not to mention training for all clients.
12. Lack of reporting
Clients demand complete transparency of their digital solutions with comprehensive performance reports.
13. Digital solutions are priced too high
Quality digital solutions are out of your clients’ monthly marketing spend.
14. Integrating digital solutions is difficult
Too much time and effort is involved in integrating new solutions with existing ones.
The good news is there’s still time, a lot of business to be had and a solution to your problems.
