Finding the right digital marketing agency can save you up to 85% on marketing costs compared to hiring an in-house team. Here’s a quick 5-step guide to help you make the best choice:
- Define Your Goals: Identify your key marketing needs and set measurable objectives using the 5S framework: Sell (revenue), Serve (customer experience), Speak (communication), Save (costs), and Sizzle (brand awareness).
- Evaluate Expertise: Check the agency’s industry experience, case studies, and services like SEO, PPC, content marketing, and analytics.
- Review Results: Look for proven performance data, success metrics, and case studies relevant to your business.
- Understand Costs: Compare pricing models (retainer, project-based, hourly), typical service costs (e.g., SEO: $10,000/month), and contract terms.
- Assess Compatibility: Test their communication style, work schedule, and team alignment with your needs.
Mistakes to Avoid: Don’t overlook unclear contracts, poor communication, or unrealistic promises.
Next Steps: Shortlist agencies, prepare your marketing data, and define performance metrics to kick off the partnership.
This guide simplifies the process, ensuring you choose an agency that delivers results without wasting resources.
Step 1: Set Your Marketing Goals
To get the most out of your marketing efforts and choose the right agency, start by clearly defining measurable objectives that align with your business goals.
Identify Your Key Marketing Needs
Figure out your biggest marketing challenges and long-term objectives. Be specific about the results you want to achieve. Consider using the 5S framework to guide your priorities:
- Sell: Focus on increasing revenue.
- Serve: Enhance the customer experience.
- Speak: Strengthen your brand’s communication.
- Save: Cut down on marketing costs.
- Sizzle: Boost brand recognition and awareness.
Determine Your Focus Areas
Make sure your goals align with specific marketing areas, such as SEO, lead generation, driving sales, improving engagement, enhancing website performance, or building brand awareness.
Address Critical Business Questions
- Timeline Expectations
Set clear and realistic deadlines for achieving your goals. A defined timeline creates urgency and keeps everyone focused. - Success Metrics
Use SMART goals – Specific, Measurable, Achievable, Relevant, and Time-bound.
For example, instead of saying, “increase website traffic”, set a goal like:
“Grow organic website traffic by 15% within six months by targeting specific keywords through blog content and SEO strategies“.
Once you’ve established your goals, you’ll be ready to move on to Step 2, where you’ll evaluate agency skills and services.
Step 2: Check Agency Skills and Services
Use the goals you outlined in Step 1 to assess whether an agency’s skills and services align with your objectives. Start by creating a checklist based on your goals to guide your evaluation.
Consider Their Experience and Credentials
Evaluate an agency’s background to see if it matches your needs. Focus on:
- Industry experience: Do they have expertise in your specific field?
- Case studies: Look for measurable success stories that align with your goals.
- Client feedback: Testimonials and references can give insight into their reliability.
- Performance tracking: Ensure they can measure and report on results effectively.
Align Services with Your Goals
Make sure the agency offers services that meet your specific needs:
- Search Marketing (SEO, PPC): Helps attract new customers.
- Content Marketing (blogs, email): Builds credibility and trust with your audience.
- Social Media (organic & paid): Increases brand visibility and engagement.
- Analytics & Reporting: Tracks your return on investment (ROI).
- Mobile Marketing: Reaches users on mobile devices effectively.
Compare What They Offer
When assessing agencies, compare them based on:
- Scalability: Can they adapt to your growing needs?
- Communication: Review their reporting process, transparency, and update frequency.
- Strategic focus: Look for agencies that emphasize data-driven results over just their reputation.
Step 3: Review Past Results
Once you’ve identified agencies with the right skills, take a close look at their track record. Case studies and performance data can confirm whether they can deliver results that matter to your business. The key here is to assess their actual performance.
Check Performance Data
Armed with your goals, ask for clear proof of their impact. For example, a vitamin supplements brand saw the following results:
- Conversion rate increased from 2.82% to 4.42%
- Revenue tripled
- Return visits jumped from 9% to 17%
- ROAS (Return on Ad Spend) rose from 0.98× to 3.83×
These numbers show real progress. Make sure the agency can demonstrate similar improvements in your target metrics.
Look for Industry Experience
Ask for case studies that are specific to your industry. Here’s how agencies have tackled challenges in different sectors:
Specialist Health Clinic (Connecticut)
This clinic struggled with low bookings from Google Smart and Facebook campaigns. By refining location targeting, expanding search keywords, and rewriting ad copy, the agency delivered these results:
- Booking conversion rate improved from under 1% to 4%
- Gained 63 new patients
- Click-through rate jumped from 1.33% to 5.95%
Multi-Location Lingerie Retailer
A retail chain in New York and New Jersey needed help boosting online sales. The agency resolved product feed issues, optimized the shopping feed, and set up Google Merchant Center, leading to:
- A 5.7x return on ad spend in just three months
Ask About Success Metrics
Go beyond surface-level data. Ask agencies to explain how they measured and reported their results. Look for metrics that align with your business goals. For instance:
A commercial hardware manufacturer achieved the following after implementing changes like new bidding methods, landing page tests, and better conversion tracking through HubSpot:
- Click-through rate rose from 3.1% to 5.6%
- Conversion rate climbed from 0.8% to 2.4%
- Enhanced lead tracking and identification
Metrics that directly drive growth are crucial. For example, an international tour operator acquired leads for under $6 each, doubled their traffic in three months, and significantly increased trip inquiries.
