Account Team Archives - Page 2 of 2 - Agency Management Institute

How Many Clients Can an Account Executive Manage?
Gallery
How Many Clients Can an Account Executive Manage?

Account Team, Agency Operations, Money Issues

How Many Clients Can an Account Executive Manage?

One of the questions I get from agency owners all the time is "how many clients can an account executive manage?" On smaller accounts or where you don’t have multiple levels of AEs working on the same client, it’s pretty easy. There are two different ways of looking at it. The first one is an AE should be able to manage 5 – 7 times their annual salary. So if someone is making 50K, they should be able to manage between 250 – 350K. That means they can handle the account/s AND have time to work ON their book of business to grow the book of business by at least 10% annually. The other way to look at it is — it is a very rare AE or client type/style that would allow an AE to effective manage and have time to grow more than 500K in AGI annually. But when you start thinking about having an account coordinator and other folks on the same account, now it gets a little muddier. In theory, a client that requires that much attention is more layered, complicated etc. And there’s some inefficiency/duplication in the hand offs between the AE team. For example…two of them in a meeting, rather than just one. So when you have two account people of different levels on the same account, It’s more than likely they can’t handle much more than 5 times their combined salary. I’d say the same is true of three account folks. Depending on their maturity level and how much else they’re juggling — that should hold. In most cases, AEs who can't manage that much business are struggling in one or more of these areas: They can't [...]

By Drew McLellan|

Solving Wicked Problems for Your Clients with Gareth Kay
Gallery
Solving Wicked Problems for Your Clients with Gareth Kay

Account Team, Client Relationships, Evergreen, Industry Trends

Solving Wicked Problems for Your Clients with Gareth Kay

Every agency wants to be their client’s go to partner. It’s not enough to deliver top notch creative or marketing strategy. Today’s clients (as we learned in our CMO research study) want an agency who can think beyond marketing and help them with solving wicked problems. My podcast guest, Gareth Kay, and his company Chapter, does just that. Tightly defining the fundamental problems that need to be addressed is what his creative business does best. They weave this “solve wicked problems” attitude into every aspects of their business and if that’s not what a client wants them to do – they actually offer to help them find a better fit. The result? They don’t just change their clients’ messaging or marketing campaigns. They change their business by solving wicked problems. Gareth comes from a traditional agency background but when he and his partners broke off to start Chapter, they knew they wanted to do something different. They’ve successfully made this transition and you can too. Gareth and I cover the following: Gareth’s decision to venture off and start Chapter What makes Chapter truly unique How to build a business model and hire employees when the work you do is very diverse Becoming a client’s partner through absolute transparency How to generate new business when you’re in the project based business Creating ideas and solutions vs creating “stuff” How Chapter develops and retains its staff The importance of transparency with your employees How Gareth’s perspective has changed since making the jump into ownership Things agencies can do to move away from widget sales to selling ideas and problem solving Gareth Kay is a strategist by trade. He’s co-founder of Chapter, a creative business partner dedicated [...]

By Drew McLellan|

3 mistakes your AEs make that cost you money
Gallery
3 mistakes your AEs make that cost you money

Account Team

3 mistakes your AEs make that cost you money

As an agency owner of 20+ years – and someone who guides small- to mid-sized agencies in my role at Agency Management Institute every year – I spend time with hundreds of owners and their employees I get the worries and the risks that come with owning your own agency. I’m a firm believer in the idea that if you’re willing to take the risk of owning an agency, you deserve to reap the benefits of that risk. There are a lot of different pain points for agency owners but one of the biggest is that they’re frustrated that their account service people aren’t quite where they want them to be. They’re not horrible but they’re not amazing. They don’t think and act like an owner. They take orders rather than lead the clients. They are quick to write off money or capitulate on an estimate and they drop too many balls. Every one of those less than stellar moments costs an agency (and the agency’s owner) money. And worst of all – every one of those less than stellar moments is 100% avoidable. That is why I’m inviting you to my FREE workshop on Tuesday, August 25th at 12:00 p.m. EST entitled, 3 Mistakes Your AEs Make That Cost You Money I’m going to show you some key spots where your AE is costing you time, money, clients, and in some cases – good employees. It’s time to plug that leak and re-capture that revenue. In the webinar, I’m going to focus on three key areas: 1) Communications with both the client and the internal team. Your AEs are running so fast that they carry the most vital information in their head. They leave [...]

