Episode Details

Are you willing to start saying no to wrong customers to see real change for your agency? Kerrie Luginbill is a partner and Chief Strategy Officer at Old Town Media, a Colorado-based agency that since its beginnings offered a unique and agile approach to web design, development, and marketing by providing customers a business-driven approach. Now they partner with companies to create and implement marketing strategies that connect with their audience and inspire action. Kerrie discusses how she increased revenue by 4X in under one year. And now, after 15 years in the business, her agency crafted a "no-fly" list for customers, identified their target client, and the growth that resulted from this move.

1. Saying no to wrong prospects. Kerrie and her team really noticed a difference once they identified the right target customer for them and started to say no to the ones that did not fit that target. It was what catalyzed the growth, she says. Of course, it's not easy turning down business, but they found that saying yes to the wrong kind of customer really reduces the amount of space you have for the right ones. Especially when it comes to clients that are disrespecting your team. Learning to say no can be a way for you to protect your team and a catalyst for growth.
2. The no-fly list. With that in mind, Kerrie and her agency began creating a no-fly list, writing down all the similarities that made some customers not fit in the target customer model. They started identifying red flags, like referencing another company's vision to explain their own. They wanted to work with companies that had a clear vision of where they wanted to go. Their biggest focus was value, because ideal clients must have a lifetime value customer that can afford them the margin to have an engagement with them that's large enough for them to drive value.
3. Shifting to value-based pricing. It's very hard to get to value-based pricing when you're working with a small margin. Once you start saying no to low-margin clients you will start to identify people that share your values and with which you can form a strong engagement and a strong relationship. You can find that those clients are even easier to work with. This way, you start to reduce stress on your team, which helps reduce turnover. This is when you can start shifting to value-based pricing.

Ninja Cat: Today's episode is sponsored by Ninja Cat, a digital marketing performance management platform where you can unify your data, create beautiful, insightful reports and presentations that will help you grow your business. Head over to ninjacat.io/masterclass to enjoy an exclusive offer for podcast listeners.

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