#reach – Brian Phelps Consulting (BPC)

All clients are important. They should be made a priority, respected and given 100% effort to help them solve their business problem(s).

Each client is different. Maybe they’re focused on consumer communications. Or B2B. Maybe they’re looking for more strategic help or creative or having a production focus. Some have smaller budgets and some larger. Some are focused on blocking and tackling deliverables and some on winning awards. Much too often a one size fits all treatment is used by agencies. The agency solution must be customized to each client’s needs. These differences should be a consideration when building and managing an agency.

Another consideration is diversification. In today’s climate, the importance of diversifying continues to grow. With the average client relationship lengths decreasing, in-house studios growing and total budgets shrinking, having a diverse client set of clients to mitigate the risk of loss is important.

One way to view diversification is by looking at the agency client roster as a portfolio, just like the stock market. We all took an introductory finance class that talked about putting stocks into four categories:

RISING STARS:
High market share in a
growth market
QUESTION MARKS:
Low market share in a
growth market
DOGS:
Low market share in a
slowing market
CASH COWS:
High market share in a slowing market

The same approach can be used for analyzing your client roster:

STARS: established clients that want/expect award-winning, breakthrough work. Ability to create great work to propel them upwards.

COWS: stable clients that have a large volume of work, potentially needing blocking/tackling support and where the ability to do breakthrough work is less common. They are a known brand and are of good size.

QUESTION MARKS: less established clients that with breakthrough work, could springboard their business to become well-known.

DOGS: hopefully you don’t have any of these but it could be a relationship that is trending the wrong way. Or there aren’t a lot of opportunities.

So to develop a client portfolio strategy:

For each client, determine which bucket they fit into. Be transparent/realistic.
Once done, look at how diversified your offering is as across the total agency.
Determine where there are gaps (in general, it’s good to have a few in each of the main three categories).

This strategy can help you manage your resources and agency effort, as well as when tied in with your new business strategy, help identify areas of growth.

So, what does your agency’s client portfolio look like?

For more marketing thoughts, please see my blog at: brianphelpsconsulting.com/passion

We have been trained to think we must be specialized in something. To focus all our energies. Because the belief is, to excel you must have a singular focus. Even at a young age. Look at athletics. Kids are told to choose a sport rather than enjoy multiple. 100% focus on baseball rather than enjoying other sports like football, tennis, and soccer. Or to specialize in one instrument rather than experiencing and enjoying a range of instruments.

The same is true in the workplace. Are you an account person or strategist? Business or creative? Art director or writer? So that the goal is you can do that function over and over again and excel at it through repetition. And thereby make more money.

Well, it’s a myth. Empirical evidence shows that “hybrids” or “generalists” (a term that itself is poor, giving the feeling you are an expert in nothing) are stronger, better for organizations, and will be more successful. They’re more creative, more agile, and able to make connections their more specialized peers can’t see.

A great new book and one on the #1 on the New York Times Best Seller’s list dives deep into the power of hybrids, Range: Why Generalists Triumph in a Specialized World, and details the inaccurate stereotypes.

Taking it a step further, with AI and the power of machines, specialists will be replaced by automation, making the need to have deep generalists only continuing to increase.

We are starting to see the growth of hybrids being recognized as a positive in the advertising industry. One tangible example is the “growth” of Chief Growth Officer. Adweek recently discussed this role, as the name implies, to drive growth—but in ways that serve internal functions (build cross-functional teams) and external (keeping an eye on customer demand; what does the consumer want from us?).

As you probably can tell I am a big fan of hybrids. I’m a little biased as I consider myself a hybrid, having played different roles throughout my career – from account to operations, new business, and strategy. Knowing and excelling in a wide range of areas, in my opinion, is critical to having a successful team, especially in a leadership position. This way you understand what it takes and you should have more empathy towards the team members who do the work.

However, I’m not completely dismissing the role of specialists. I think they have value, with the key being developing a ratio/balance of hybrids and specialists for the greatest success. For example, 70% hybrid with 30% specializing in specific tasks, like SEO, etc.

From an efficiency standpoint, it’s also better having one person that is can do more topics rather than having to pay for several people.

So the questions for you is: are you a specialist or hybrid? Do you agree in the power hybrids? And what is the ratio across your team?

Check out more business thoughts at: brianphelpsconsulting.com/passion

Tag: #reach

Developing a Client Portfolio Strategy

Are you a “Specialist” or a “Hybrid”?