By Drew McLellan|

What is an Account Executive in Marketing?
Gallery
What is an Account Executive in Marketing?

Account Team, Advertising Agency Training

What is an Account Executive in Marketing?

What is an account executive in marketing? What does account executive training consist of? In most agencies, an AE's first day consists of: A "fill out all the paperwork" meeting with your HR/accounting person A quick tour of the office, introducing the new account executive to the team as you walk through A lecture about protecting passwords from your IT staffer And a reminder that their first client meeting is at 10:30 am. That morning. No worries -- you'll train them later, right? Unfortunately, many an agency has incredible intentions of starting a training program for their account executives but usually client work trumps training and it doesn't happen. One of the reasons it doesn't happen is because usually the agency owner is the one who is supposed to develop the training. Enough said. But let's say you really are serious about developing an internal account executive training program. What does it need to include? What to Expect of an Account Executive in Marketing Understanding the big picture: Why does a client hire an agency? What does an agency owner look for in an account executive How does an agency work and make money Agency accounting (AGI, etc.) How does an account executive influence AGI for better or worse Getting the work done: Work flow/process inside agencies Serving as the client advocate inside the agency and the agency advocate with the client Helping clients be a better client Helping the agency become invaluable to the client The money pits and how to avoid them The business of business: How businesses make money Business metrics/KPIs The different levels within a company and what each of them can do for/with the agency Identifying business problems and delivering [...]

By Drew McLellan|

Account Executive Training
Gallery
Account Executive Training

Account Team

Account Executive Training

We just wrapped up one of our account executive training workshops -- we call it the Advanced Account Executive Bootcamp. A great group of dedicated account executives who all want to lead their team to even greater success. Whether I'm doing the advanced training or the Bootcamp for more entry level AEs -- we spend quite a bit of time talking about being a strategic thinker. Why? Because that seems to be agency owners #1 complaint about their account executive team -- great at following directions and taking orders but not so great at leading the client and growing that business. Are your AEs asking the right questions? I'm guessing not. Luckily for you and your agency, account executive training can fix that. I think there's a simple reason why your account executives are not performing as well as you'd like. They don't ask enough or the right questions. When a client calls and tells an AE they need to open a new project, the AE automatically goes into order taker mode. If they ask any questions at all, they're tactical questions about the deliverables the client is asking for. Most AEs have not been trained on how to step back and ask the why questions. They aren't comfortable suggesting that what the client is asking for might not be the right call. And they rarely know how to take that tactical request all the way back to the client's goals and objectives. Truth be told, depending on the sophistication of the client -- they might not know the answers if your AE did push back. But that's where the opportunities are buried. The sophisticated client will elevate your AE's status from vendor to thinking partner [...]

By Drew McLellan|

What clients want from their advertising agency
Gallery
What clients want from their advertising agency

Account Team, Client Relationships

What clients want from their advertising agency

This article discusses client retention strategies, and explains what clients are truly looking for from their ad agency. In our AE training (both the bootcamp and the Account Service Advanced Training) we ask the participants to make a list of what they think their clients want from their advertising agency. It's a rare AE that thinks to actually ask their clients what they're looking for from their agency or agency liaison. But the answers often reveal that disconnect. When we asked CMOs, business owners and Directors of Marketing what they were looking for from their agencies, here's what they said: Industry knowledge Clients expect their advertising agencies to either come to them with a deep level of expertise in the client's business/industry or else, get up to speed in a hurry. Even more so -- they expect the agency to stay current and to make sure the client does too. It's pretty difficult to bring proactive ideas and solutions to the table if you don't know the game that's being played. Business Acumen In today's world, marketing touches every aspect of a client's business. Clients expect their agency to understand their entire business model from R&D to distribution. They need someone at the table who can recognize and solve business problems. Accountability Clients need their agency to do what they say they're going to do. That means bringing projects in on time and on budget. It means owning a problem until it gets resolved. It also means the flip side -- clients want an agency to hold them accountable too. They need to be nudged now and then to keep their eye on the ball and do their part in making the work a success. Accessibility [...]

