Recent studies have revealed the industry average for lost revenue among professional service firms, including marketing agencies, stands at a full 5%—mostly due to billing errors, time wasted on product or project delivery issues, incorrect statements of work, or misquotes within firms.

Many factors contribute to lost revenue, and all employees—from executives to account executives—have a hand in it.

Top-level executives at agencies and services firms excel in business development and client service. Staying close to other areas, such as operations, finances, and human resources, is important for the overall health of the business, but doing so can often feel like a chore to a busy executive—and sometimes outside his or her comfort zone.

To offset potential revenue loss because of inefficient or inaccurate operations, agencies should implement clear operational and financial guidelines, with support for adhering to them coming from the top down.

Educating all agency professionals about why time entry, data, and project tracking are critical to the success of the agency is the first step in making internal change.

Regarding financial issues, it's been proven that providing employees with an individualized picture of their financial impact makes for engaged, productive team members. Employees want to feel they are contributing to the greater good and are an integral part of the success of the agency. Making it clear that tasks such as accurate and timely reporting, invoicing, and data entry a vital and mandatory part of everyone's job will pay off.

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Three Ways Services Firms and Marketing Agencies Can Counteract Revenue Loss

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ABOUT THE AUTHOR

image of Kae Kronthaler-Williams

Kae Kronthaler-Williams is general manager of Exact Online, a leading accounting, CRM, and industry-specific solutions for SMEs in the accountancy, manufacturing, professional services, and wholesale distribution sectors.

LinkedIn: Kae Kronthaler-Williams