Sales Pitch & Strategy - Agency Preso

Sharing Experience
Sales Pitch and Sales Strategy
Hello, my name is Gabriel
5 Years ago
2 Xooglers
Vision
SEA
2009
SEO
WA
2012
Strong growth reaching
a Turnover of 12.2M
+ team of 14
Jan 2011
Internal SEA
Technology launched
Apr 2010
Semetis becomes
Google Analytics
Certified Partner
Semetis: preferred
eBusiness partner
4
Mar 2009
Semetis set-up
Summer 2011
First Facebook & Bing
Campaigns
3
2
1
Summer 2009
First clients signed:
Touring Assurances,
DIeteren, Scarlet,
Brico, Ixina, RTBF,
IKEA, SNCB,
Jan 2011
Semetis wins the
Belgacom-Proximus
overall SEA contract
2013 - 2014
Continuous Growth. Re-positioning + RTB
Office Extension (250 m) & collaboration
with other communication agencies.
+ team of 20
Fast Evolution: from 2009 to 2015

4
Semetis: Multiple Services
Digital
Advertising
Digital
Business
Intelligence
In-house Technology + SaaS for agencies
A Team of 20 people
A Portfolio of International Clients
Maintain happy clients

while working on the
continuous sales pipe !
AGENDA (part 1)
HELPING YOU TO HAVE BETTER PITCHES
- Market analysis, digital trends
- Consumer buying behavior + consumers typologies
- Competition analysis
- Benchmarking
- Objectives
- Google product mix and the allocation of the budgets
- Estimated results
- Life time value
- Fees
- Start date + Next steps
+ The WoW moment that will surprise the client
AGENDA (part 2)
DISCUSSION ABOUT YOUR SALES STRATEGY
- define target market/verticals/type of clients
- how to approach potential clients: networking, events,
recommendations, PR, advertising etc
- how to obtain the pitch
- building long term relationships
- business model: differentiation, monetization, KPIs
Client acquisition vs Market positioning
vs
Client acquisition
Sales Process
Part1 - Understand
Convince why prospects need an agency
Establish your value proposition
Be prepared to talk about your case studies
Part2 Prepare beforehand

Do your homework about the prospect
Build a tailor-made offer that cant be refused
Follow-up call and meeting
Part3 Sales Funnel
Close
Deliver
Retention
Why do Companies Hire Agencies?
Specialization & Expertise

Some companies dont want to deal with the challenge of bringing marketing in-house. With
todays expanding and fragmented media landscape, it isnt realistic for them to understand
everything about traditional and digital platforms. Many small businesses do not have the
resources or experience to execute their own advertising campaigns. A good agency can
provide expertise and resources not available within an organization.
Prospective & Ideas

Agencies can offer a fresh perspective on how to approach a clients products, business, and
target audience. Many agencies will offer creative ad copy or imagery that will increase brand
awareness or sales for the company.
Whats YOUR value proposition?
Were
CERTIFIED
We know this
is part of a
PLATFORM
We make you
STAND OUT
Were IN THE
KNOW
We believe in
ANALYTICS &
accountability
Weve DONE
THIS BEFORE
YOUR case studies
Semetis Case study on video: YouTube.com/semetis
Do Your Homework: The site
Macaroni & Cheese
Buy Now!
What are the conversion actions?
Is it possible / clear / easy to convert?
Are there landing pages you can use for

specific ads or will you need to build
them?
Do Your Homework: Search
Whos the competition?
Are there other advertisers in the space?
Are there negative keywords you can identify?
Do Your Homework: Keyword planner
Is there a good search

volume?
Whats the competition

like?
Is there anything you can

tell about the industry
from the keyword ideas?
macaroni and cheese
mac and cheese
kraft dinner
Do Your Homework: Google Insights for Search
Do Your Homework: Google Insights for Search
Do Your Homework: Look at their existing Google Adwords

account (if access is granted)
Looking around the account: Structure
Campaign #1
Little or no
targeting!
Ad Group #1
Hundreds of keywords
thrown together
Single generic ad

