Speed-Dating: Is This the New Normal?

Sadly, I think so, although I hope it's temporary. I've been witnessing companies making agencies jump through all kinds of hoops lately...just because they can. It borders on bullying, I tell you. Lately it's gotten to the point where we've found ourselves pitching projects--with quotes, spec work, detailed write-ups and rationale. All this, not for a relationship, or the chance to be a company's AOR, but for a one-off. I applaud your decision to withdraw. If more agencies assert themselves like that, maybe, collectively, we'll be able to put an end to this kind of counterproductive foolishness.

Millie, I commend you and your team for seeing the "red flags" in this RFP pitch process. It takes a very strong management team to decide not to pursue a client who's been on its list of "passion prospects." We too have fallen pray to the sirens of the agency review process only to feel the pinch of a long, drawn out pitch that we new we were a long shot for from the get go. You learn from your lessons and move on, or in your case, look at it as money you didn't waste in personnel time and what hopefully ended up in a long relaxing July 4th weekend instead of a working weekend. Is this the new normal? Unfortunately I've always felt that was the norm. I've never expected anything but surprises in any agency review process.

The agency business is one of the last industries that regularly devalues itself by giving away its intellectual property for free (at the pitch). No wonder little respect is given to the value of the relationship.

http://domusinc.blogspot.com
http://www.domusinc.com

As a new business development expert, I say to Millie Olson and others who opined on her column, "NO! This is not new business, 2009 style!" The recent anecdote Millie shared with us is more the exception than the rule. All RFP and pitch situations always leave something to be desired, but it is my experience that the vast majority are similar in nature and process. In any case, whether an agency chooses to participate is agency management's call ... hopefully guided by a new business pro within the agency who can separate reality from wishful thinking. bcrandallnyc@aol.com

Good for you for declining the pitch. I have far more respect for you and your saying "no," and then explaining your (very sober) reasons why, than I do for Ignited and their recent decision to answer a Zappos cattle cattle call and then blog negatively about the brand and the RFP process only after they lost the bid. Good for you.

For the time being, agencies will have to accept that certain fundamentals of the agency/client relationship have changed. With the economy the way it is, smaller agencies are suffering badly and offering ridiculously low prices just to keep themselves busy and grab some quick cash, effectively commoditizing the industry. At the same time, client budgets have not only dropped, but their goals have changes as anxious CEOs become less interested in long term brand building and more interested in short term sales wins. The net effect is that agencies will need to jump through more hoops for less money. At least for now.

It will change. Part of that change will come when the economy turns a corner, budgets grow and long-term strategies are back in focus. The other part of that change will come as more agencies like your own simply turn down RFP requests and find new, more innovative ways of getting clients, helping combat industry commoditization.

Jason Miletsky
CEO, PFS Marketwyse
Author, 'Perspectives on Marketing' and 'Perspectives on Branding'

http://www.getperspectives.com

http://twitter.com/jason_miletsky

The theme reflected in virtually all these responses is clear.. this is an agency industry self-inflicted wound. The "We can get it for you cheaper" tactic for account acquisition has led to a devaluation of both the agency's services and the media-vendor products they subsequently squeeze to achive promised low-ball cost efficiencies.

Once proud agencies have become chop shop buying services, that live in terror of the client lifted-eyebrow and the next cheaper deal that costs them the account.

There is little room for creativity or long-term strategic-planning client partnerships under such conditions. A turn in the economy will do nothing to fix this problem, it will only better finance the same old practices.

Is there a shop out there with the guts to say "enough" and earn back a little self respct?

If the brand was as desirable as you suggested, my guess would be that their CMO (or equivalent) had (1) f**ked-up the relationship with their last agency, and (2) let their brand-ego go to their head and let them think that they were entitle to get agencies to jump through hoops for them. I think you made the right call. If that's the starting point of a relationship, just imagine what the honeymoon is going to be like -- a whole lot of pneumatic, anti-climactic, doggy-style.

But then again, agency life is a lot like dating (http://is.gd/1R6Ys):

"In the end, maybe it works out, or maybe it doesn't. Maybe you're both looking for different things in a relationship. Maybe they're not your type. Maybe they're just not that into you."

I commend you on declining. This industry will only see a shift when, strong, brave, quality agencies stand up and demand respect by putting their foot down and saying no. At this time, it is best to embrace the confidence and remember you said no to the ridiculous request- because you are good and better will come from it.

