Align customer acquisition and growth potential
If you have a good understanding of the overall performance of your portfolio, it will give you a clearer picture of the types of clients your agency wants or needs. You’ll also have control over when it’s time to slow down new business acquisitions and when it’s time to hire quickly.
For Impression, along with many other variables, these are the retention levels 1 through 5 that they developed for scaling purposes: currently focusing on levels 1 through 3, so big customers. with convincing budgets or clients with rapid growth and ambitious goals.
Jovetic recalls a client in the FMCG industry who wanted to triple their annual revenue and needed an aggressive strategic mix for their digital presence, including research, payment, CRO and digital public relations. For the SEO side, they used a forecasting methodology that allowed them to calculate the potential organic traffic growth and what that means in terms of conversion rate and revenue.
Then they were able to create a 12 month roadmap and goals for each quarter as their proof of concept was strong and referenced historical conversion rates, year-over-year research trends, breakdown. devices and even the long tail effect. When completed, it was then incorporated into the larger numerical forecast.
Another example was a large international brand that only had 30% organic non-branded traffic, a short-lived SEO history, and a conservative budget to work with.
It’s here that Impression’s research team got creative with keyword grouping and thematic levels, focusing on specific landing pages and long-tail opportunities that would create a reliable narrative and a relevant return on investment on both sides.
It was about recognizing what they could influence and what levers they could pull among the regular challenges of long development queues and limited internal and external resources.
So, using a reliable forecasting methodology will not only help you gain new customers but also qualify them and assess their growth opportunities. Know when to say Yes and when to say No will help you in your scaling efforts.
Additionally, you can take the Google Ads equivalent of your planned SEO scenario and calculate your holdback accordingly, showing the company’s ROI and making sure you have an objective benchmark that customer can check and trust.
For example, if it’s a customer with an estimated Google Ads value of $ 300,000 for the planned 12 months, a monthly retainer of $ 1,500 isn’t overstated. Again, if this is a client whose estimated growth almost equates to the down payment, then this is probably not the right client for you.
With all of these numbers calculated, you will have a clear picture of the potential MRR entering your portfolio.
If this is a client who deserves to be sought, another crucial fact is to get their buy-in. As Jovetic says, a forecast is as good as the alignment around it – which is why Impression has embraced the Owned and Shared Goals framework, setting goals that are shared both within agency departments. and with clients. These are linked to the measurement plan, so that no part of the monitoring process is overlooked and the appropriate expectations are set from the start.
Putting this acquisition framework in place ensures that only relevant customers with long-term potential enter the pipeline and the churn rate remains low.
Keep track of business forecasts and goals
Besides the big picture of the client, there is also the agency side that needs to be monitored and measured. Again, a simple and effective measure here is a projected MRR – a target your agency needs to hit in terms of revenue by the end of the year.
Impression has adopted the OKR (Objective and Key Results) framework to be able to see itself as a customer and set goals at each level. As Jovetic explains, each department has quarterly goals and strives to monitor attrition rates.
The management team uses an operational dashboard in the form of a personalized Data Studio report that extracts data from all the important parts of the business: the time management software with the hours tracked for each department, the HR system with individual goals, financial system with cash flow, etc.
Having all of the actionable metrics in one place allows them to forecast business for their agency and assess potential growth scenarios each quarter.
You don’t need to get lost in too many metrics and KPIs.
One to three key metrics to continuously monitor will do the trick, especially early in the process. After all, most are lagging indicators: “outputs” that can only be explained after the action is taken, such as “customer satisfaction”. You can gauge customer satisfaction after the quarter or year is over and see the trend, but a workable metric in this case would be the% of customer goals achieved.
For the SEO service in particular, you can think of:
- Daily tasks that require real-time data.
- Historical trends you need to know.
- Budgets and resources allocated by client.
SEOmonitor’s agency dashboard includes a daily snapshot of your client portfolio and key internal processes:
- The overall state of your SEO goals.
- The Visibility trend across the portfolio.
- The MRR state on the whole portfolio and at the individual level.
- Status of monthly reports across the agency and for each account manager.
- Key information for every campaign that needs your attention now – whether it’s quick wins, campaign issues, competitor changes, etc.
To make sure you’re always up to date with important business health updates or your clients’ campaigns, our platform sends alerts for every status change.
In a word
Each set of KPIs and operational dashboards created is only relevant if it is actionable and “alive”. If you set it and forget it, it won’t help you get the clarity you need.
For each stage of the customer journey, you can measure revenue potential, actual revenue, and room for growth. As an agency, you need to keep the right balance between existing clients and new clients:
- Acquire only long-term clients and provide you with a healthy return on your investment.
- Keep the churn rate low by activating internal processes from start to finish: client goals, internal goals, periodic reports and company reviews.
This is how you keep control of how your agency is progressing and have the flexibility to start projecting where you may be in a year or two.
SEOmonitor continually optimizes the agency dashboard to adapt to critical processes within an agency – from campaign tracking to report management and proposal development.
These features are part of our SEO platform designed only for agencies.
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