Looking around the account: Landing pages
Oops!
Page not found

Looking around the account: Conversions and
Google Analytics

Looking around the account: Change history
Build a tailor-made offer that cant be refused
Budget
$10,000
Avg. Cost Per Click
$1.15
Expected Conv. Rate
4.0%
$1.00
Value Per Conversion $50.00

Total Expected
Return
$17,391.30
MY FEES
$2,000.00
ROI
45%
$1.45
Skills needed for sales
Sales caricatures
Understanding how you want to sell
Who actually likes sales?
but its the oxygen that feeds

your business!
Principle #1 Commit to the Practice of Listening
The most important tool in

your sales tool kit
Listen > Talk

Then
ASK QUESTIONS
Principle #2 Practice Radical Honesty
Radical Honesty requires

guts
Hi ______,
We have carefully reviewed all the documentation and
information in your RFP. I regret to inform you that we
have decided not to submit a proposal and will not be
bidding on the project in its current form at this time.
While we believe that we have the skills, experience,
language fluency and capacity to develop a
comprehensive global solution for _____, our
concerns center around expectations of timing, scope,
alignment and costs. A key issue is reconciling the
project scope with the estimated time frame. Our
experience is that this requires at least double the
anticipated time frame, which of course has a
significant impact on costs.
In the meantime, we wish you success with your
initiative.
Regards,
Principle #3 - Practice Knowing Thyself

RISK!! This is too
much of a
stretch
REVENUE!! Lets
go for it
Know thyself
Dont get too far over your skis
Key question: if we take this, will it distract us from our core work?
Will it create legacy risk? Will it demoralize staff? Is it a bad idea?
Principle #4: You need a story

Top tier
(compete on
knowledge)
The squeeze
zone
Work is not procured

Sustainable processes, unique
services that are market driven,
high touch, high value & create
competitive advantage for clients
Mid-tier
(do a lot of stuff and
compete on price!)
Single shops
(we do
PPC! We do it cheap! We do it
fast!)
Margins squeezed by lower

tier; cash flow will limit
operational flexibility;
endless contract cycle
Commoditized
services: low dollar,
low margin, nonrepeatable
business
The story is important
SEM
The story is important
What will you compete on?

Price
Quality
Service
Skill
Experience
Outcomes
Principle #5 Practice Hunting Mammoths
Practice Hunting Mammoths and NOT rabbits !

Low dollar projects (rabbits) take a lot of
resources to manage, leave no room for error
and dont create relationships with people who
will continue to purchase your services going
forward
AND clients that spend $10K with you are often more of a
pain and difficult to manage than those that spend $100K.
Principle #6 - People buy people
Especially in SMEs
Human side of the deal
Trust & transparency
I hired [name of person],

not [name of company]
- Customer
Consultant
Principle #7 Be fearless (have chutzpah!)
Principle #7 Be fearless
(dont fear rejection)
40% is an AWESOME
close rate
and it means you are
being rejected 60% of the
time
Principle #8 Be responsive
Reply to inquiries
quickly
Suggested response times when someone
reaches out to you by:
Website contact form: within 4 hours

Phone or email: within 2 hours
Social media: within 1 hour (particularly if public)
Principle #9 Follow-through
Contract
Deliverable
Say what you are

going to do, by when
youll get it done, and
then do it
Principle #10 Follow-up
Never be judgmental
about why prospects
dont follow-through
Never be shy to use all
the tools at your disposal
to reach them
BONUS! Principle #11 Seek Alignment