Congratulations!

Worse than this NOT being a new story (or a story about 2009), there is the matter that most likely 9 out of 10 agencies stayed in the pitch.

Same as it ever was...

Kevin Horne - NYC

I admire your courage to decline this RFP although I dare say it is perhaps because you have enough clients to go round. I am struggle with my team now to land a major account and would have jumped to get this business. About three weeks ago we had to remain at the office till 3.30am to conclude a pitch document we had to present at 8.30am the following morning. This is a client we have done business with for not less than 10 years, mind you. My point is that sometimes you have to go through hoops just to get or keep that account that can make or unmake your agency. It has to be the new normal in this day of recession.

By Richard, Port St. Lucie, FL

Ms Olson's agency must have done some "courting" prior to making the short list. Actually, the prospect's requests seem well thought out: Determine how "passionately" the agency wants the business; See what kind of relevant work/thinking the agency does under pressure; Observe the agency's "account team" in action.

Hardly the time to climb onto your high horse.

You are witnessing the market at work. There is an oversupply of advertising agencies. Period. Two types will survive: the most scrupulous and the least. Each shall find their own.

I commend you on declining this bid. We ran into a similar issue just a month ago with a pitch. Against our better judgement we pursued, even visited the potential client 2 different times out of state. Jumped through hoops all to be told we didn't win. All of this for a project not even AOR! Next time we will follow our gut feeling. Once again, I commend you!

-Mat
http://wearegarrett.com

Thanks for sharing, Millie. I applaud your courage to walk away, not because you "made a statement" or because agencies must band together to stop outrageous selection processes - but because it was just that - a choice - a very hard choice (as this was a "dream" client). You did so based on who you are; what was best for your firm - & even best for the client. Well done.

Most articles & comments on this subject cite the same things: outrageous processes; unlevel/unknown criteria; unfair outcomes; unrealistic objectives; & unreasonable financials. None of this is new. Interestingly (or appalling) is how agencies cry foul, yet few seem to hold up a mirror. Many agency posts - few/none from clients. Hmmm.

I cite a couple of comments opined over & over on this subject: a) "... smaller agencies are suffering badly ... , effectively commoditizing the industry."; b) "It will change. ... ...change will come as more agencies like your own simply turn down RFP requests & find new, more innovative ways of getting clients, helping combat industry commoditization."

Industry commoditization did not start with small agencies being "forced" to work for scraps. Nor is this an anomaly limited to the present economy. Based on my experiences (interfaces w/ ~600 agencies & 40+ Fortune 500 companies), this "trend" actually begins with the agency community itself. To clients, the vast majority of the industry (literally 95+%) appear identically positioned. Sameness abounds: strengths, people, buzzwords, clients, "pretty pictures"/reels, creative, insights, strategic. Sadly & ironically, even the differentiators appear identical in the noise of the industry... effectively commoditizing the industry, in the eyes of most clients.

2 additional factors complicate things: 1) "one-stop, we-do-it-all" services - everyone seems to offer "one-stop, full-service, integrated, holistic communication services", irrespective of their origins or their true competencies - spanning multiple industry segments. Core competencies are not discernible. Today, competency is defined more by breadth, than depth; 2) the plethora of inexperienced client decision-makers (i.e. junior marketers, purchasing "experts" new to creative services). NOTE: clients are certainly not lily-white in this conundrum.

But it is also not the client's responsibility to fund inefficient / ineffective enterprises. Sadly (for both sides), fair is often defined as "the going rate"... while clients may make demands - someone has to agree to do it - or no deal.

As a result, clients feel validated & justified in their actions. Simply... oversupplied, homogeneous, undifferentiated capability is then differentiated primarily by "price". Therefore, little need to penetrate the industry - as they have been trained & conditioned (by the agencies) that these will be similar. They hear the complaints & chatter - but still no one steps up with a truly differentiated offering. Why is this??

As cited by other posts... change will indeed occur (as many emphatically proclaim). But, NOT because agencies refuse to join the cattle-herding - there are just too many agencies (more than 70,000 companies, in the US alone, who offer some sort of marketing-/creative-related service). It will change when clients see unique, differentiated propositions that deliver business results & create value (for the client's brands).

