Discuss further in the
Member's Forums

So how do you grow your client base? And should you be focusing on increasing your share of your existing customers or getting new customers?

No question about it, if you have a good client that is part of a larger company, it's generally relatively cheaper in time investment to do more business with that company than to go out and find some new clients. You already know the company and the way it works (I hope!), so you have a natural advantage against other studios. On the other hand, there are a number of things that you may need to consider before going after more business.

Share of customer

First thing you need to decide is whether or not the company really is a 'good' customer. That's up to you to decide, but clearly it involves more than just the money. Is the work part of your target project mix? Does it excite you (and therefore inspire you to do your best)? Are the deadlines always unreasonable or is it more negotiable than that? Do they pay well, and on time?

Secondly, you should be realistic about how 'big' the company really is. Since most graphic design firms are pretty small (Australian national avg size of 4 people, including principals), almost anything seems large by comparison. If companies typically spend anywhere between 3% and 7% of sales on total marketing spending, and only a small proportion of that on design fees, how much are you getting already of their available design budget, especially if it is a small company with only one business (instead of multiple subsidiaries)?

Thirdly, what are your relationships within the company now? Are you dealing with the CEO or MD? If so, and it is a good relationship, you're probably getting the most business that the person is comfortable giving you. On the other hand, if you're dealing with a subsidiary, there may be some exciting opportunities waiting outside your direct client's area. Try asking them if they would be comfortable with you approaching some of their colleagues, even recommending you to those colleagues. It can't hurt, and it will show your direct client that you have a business mind.

One thing to watch is the politics - your client may be the most unpopular marketing manager in the group, in which case a recommendation from them could be the kiss of death for you. In some companies, marketing managers are so territorial that they make a point of not sharing suppliers. Again, if you find yourself dealing with one of these, good luck!

Share of market

Network, network, network. Present, present, present. Ugly words for most designers, I know. If neither of these activities appeal to you, and you can't afford to hire someone you trust to do it for you, stop reading now and go do something infinitely more enjoyable. I would.

Networking doesn't mean sleazing up to strangers and putting some slick lines on to them. Try asking your friends and existing business contacts. Be blunt, tell them you're looking for new business. Be prepared to tell them what you're good at, and who you've done it for, but make it short and sweet. Say it enough times to enough people, and sooner or later you'll get a bite.

Presenting is another way to get yourself known by a larger group of businesses than your existing client base. This is where reality can smack you around a bit, though. Every designer has a wish list of clients or projects, right? Problem is, they are only on your wish list because you haven't done that kind of work yet. So how do you 'prove' that you can do the right design for them, without being a sucker and doing a free pitch?

For a start, pay them some attention. Do some reading, go to the library (yeah, you remember that place that they hassled you about at school) and use the CD-ROM or online references to track down the last year's worth of press releases and articles about them. Find out what they have been worrying about, and think about how you might be able to help them with your design. Put it in writing, send it to them and follow it up with a phone call. Yes, it takes time, but so does replacing existing clients who fall off the map.

I have a few friends who dedicate half a day a week to new business development. It's slow and it's painful, but it always pays off (eventually). One mistake you shouldn't make is to expect instant sales. Be patient and be persistent, one day they'll give you a project out of sheer curiosity, and then it'll be your chance and your talent.

What's the ideal mix?

Paul Rand was a consultant to IBM for over twenty-five years. It got to the point where his involvement extended to recommending other design consultants, such as the typographer who was used on the launch program for the IBM PC. What a dream relationship! Just don't forget that it took him a long time to build that relationship.

I think the ideal client mix consists of a handful of really strong client relationships and a bunch of more project-based relationships.

Strong relationships are where your work extends across many of the business areas/subsidiaries, where your contacts are mostly at a senior level, and where there is a steady, relatively predictable amount of work throughout the year.

The project-based work comes from 'potential' clients who may have one-off requirements, or at least be of a size where they can't afford/don't need a steady stream of design all year 'round. These one-offs act as creative 'leavening' for your studio's soul, keeping it fresh and edgy. Don't let those project clients fall away though, make sure you at least send them christmas card.

So how're you doin' with your client base, then?

Return to Observations

AGDA Members: Discuss this article in AGDA's Business Forum.

andrew@lam-po-tangcom