By Drew McLellan|

Are agency AEs underperforming because of their boss (yes, you agency owner)?
Gallery
Are agency AEs underperforming because of their boss (yes, you agency owner)?

Account Team, Money Issues

Are agency AEs underperforming because of their boss (yes, you agency owner)?

A couple weeks ago, I spent two days leading a workshop for account executives. In AMR's AE Bootcamps -- we talk a lot about how an AE is basically running a division of the agency and is responsible for the financial health of their division. Our goal is to help AEs realize that they have a direct impact on the financial health of their agency. They're not order takers -- they are business problem solvers who sell measurable solutions. I want them to understand their job is to mine for gold. Gold to put into the agency's pockets. Not fool's gold (conning clients into spending more) but earned gold from helping clients' grow their business. So within the first hour or two of the workshop, I ask "how many of you know the exact amount of AGI (adjusted gross income) that you are responsible for generating out of your division every month?" Two hands went up. Two. Out of a room full of employed account executives. Owners complain that their AEs can't get to the C suite, or don't sell additional services or can't grow an account. Honestly -- the blame for all of that sits right at the feet of the owner. Anyone can take an order. If you want your account executives to actually be poised to help you grow your agency -- you need to give them three things. You need to teach them business and marketing principles if they don't already know them. You need to give them systems that support smart agency management like marketing briefs, change orders and a hierarchy for getting sign offs before work is done. You need to give them financial goals and financial incentives for [...]

By Drew McLellan|

How do you train your account executives?
Gallery
How do you train your account executives?

Account Team, Employees

How do you train your account executives?

If you were being truthful about account executive training in your agency -- you just said, baptism by fire. We hired them and on their first day...took them to a client meeting and it was off to the races. The good ones thrive and survive and the ones who can't cut it, fade away. But we're lousy at training new people. That's an ugly truth about our business. And it's not done out of disregard or cruelty. It's just the reality for small and medium sized advertising (marketing, PR, digital, interactive) agencies. There's no training program in place and we're hiring them because we need their boots on the ground. Now. In our two-day Account Executive Training Bootcamps (check our AE Bootcamp schedule here) we ask the participants to create a list of the top things a client expects of them and the top things the agency owner expects of them. Guess what -- they get it wrong. No big surprise considering we throw them into client work and usually, if they're new to the business, they begin managing project details, taking orders and creating a good relationship with the client. So they think that's at the core of their job responsibilities. Those things are certainly part of the job -- but would they be on your list of the top five things you want from your account executive? I get that you don't have a developed in-house training program and can't take the time to create one, let alone implement it. But, if you're not going to do that -- at the very least, take some of these steps. Send your new/young AE to account executive training: Whether it's our AE Bootcamp (we've been conducting this course for [...]

By Drew McLellan|

Agencies need to stop hiring “nice”
Gallery
Agencies need to stop hiring “nice”

Account Team, Employees, Evergreen

Agencies need to stop hiring “nice”

One of my pet peeves is the hiring practices of agencies -- we need to stop hiring "nice". Earlier this month, we kicked off a conversation about why agencies find themselves relegated to vendor status. If you remember, we identified 3 causes. The economy — workforce reductions, budget cuts and overall fear (out of your control) Agencies willingness to behave like a vendor just to get the project (within your control) Agencies hiring “nice” account executives who are order takers rather than smart business people (within your control) In this post, we'll tackle the hiring "nice" issue that many agency owners and Directors of Client Services seem to struggle with. Every agency owner worries about how solid their client relationships are and who is tending to those clients. We want clients to feel like they're the agency's only focus. As a result, we've often hired people who are relationship nurturers and good at customer service delivery. There's nothing wrong with those traits. But they don't match up with what clients tell us they want. In our AE Bootcamp workshops, we teach AEs what their clients expect from them. Here's what our research revealed clients want in an AE: Knows the client’s industry and markets Makes their job easier Is organized and dependable Is empowered to make decisions Demonstrates a passion for solving problems Is willing to be treated as a consultant and a vendor Is not learning on the job I don't see nice, friendly or even a good relationship builder on that list. It doesn't mean those traits don't matter. It means those traits are tables stakes -- the givens. Clients think of those as a "duh" not a point of difference. What they're [...]

By Drew McLellan|