Very interested to continue to learn (john@getabetterview.com). Thanks.

As a direct marketing shop we are often asked to do the miraculous at short notice, with little insight into the strategic thinking of our clients.

I think the solution is to define the type of company you wish to do business with, not just the brand. The brand should reflect the values of the company behind it, but this is not always the case. Define and understand the values of the company, setting the brand aside, until you understand the organization fully and can align with its team. Afterall, if you align closely but critically with your client, they will ask you to help define the brand in the marketplace.

I'd like to admit, Millie, we're one of the agencies that said "yes." Don't hate me too much.

I have for many years avoided any pitches that asked for speculative work in order to get the business. It was against my principles. It was too expensive a gamble of my time and my team's. It was arrogant to assume I could solve a client's business problem without working closely with their team to really understand it from all angles. I had --and have--a hundred reasons why this is a bad idea.

That said, you do occasionally come across brands you love and want to work with so badly that you make exceptions to your rules. In our case, this was one of those brands. I wanted to work with them. I could see the way forward for their brand. I knew I could hit one out of the proverbial park for them. So we did it. Even though we knew the timeline was too short, and the odds were not great. We went in eyes open, took the risk, and we lost. No regrets.

I'd like to think we're not bringing down the business with this very small and very personal decision.

There are two issues here. One is the decision whether or not to devalue your services to win a client, which an agency should never do. The other is training ourselves to better muster a quick response to a pitch request.

I certainly don't love getting those Friday-afternoon-before-a-holiday-weekend pitch invites (and there have been many), but in my experience, we've often done our best work when we've had the least amount of time. This leads me to think that maybe we as agencies have an opportunity to streamline our pitch processes and learn to tell a great story without weeks of preparation. Most of us are guilty of trying to shove more content into a presentation than the client can really absorb. And, yes, often the client asks for an unrealistic agenda for a 60 or 90 minute meeting. But, if we let go of past models and apply our creative thinking to the way we pitch, we might come up with some surprising and effective new techniques.

And if it that allows us to pitch more frequently and more effectively, then maybe those RFPs in our in-box on the Friday before July 4 won't be so scary.

It's the Catch-22 of searches - how much time do you really want an agency to have to do the assignment?

We've run searches that have stretched out because of scheduling conflicts on the client-side and what happens is, the agencies end up investing more time and money in the process than they should for the size of the account. At least limiting the time means an agency can only invest so much in pursuit of the business.

However, we have seen clients expecting to do major searches in a couple of months. We try to work around our client schedule, but as Millie noted, you need to have enough time to allow the agency time to work. Rush a miracle, get a rotton miracle.....

The missing link is the lack of understanding of what an agency does. So long as agencies accept this and make things happen however they can, the clients are just going to demand more.

Anne Wittle
The Bedford Group
www.bedfordgroupconsulting.com

There seems to be a growing obsession over the process. Agencies constantly talk about the need to truly differentiate, yet we are all supposed to conform to the same sacred pitch process?

Is this a crusade?


Here is the proper sequence that we all must follow:
1. Prospect calls us out of the goodness of his/her heart; sets appointment.
2. Agency shows other work done, but does not disclose any relevant creativity whatsoever.
3. Prospect hand-delivers a letter of appreciation and graciously asks if agency will represent said prospect.

(Cue the Kenny G music.)

I'm sorry. It all just sounds a bit pretentious.

We don't have to give away the farm, but I'm tired of the condescending gospel process by which so many agencies think all businesses must abide.

You're right. What else could we possibly do besides RFPs except using Google, Facebook, Twitter, LinkedIn, captivating blog posts, compelling White Papers, relevant e-newsletters...

You can choose to start conversations and build credibility in a social media community of potential prospects or you can keep filling out more wing-and-a-prayer paperwork.

I'll be going with the first option, thanks.

Dan Gershenson
The Creative Underground
http://twitter.com/DanOnBranding

I think Dan totally hits the nail on the head. As long as we wait for the RFP to land, we're screwed. But it's not just us, RFP's are a really very poor tool for our clients as well. Their using something best suited to buy paper for choosing the people who play a huge role in defining their public face. That seems dumb to me.

But it's like, if we're so smart about changing peoples minds, should we be getting out in front of this and actively provide an alternative to the RFP rather than having to choose between giving up work, or just accepting a broken system.