Picture this: you’re an agency owner, eagerly awaiting the results of a pitch you poured your heart and soul into. Days turn into weeks, and finally, the verdict arrives… “Thank you for your submission, but we’ve decided to go with another agency.” Ouch! That rejection stings, doesn’t it? And to add insult to injury, you realize you’ve just wasted countless hours and thousands of dollars on a fruitless endeavor.
The Steep Cost of Pitches
The reality is, pitches are an expensive gamble. Small-to-medium agencies shell out an average of $660,000 annually on RFPs (requests for proposals), pitches, and business development marketing. That’s a hefty sum, especially considering the low odds of success. Even Hall of Fame baseball players have a batting average of .300, which translates to winning just three out of every 10 pitches in the advertising industry.
Why Pitches Fail
There are several reasons why pitches fail, but one of the biggest is poor target selection. Agencies often spread themselves too thin, pursuing accounts that are a poor fit for their expertise or that have a low probability of success. This scattershot approach dilutes their efforts and reduces their chances of winning.
The Solution: Targeted New Business Programs
Instead of chasing every opportunity, agencies should adopt a more targeted approach to new business development. This involves carefully evaluating potential clients based on specific criteria, such as:
- Alignment with the agency’s core competencies
- Budgetary fit
- Decision-making process
- Likelihood of a long-term partnership
By focusing their efforts on the right clients, agencies can increase their win rate and minimize wasted time and resources.
The Levitan Pitch Method
In his book “The Levitan Pitch,” author and marketing expert Bob Levitan outlines a proven method for improving pitch success rates. Levitan emphasizes the importance of storytelling, emotional connection, and a clear understanding of the client’s needs. By following his principles, agencies can craft pitches that resonate with clients and increase their chances of winning.
Bonus: The Power of Rejection
While rejection can be disheartening, it’s important to remember that it’s a natural part of the business development process. Every “no” brings you closer to a “yes.” Embrace rejection as an opportunity to learn, refine your approach, and come back stronger. As the saying goes, “The only true failure is the failure to try.”
Conclusion
Pitches are an essential part of agency life, but they should be approached strategically to avoid wasting time and resources. By carefully selecting potential clients, adopting targeted new business programs, and leveraging proven pitching techniques, agencies can increase their win rate and build a thriving business.
Frequently Asked Questions:
What is the average cost of an RFP?
Approximately $15,000, based on 150 hours of agency work at $100 per hour.
What is the average cost of a pitch?
Approximately $35,000, based on 150 hours of agency work at $100 per hour.
How can I improve my pitch success rate?
Follow the Levitan Pitch method, which emphasizes storytelling, emotional connection, and a clear understanding of the client’s needs.
Leave a Reply