Join our Waitlist for Expert Advice!

Get the Most Out of Your Marketing Agency in 5 Ways Hiring a marketing agency is an exciting experience for a business, but don't get overzealous.

By Erik Huberman Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Pixabay

The minute you hire a marketing company, you're itching to dive in. Time to maximize your advertising and public relations dollars and finally build some brand equity, right?

The short answer: Yes, absolutely. The long answer: Be patient. As tempting as it is to hit the ground running, it'll be better for your company in the long term to solidify your strategy first.

To maximize return on investment (ROI) down the road, share these five data sets with your new agency.

1. Your current marketing mix

Tell your agency about what aspects of marketing you're already tackling and what you hope to accomplish. Too often, I hear from clients, "Oh yeah, we're doing marketing. We're running search engine optimization campaigns." When I ask what else, they tell me, "That's it." Unfortunately, by limiting their focus, those clients are missing opportunities to convert potential customers into sales.

After talking through your current approach, your agency will be able to identify holes in what you're currently doing, as well as help you explore other key areas. For instance, maybe you produce a lot of written content, but video would be better for some of your target audiences. You might think you know what you want, but this information allows the agency to determine if what you want is what you actually need.

2. The makeup of your team

You need to have the bandwidth to execute your marketing agency's new plan effectively. Examine your own team to help optimize both internal and agency talents. By smoothing out internal processes from the start, you won't have to backtrack later and fix stopgaps and other communication issues.

Often, it's intermediary project managers who hold things up. Maybe they don't understand best practices, or perhaps they haven't fully bought into implementing a certain tool. As a leader, you likely don't see your marketing team in the same light an agency does. Figure out what your team and the agency require from each to produce good work together.

Related: Think Like a Company's Marketing Director

3. Overall site analytics

Share your current conversion rate so the agency's team knows what to look for. How many of your sales are coming from Facebook? Can you clearly see the details of where you're getting your business? Asking such questions demonstrates whether your site is helping to properly convert leads into sales.

It's easier than you think to get those metrics in place. Start with a Google Analytics account, and add your site as a property. This tool will help you measure revenue, customer acquisition, inquiry and engagement.

Related: 4 Marketing Analytics Tools That Are Shaping the Industry

4. Monthly revenue

Even if your income varies throughout the year, it's important to organize this information based on reliable revenue (the minimum amount of money your company makes every month), and share it with your agency. It can help the firm understand the size of your business and what it means for achieving your goals.

For example, if you're earning $10,000 a month in revenue, television ads wouldn't be a good idea. But if you're making $1 million a month, your agency might suggest such higher-level marketing channels.

5. The lifetime value of your customer

The easiest way to estimate lifetime value is to multiply the average value of a sale by the number of repeat transactions. Then, multiply that total by the average customer retention time. Once your agency understands how much you're making from each customer, it can then determine where potential lies -- and help optimize the amount you're spending to acquire each of them.

Say you're only making $10 more than the average lifetime of a customer -- converting less than 20 percent of your online traffic into sales spells trouble, in this case. Sharing that information would show the agency that, while you're paying a similar amount per click as your competitors, you're not seeing much return on it.

Determining your customer lifetime value will help calibrate your marketing budget to your real needs. When you understand what kind of ROI you need to see, you'll have a better sense of how real your numbers actually are.

As much as you may want to dive right into tactics with your marketing agency, resist the urge. Instead, sit down with your agency partners and cover these five topics.

Related: 4 Things to Consider Before You Get a PR Team

Erik Huberman

Founder and CEO of Hawke Media

Erik Huberman is the founder and CEO of Hawke Media, a Los Angeles-area outsourced digital CMO agency for companies like Evite, Bally Total Fitness, Verizon Wireless, Eddie Bauer, Red Bull and many other brands. A serial entrepreneur and a brand and marketing consultant for eight years, Huberman previously founded, grew and sold Swag of the Month and grew Ellie.com’s sales to $1 million in four months. Huberman is available to be a keynote speaker.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Business News

This New Restaurant Is Banking on One Dish — Because It's the Only Entrée on the Menu

The new hotspot is gaining buzz on social media for its innovative yet super simple concept.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Leadership

4 Bold Leadership Moves Every Successful CEO Uses to Navigate Change

Ready to turn fear into fuel and lead with confidence? In this article, I share how leaving my corporate job without a plan led me to build a thriving business. Learn four bold strategies to embrace uncertainty and turn challenges into opportunities for growth today.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.