Existing Client Growth For Marketing Services Firms a Positive in 2021, but 2022 Warning Signs Exist With A Decrease In the Pursuit Of "New" New Business
CINCINNATI, Oct. 29, 2021 /PRNewswire/ -- RSW/US, the nation's leading outsourced business development firm for marketing agencies, just completed its annual RSW/US 2021 Agency New Business Report.
This year's survey and resulting report saw many small and mid-sized agencies growing or regaining lost growth from the previous year. For example, 38% of agencies said it was easier or a lot easier to obtain new business this year, versus 7% in 2020. And "business from existing clients," at 71%, was reported as the most effective method/tool for bringing in new business.
But with this rise of organic growth, firms should be aware of warning signs heading into 2022. The first is a multi-year decline in referrals, traditionally the predominant method for agencies to gain new business. There was a slight dip from 62% in 2019 to 60% in 2020. 2021 saw a deeper drop - to 53%.
Another sign: agencies are not investing in the development of "new" new business.
This plays out in the low percentages (all under 10%) attributed to phone calls, social media, inbound, and traditional mailings.
A few other key stats that exemplify the lack of a strategic plan around "new" new business:
- Ad agencies said the predominant reason it was harder to obtain new business in 2021: "harder to break through to prospects" at 59%, up from 42% in 2020.
- 29% of agencies say they have a client that represents more than 50% of their business, versus 17% last year.
- Hiring for the new business director position at an agency is at its lowest level since the survey started in 2010, with just 32% of agencies hiring a new business director in the past 3 years.
The growth for so many firms in 2021 should be celebrated, but change is a constant in our industry, and existing growth will not last at these levels. It's critical heading into 2022 that agencies have a manageable framework for "new" new business.
About RSW/US
RSW/US is the nation's leading outsourced business development group that helps marketing agencies find meaningful new business opportunities and get them closer to close. To learn more visit www.rswus.com or call Lee McKnight at 513-559-3111.
Contact: Lee McKnight Jr.
Phone: 513-559-3111
Email: [email protected]
SOURCE RSW/US
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