If it doesnt work for you, it wont work
for me.
If it doesnt for me, it wont work for you.
When our interests are aligned, good
things will flow
The key to this is Emotional Honesty
Alignment comes about through
discussion, clarification, transparency,
documentation and regular, scheduled
check-ins
If you get all the principles aligned, you have a

chance of becoming The Trusted Advisor
Different industries, different needs !
eCommerce
Revenue
Transactions (volume)
ROI
Margins
Retail
Buying cycle
Leads
Sales
RoPo (Geo)
Travel
Retention
Revenue
Finance
Idem as retail
+ Upsell (other products) => retention
Telecom
customer lifetime-value
= new clients (+upsell/retention) - churn
FMCG
Brand awareness
Indirect sales
Brand recall
Publishing
Viewership/Audience
Pageviews
Advertising revenue
Automotive
Awareness + Lead + RoPo
Prospection funnel
The sales cycle: process outline
Prospect
PreApproach
Approach
Needs
Analysis
Proposal
Understanding How You Want To Sell
Close
MARKETING
The sales cycle: relationship to marketing
Prospect
PreApproach
Approach
Needs
Analysis
Proposal
Close
First step of the sales cycle: prospecting
PreProspectApproach
Prospect
Approach
Needs
Analysis
Proposal
Close
The sales cycle: prospecting
Prospecting is the process of identifying, qualifying,

and prioritizing organizations and individuals that
have the need for and potential to purchase the
salespersons market offering of products and services
The sales cycle: prospecting
When prospecting, think: Must. Hunt. Mammoths.

The most important of all process tools - CRM

Track contacts
Categorize / prioritize
Manage sales funnel
Reminders
Reports
Resource allocation
History / relationship
People, Partnerships & Systems: Keys to Long-Term Success
Process tools to aid prospecting
Process tools to aid prospecting / marketing

automation
$$$
Second step of the sales cycle: pre-approach
Prospect
PrePreApproach
Approach
Approach
Needs
Analysis
Proposal
Close
Second step of the sales cycle: pre-approach

Do your research
Develop your plan of

approach
Process tools to aid pre-approach research
Third step of the sales cycle: approach
Prospect
PreApproach
Needs
Approach
Approach
Analysis
Proposal
Close
Third step of the sales cycle: approach
Third step of the sales cycle: approach (and rejection)
Be
FEARLESS
Fourth step of the sales cycle: needs analysis
Prospect
PreApproach
Approach
Needs
Needs
Analysis
Analysis
Proposal
Close

Ask questions
Assume this is your
only meeting
Work to uncover the
full potential scope of
work

Practice listening
Have a great story
Fifth step of the sales cycle: the proposal
Prospect
PreApproach
Approach
Needs
Analysis
Proposal
Proposal
Close
Fifth step of the sales cycle: the proposal

1. You need an NDA
2. Get under the hood
What is scope? (affects time & costs)
3. Qualify before sending full

proposal
Gut check and ensure alignment
4. Send proposal appropriate to the

engagement
Short form: highly aligned &

appropriate
Long form: if to be shared widely
Sixth step of the sales cycle: the close
Prospect
PreApproach
Approach
Needs
Analysis
Proposal
Close
Close
You can agree on terms


But you want to get it in writing
The contract:
ensuring that what
you agree to and
what you agree to do
are one and the same
1. Take the time to get
it right
2. Be prepared to walk
away if you cant get
it right
Painful as that may
be
A process can be instrumented and measured
A process can be instrumented and measured

Some of the key metrics that you need to think about
tracking for sales include:
a. Number of new opportunities (month over month)
b. Number of proposal issued (month over month)

c. Number of closed deals (month over month)
d. Days to close (from opportunity; from proposal)
e. Opportunity size; proposal size; close size

f. Deals lost at close
Semetis examples
1.
2.
3.
A presentation
A proposal following this presentation
Another proposal to a existing client
Market positioning
Two broad types of leads & different approaches

Inbound
From leads to prospects: building prospects
Inbound leads - the sweetest of leads
Phone call
Inquiry
Referral
Friend
Network
Outbound leads: result of directly reaching a

prospect (demand generation)
Cost of outbound vs. inbound lead generation
Source: State of Inbound Marketing, Hubspot, 2012
Inbound leads are result of a tremendous amount

of hard work, much of which goes unseen
Get the basics taken care of first
Pay attention to your SERP! All

aspects of your SERP
(dont be the cobblers child)
Check your website:

forms
Content generation drives leads
Source: Hubspot, state of Inbound Marketing Lead Generation Report, 2010
Generating leads: outbound
conferences
mail
Costs
ROI/ROE
advertising
calling
networking
more costs & effort & exposure but more control
Client research the foundation of good lead

generation
DO
DONT
Look at the website

Light Internet stalking
Review search profile
Review competitive landscape
Save money by not investing in

the right tools
Chase clients that cant afford it
Think that a prospect might be too
big for you to work with
Generating leads: calling
http://www.youtube.com/watch?v=ANMbuUxW2CE
Cold calling, meh. Warm calling yeah!
You should never be making cold calls
Think about the call
Reach out only to well qualified prospects, and treat the call as
an opportunity to learn
Have your script and story ready, be transparent about why

you are calling, and emotionally honest throughout
Listen carefully, ask questions and take notes
Work to qualify the prospect
Good fit now? Get the meeting. Make the ask. Dont accept a
maybe re-qualify and commit to a future touch point.
Good fit later? Put them on active contact
Not a good fit? Move on dont waste time.
Dos and donts of calls
Dont ask how are you doing
Do thank them for taking your call
Reciprocity at work: your thanks motivates them to stay
Ask If you have a moment, Id like to discuss with you how you are
spending & managing your paid search
Asking do you have a moment may lead to a no. If this happens,
respond with a when would be better time to connect Listen
carefully, ask questions and take notes
Do ask if they are free, within your opening statement
Skip this nicety as it doesnt really apply, implies a familiarity which

you dont share, and may lead in a direction that you dont want or
cannot easily follow
Do ask if they control budget
Are they the right person to talk to? If so, continue the discussion. If
not, ask who is prior to moving on
Calling important points
You are NOT wasting the time of the

person you are calling: you are sharing
with them a potential service that could be
worth money to them.
Be fearless and have confidence in what you

are saying. Nervousness will lead to
disengagement
Ok. I have leads. Now what?...
Lead source
Qualify them!!
Qualifying requirement
Email / contact form Respond ASAP. If they provide a number, call.

Thank for reaching out
Offer times for a call
1st call
Establish rapport, but do not pander

Try to establish requirement, urgency and budget.
If budget is not forthcoming, share your minimums
if its too high for them, find this out early!
Goal of qualification = alignment

Leads - Inbound
Pricing and negotiation: a winters tale
The Tough Part: Closing Deals
How do you price
Pricing Two types of revenue streams (services)
Project
Audit
Account setup
Analytics install
Website launch
Landing page design
other
Recurring
Account
management
Analysis & reporting
Account optimization
Landing page & ad
testing
Other
The simple equation
Cost
+ Margin
To work at a profit
= Price
understand your costs!
Your first task
To price your services, you must

first know your true hourly rate cost
to deliver your services
.You may be very surprised by what you find out
The tough part: closing deals
Calculating your true cost hourly rate

1. Start with: annual wages
Add payroll taxes (employment insurance; federal social benefits; etc.)
2. Add: cost of benefits
Health care; life insurance; LTD; bonus; retirement; gym/wellness; etc.
3. Add: technology costs
Software licenses; computers; OE leases; IT support; mobile phone
4. Add: business costs (apportioned amount)
Rent; admin costs (HR, legal, accounting, admin assistants, sales, etc.)
consumables (paper; coffee; toner; etc.)
5. Add: other costs
Training; conferences/events; jury/maternity/legal contingencies;
6. Divide total costs by total productive (billable) working days
Total potential billable days = total potential days of work LESS (holidays; sick
days; vacation; learning time; wasted time)
Understanding costs lets do it together
https://docs.google.com/a/cardinalpath.com/spreadsheet/ccc?key=0Am0vOTQ66qzwdGF
2bUtGOFRNdXZacE1DSmJCUWFqY2c&usp=sharing
You may be very

surprised
Your second task
To price a proposal, you must first

know the true cost to deliver the
proposed services
.You may be very surprised by what you find out
Costs: factors to consider in the actual job

