1 – Differentiate your agency
Specialists and brands that offer high quality service are often the only ones who can charge premium rates: this remains one of the best ways to increase the initial pricing of your services.
To justify your prices, you must therefore adopt a differentiation strategy. Indeed, many customers are wondering why choosing your agency over another and this is a question that many agency owners find difficult to answer.
But how to differentiate? You may want to consider specializing in a particular industry, adopting a marketing strategy that targets a specific audience, or developing a specific range of services. You can also stand out by writing a book, publishing research reports or speaking at events.
Define the reasons that will encourage customers to choose your agency and you will have a much better chance of justifying higher rates.
2 – Understand the psychology that determines a pricing strategy
To develop your accounts receivables, you may need to make some revisions to pricing strategy. How the public perceives the value of your business is just as important as your pricing choices .
This notion is even more crucial if you offer different forms of service contracts. The number of formulas you have, their names and the way you present them are all factors that influence the choice of customers.
If you have on your website four different formulas (for example: Beginner, Basic, Pro and Company), you must highlight the most suitable formula for your customers. The different formulas must explain in detail the needs they meet, depending on what type of business.
Grasshopper , a virtual phone system provider, offers an alternative to this presentation. You can use it as a guide for defining your price range based on your customers’ growth objectives or the timeframes they want to achieve: for example, high growth, moderate growth, fast or very fast …
In addition, if a customer is unhappy with their growth level (in other words, if they want to get better results faster), you still have the option of offering a more aggressive formula.
3 – Adopt a strategy of upscale
You should have a list of added services to offer to your customers that are not included in your basic package.
These services and projects can be added to your customers’ monthly contract costs as they enhance their marketing communications strategy. They also make better use of particularly important campaigns.
This list can consist of elements such as sales support services (commercial presentations, analyzes, case studies …) or integration technologies (call tracking, predictive lead scoring, campaign management paid advertising, integration of an online shopping service …).
4 – Take a strategic approach
Marketing agencies too often rely on a tactical approach to their upmarket strategy: support for marketing on social networks, building a new website, providing content services …
Do not take a tactical approach with your customers but offer to develop their accounts with solutions to increase sales, improve retention and conversion rates or create a better customer experience. Talk to them in commercial terms.
Your first proposals will probably not meet the immediate craze. However, you are showing your clients that your efforts are focused on putting in place new long-term strategies to help them grow their businesses as a whole, not to list the services you could add to their monthly contract.
5 – Adopt an Accounts Receivable Development Process
One way to actively develop your customer service contracts is to develop an internal process for evaluating customer accounts annually to determine if there are growth opportunities.
As the growth leaders of the companies you work with, your account managers need to not only ensure that your customers are happy, but also that they are profitable for your agency.
Your account managers must perform an annual review to analyze the positive and negative aspects of their collaboration with each of their clients: do they work with other agencies? Do they have an internal marketing team? Are they outsourcing more than the previous year? What services would they like your agency to have?
Develop a checklist that each account executive will be required to review annually with their manager to make sure that you do not miss any upscale opportunities and maximize the profitability of your collaborations.