Mark Mason's Comment regarding the undesirability of pitching raises some further interesting issues, (PM, September 18).
If it is true tat most pitches are won on the basis of the chemistry and expected working relationship rather than the work (and it is our experience of auditing failed and successful pitches that this is the case), then it's equally true that when relationships break down, it's not usually the work that's to blame either. More often than not, it is a function of (poor) services, or because of the emergence of a "perception-reality gap" in the relationship, that means the agency is consistently under-delivering versus client expectation.
Furthermore, the notion that agencies should refuse to pitch on principle is admirable but not rooted in reality. Most agencies love to pitch as it gives them a chance not only to win the account up for grabs but to beat other agencies in the process. Winning (especially a piece of business from a wholly new client) is emotionally very important to agencies, which is not surprising when you think how competitive agency people are.
This whole attraction of "the new" is exemplified by the celebration of new business wins. The acquisition of a new client usually spawns "free drinks in the pub" wheareas a new project from an existing client usually warrants a note around the agency.
Yet, sexy as pitching is, it comes second as a business development tool to the maintenance of solid relationships with existing clients. They, after all, pay the wages and consistently delivering against their expectations is significantly more likely (indeed, our research suggests seven times more likely) to encourage them to give the agency incremental business.
Minimising churn and winning new assignments from existing clients gives a significantly better return on investment than constant pitching against other agencies. But while a new business budget is deemed essential, how many agencies set aside a client retention and development budget that is more than just T&E?
Answers on a postcard, please.
Carey Evans
Relationship Audits & Management
PRECISION MARKETING 02/10/00