Resources
Who will do it (how many, what
level and what level of
commitment)?
Is external assistance required (for
skills or resourcing)?
Scope
How complex is the work?
Are others involved / what are the
dependencies / span of control?
Time
How long to do the work?
Is this a rush job?
Will staff need to work overtime?
Intangibles
Is the client high profile?
Is recurring business an
option?
Is there a prior relationship?
Other
Is there a request of
exclusivity?
Can you leverage this for PR or
a case study?
Resource & time commitments
Software licenses / costs
Pricing: an age old truth
FA S T
CHEAP
GOOD
You can only pick TWO

An important truth about pricing
You must understand and protect

your margins
.If you dont, youll end up working for free
Service pricing models Time & materials
Service pricing models - Performance
?
?
?
Warning: Be careful of things you dont control!
Service pricing models Profit Sharing
?
?
?
Warning: Be careful of things you dont control!
The psychology of pricing: Optionality
People prefer choices

If no options are available, they will want to have
some
However, if too many, these a barrier against
decision making
Theory of choice too much is debilitating and involves too
much cognitive effort
Intuitively, they seek guidance

Recommended; Best Value; Most Popular etc.
Example as applied to service offerings

Standard
Enhanced
Comprehensive
10% of spend
12% of spend
15% of spend
Account management
& optimization
Account management
& optimization
Account management
& optimization
Bi-weekly reporting
Bi-weekly reporting
Weekly reporting
Competitive research
or post-click analysis
Competitive research
or post-click analysis
8 hours ad-hoc support
The psychology of pricing: Anchoring
40,000
10,000
2,000
20%
1,69
80%
2.49
0%
0,99
80%
1,69
20%
2.49
20%
3,99
10%
1,69
70%
2.49
The psychology of pricing: Power of 9
Research conclusively demonstrates
Is a powerful number in pricing

Putting it all together Negotiation
ne-go-ti-a-tion (noun): a formal

discussion between two or more
parties, with the intent of coming
to a mutually agreed solution,
because each party has
something the other wants.
Negotiation Fisher & Urey: BATNA
B est
Alternative
To A
Negotiated
Agreement
Negotiations the hardest thing to do is walking away
Negotiations - Should you ever buy business?

Generally no, unless they are a marquee client, will work
with you on a case study or can use them to promote your
business (e.g. testimonial)
Pricing & negotiation Quick recap
1. You must earn enough to reinvest in yourself
Build better hunting tools
2. Dont be afraid to lose

business on price
3. Make clients happy to pay your invoices
and be the first one to tell

them if thats not going to be
possible.
Advertising agencies & fee$$$
5 Types of Advertising agency
Full Service
plan, create,
produce ads
Media buying
marketing
research
selecting media
strategic market
planning
direct market
promotion
programs
interactive
marketing
web site design
public relations
Creative & Digital

Creative
Ad creation
Branding
Online video
production
Photo shoots
Campaign
websites
Campaign
mobile Apps
Media
Media planning
Media buying
Media research
Digital
Web design /
development
Internet
advertising
Search engine
marketing
E-business
consulting
Digital media
planning
Social media
Digital PR
Specialized
Copy-writing
Direct marketing
/ Email
marketing
Public relation
Communication
Search engine
marketing
Search engine
optimization
Social media
Online reputation
management
Web agency
Affiliatiation
130
The evolving agency commission model

Agency
Commission
FeeBased/Retainer
Performancebased
Many agencies
started to give a
percentage of their
15% agency
commission back
to the client.
Varies greatly
depending on scale
of spend.
All agency
commission is
returned to the client
and remuneration is
based solely upon
specified
performance metrics
The portion of the

