Many agencies lack a cohesive sales strategy, and as such are at the mercy of workloads that are stuck in a feast-and-famine cycle. Without a consistent, predictable workload, it is difficult to plan for agency growth, or to understand if and when you need to hire.
A resource management tool is essential for providing agency owners with at-a-glance insights into their agency’s workload and team. But it’s just as useful for your sales team, to help develop their sales strategy by identifying what works well for your agency, and what doesn’t. Today I’m sharing 5 tips to help you use resource management to transform your digital agency’s sales strategy.
1) Identify Profitability Trends
Resource management will provide you with the insights you need to create a data-driven sales strategy. You will be able to identify the customers, projects or types of work that are the most (or least) profitable for your agency, and use that data to shape your sales strategy.
Once your sales team understand which projects are most profitable, they can adapt their sales activities so that the majority of their effort goes in to targeting similar companies or types of project, rather than focusing on securing types of work that are normally less profitable.
2) Capacity Planning
A resource management strategy provides your sales team with visibility into your whole team’s workloads. You will know ahead of time when projects are coming to an end, to help you avoid the famine cycle in your workload.
By sharing this information, it will help to align the aims of your sales team and execution team: the sales team will understand how able your execution team is to take on new work, and so can plan their sales strategy and sales campaigns accordingly.
3) Fine-tune Your Project Quotes
Many resource management tools have time tracking capabilities, which are essential for providing accurate project quotes. Even if your agency doesn’t use the billable hour pricing model, you still need to track employee time so you can understand whether or not your projects are profitable.
When quoting for new projects, you will be able to examine your previous project data to get an informed idea of how long particular tasks will take. This data-driven approach to project estimates will help to improve the accuracy of your quotes, meaning you’re less likely to over- or under-charge for your services.
4) Improve Your Pricing
Can you afford to raise your agency’s prices? Or, more importantly, can you afford not to?
Resource management is designed to give you clear insight into the profitability of all your agency activities. As well as using this data to shape your sales activities (by helping your sales team understand where to focus their attention), you will also be able to understand how increasing your prices will affect your agency’s profitability.
If most of your agency projects aren’t profitable, it suggests that you need to raise your prices in order to become profitable.
5) Create More Realistic Sales Targets
Your agency’s sales targets play a large role in shaping your sales strategy. With good resource management, you will be able to create more realistic sales targets, which will tie in to your overall sales strategy. This is because you will have access to the data about your agency’s past projects – such as profitability, scope and type of project – which you can use to create goals and targets based on real data.