Brand Audit: A Self-Assessment Toolkit for Marketing Agencies
My last article on agency positioning provided an overview of the three primary ways to position a marketing agency: service specialization, sector specialization, and a combination of both. It offered clear advantages and drawbacks for each approach.
However, I want this next article to be more actionable, so you can begin identifying strategic opportunities for growth that make sense based on where you're at in your agency journey.
I'm reminded of a saying from one of my clients: "I need more meat on the bone." She would often share this sentiment whenever she wanted more 'do this, not that' advice. And in the spirit of giving you more meat on the bone, this self-assessment guide is designed to help identify your strengths, uncover areas for improvement, and better align operations with market demands.
1. Evaluating Internal Capabilities
What unique skills does our team possess? Don't just count the number of account managers; objectively assess the expertise within your team. Your expertise stems from the skills sets of you and your team.
Are there unique talents that distinguish us from competitors? When prospective clients compare your website to a competitor's, what stands out? Put yourself in your customers' shoes to determine how your shop differs from another.
Are there services that outperform others in terms of client demand and profitability? Create a spreadsheet listing all your services. Next to each, note the revenue generated and the profitability. This assessment will reveal what the market currently demands and where you make money.
2. Understanding Your World
Are we overly dependent on a few clients? As a rule of thumb, avoid having one client representing more than 25% of your gross income (known as high concentration).
Who are our direct and indirect competitors? Acknowledge your competitors by identifying them, along with their strengths and weaknesses compared to yours.
Are we aware of current and emerging trends in our sector? You want to stay aware of these trends to know how it might affect your positioning and service offerings.
3. Identifying Growth Opportunities
How well do our current projects align with our strategic goals? Evaluate whether your current projects are paving the way for becoming the agency you envision in the future.
Are there gaps in the market that we could potentially fill? If you do identify meaningful gaps in the marketplace, then consider how you might diversify or specialize further in response to market demands?
Are we allocating resources towards training, technology adoption, or market expansion? This question is fundamentally about whether you are truly investing in growth.
4. Optimizing Operations
Where can we improve our operations? Think about how technology or process adjustments could reduce time and costs to deliver your services.
How profitable are our projects? To increase profitability, evaluate whether you might reduce costs or increase prices.
5. Strengthening Agency Positioning
Does our messaging clearly communicate the unique benefits of choosing our agency? Gather feedback from current and past clients to determine how they perceive your messaging.
Do we have an effective strategy for marketing ourselves and communicating our unique value proposition? Your strategy should be documented so your team can refer back to it when necessary. Additionally, everyone in your agency should be able to articulate the essence of your strategy.
Are we engaging effectively with our target audience through digital channels? Assess your effectiveness in leveraging social media, content marketing, and SEO to enhance your visibility to potential clients.
This agency brand assessment toolkit is designed to help you look inward at your strengths and identify areas for improvement. I also put some questions in there for you to consider the external market environment and competitive landscape. By answering these questions honestly, I trust this will provide you with insight to refine your positioning, enhance your service offerings, and ultimately drive sustainable growth.