15% commission
that the agency
actually keeps
ranges from
0 -15%
Usually based upon

costing out
provision of
resource &
overheads + profit
increment
e.g. click volume

targets, sales
achieved
Hybrid
A combination of
any of the three
standard mechanics
e.g. commission +
fee, fee + bounty
per sale achieved
Billing Model
Percent of
Spend
Flat Fee
Performance
Based
Revenue
Share
Overview
Most common billing
model
Pros
Cons
Agency incentivized to grow

book of business as much as
possible
Mostly acquire clients with

large existing AdWords spend
(not eligible for our channel)
Client pays flat fee on

monthly basis
Agency incentivized to
onboard lots of SMBs
Fee is typically
determined by client
investment (tiered)
Attractive for small business

in our model
Agency may not be

incentivized to increase
AdWords spend
Paid per lead/sale

generated by online
marketing efforts
Simple ROI calculation for

the client to determine
profitability
Trying to upsell clients into

display due to contract
restrictions.
Mostly volume-based
Agency incentivized to
significantly increase spend
once profitable
Hard to discuss brand and

engagement
Negotiate % of spend
on a client by client
basis
Paid a % of revenue the

client makes off of their
online marketing
efforts with the agency.
Appeals to ROI driven clients
No contracts can lead to high

churn
Hard to upsell into branding

or engagement initiatives
Focus on brand and not long
tail keywords because better
ROI.
Market positioning = managing a business
Competition
Look around the room
How do you stand out?
Managing Day-to-Day
Your website !!!

Building sales decks & collateral
Sales
Responding to Requests for Proposals (RFPs)
Bringing in the business
Proposal and contract writing

Using Master Service Agreements (MSAs)
Legal business considerations
How should I bill my clients?
Managing Day-to-Day
When do we need to hire?
How should a team be structured?

When should we outsource?
Staffing
How do we train and onboard new employees?
Whos going to do all of this?
Managing Day-to-Day
Copy writing is tough AdWords ads can be tougher!

Graphic designers for display formats?
Programmers for display formats?
Creative
Client approval / feeback process?
Whos building the ads?
Managing Day-to-Day
Reporting
What formats are actually USEFUL to clients?
How often do we do it?
Meeting with clients to review reports & discuss action items
Using 3rd party reporting & dashboarding tools

Allocating time and resources to reporting a line on the invoice?
Managing Day-to-Day
Scaling up & growing
Putting processes in place
Adding people to a growing organization
Using technology (bid management) to gain efficiencies
Putting in place a business infrastructure
Managing Day-to-Day
Final tips
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Sharing Experience

Sales Pitch and Sales Strategy

Hello, my name is Gabriel

Fast Evolution: from 2009 to 2015

Semetis: Multiple Services

In-house Technology + SaaS for agencies

A Portfolio of International Clients

Maintain happy clients

Client acquisition vs Market positioning

Part2 Prepare beforehand

Why do Companies Hire Agencies?

Specialization & Expertise

Prospective & Ideas

Whats YOUR value proposition?

YOUR case studies

Semetis Case study on video: YouTube.com/semetis

Do Your Homework: The site

Macaroni & Cheese

What are the conversion actions?

Is it possible / clear / easy to convert?

Are there landing pages you can use for

Do Your Homework: Search

Whos the competition?

Are there other advertisers in the space?

Are there negative keywords you can identify?

Do Your Homework: Keyword planner

Is there a good search

Whats the competition

Is there anything you can

macaroni and cheese

mac and cheese

Do Your Homework: Google Insights for Search

Do Your Homework: Google Insights for Search

Do Your Homework: Look at their existing Google Adwords

Do Your Homework: Look at their existing Google Adwords

Page not found

Do Your Homework: Look at their existing Google Adwords

Do Your Homework: Look at their existing Google Adwords

Build a tailor-made offer that cant be refused

Avg. Cost Per Click

Expected Conv. Rate

Value Per Conversion $50.00

Skills needed for sales

Understanding how you want to sell

Who actually likes sales?

but its the oxygen that feeds

Understanding how you want to sell

Principle #1 Commit to the Practice of Listening

The most important tool in

Listen > Talk

Principle #2 Practice Radical Honesty

Understanding how you want to sell

Radical Honesty requires

Understanding how you want to sell

Principle #3 - Practice Knowing Thyself

Understanding how you want to sell

Dont get too far over your skis

Understanding how you want to sell

Principle #4: You need a story

Work is not procured

Margins squeezed by lower

Understanding how you want to sell

The story is important