These examples highlight the importance of focusing on measurable outcomes that directly support your business goals.
Step 4: Review Costs and Terms
Once you’ve verified an agency’s track record, it’s time to examine their pricing and contract terms to ensure they fit your budget and expectations.
Understand Payment Options
Agencies typically offer various payment structures, such as:
- Monthly retainer: A fixed fee (ranging from $10,000 to $40,000 per month) for ongoing campaigns.
- Project-based: A one-time fee for completing specific deliverables.
- Hourly rate: Rates range from $50 to $500 per hour, with an average of $150, ideal for consulting or smaller tasks.
- Packaged services: Predefined bundles covering multiple services.
Request Detailed Cost Breakdowns
Here’s a general idea of what you might pay for specific services:
- SEO: Around $10,000 per month, with enterprise campaigns exceeding $200,000 monthly.
- PPC management: $250 to $1,500 per month (excluding ad spend).
- Social media marketing: Between $300 and $5,000+ per month.
- Email marketing: Costs range from $300 to $2,000 per month.
- Video production: $4,000 to $35,000 per finished minute.
Having a clear budget helps you plan more effectively and avoid unexpected costs.
Compare Pricing and Terms
When reviewing pricing, consider these additional details:
- Onboarding/setup fees: Typically $10,000 to $20,000 as a one-time cost.
- Technology fees: Can range from $200 to over $25,000.
- Media fees: Usually 3% to 15% of ad spend.
- Service markup: Between 10% and 20%.
- Contract length: Longer contracts often come with discounted rates.
- Scope of work: Confirm all promised deliverables are included.
- Payment terms: Pay attention to due dates and payment schedules.
- Guarantees: Understand the difference between guaranteed results and best-effort clauses.
- Cancellation terms: Check notice periods and any associated fees.
Keep in mind, the lowest price doesn’t always mean the best value. Look for an agency that offers clear, upfront pricing aligned with your marketing goals and financial limits.
Once you’ve clarified costs and terms, you’re ready to move on to Step 5: Evaluating team compatibility.
Step 5: Evaluate Team Compatibility
Once costs and terms are clear, it’s time to assess how well the agency’s team aligns with yours. A poor fit can lead to wasted resources – up to 15% of your marketing budget, according to research. Address compatibility early to avoid setbacks.
Test Communication Style
Pay close attention to how the agency communicates during your initial interactions. Look for:
- Response times: Are they quick to reply to emails or calls?
- Meeting preparation: Do they come organized, with clear documentation?
- Interest in your company: Do they ask about your culture and values?
These details can reveal whether their communication style aligns with your expectations.
Confirm Work Schedule Compatibility
Make sure the agency’s schedule works with your business needs. For example:
- Operating hours: Do their hours overlap with yours?
- Timelines: Are they clear and realistic about delivery deadlines?
Alignment in schedules ensures smoother collaboration and fewer delays.
Assess Work Style Alignment
Determine if their approach fits your company’s culture and processes. Here’s how:
- Meet the account team to gauge how well you’d work together.
- Check their transparency in processes, reporting frequency, and documentation.
- Look at their client retention rates and how they share knowledge. Does it signal a partnership built for the long haul?
Ask direct questions like:
“Who is your ideal client? What is your growth vision? How do you measure and report success?”
These will give you a clearer picture of their fit with your goals.
Mistakes to Avoid
Steer clear of these common errors when selecting a digital marketing agency.
Once you’ve ensured the team is a good match, keep these points in mind:
Read the Contract Carefully
Make sure the contract clearly outlines:
- Scope and deliverables: What exactly will the agency provide?
- Reporting metrics: How will success be measured?
- Termination terms: Notice periods and any associated fees.
A well-defined contract helps avoid misunderstandings down the road.
Establish Regular Updates
Set clear expectations for communication to stay aligned:
- Dedicated contact: Have a specific person for all communication.
- Meeting schedule: Agree on how often you’ll touch base and how quickly responses are expected.
- Access to data: Ensure you can review campaign reports and progress anytime.
Without consistent updates, projects can drift off course.
Be Alert to Warning Signs
Keep an eye out for these red flags:
- Promises of unrealistic results
- Lack of transparency or poor communication
- Generic strategies that aren’t tailored to your business
- No tracking of performance data or failure to share results
- Missed deadlines or inconsistent campaign outcomes
A reliable agency will set realistic goals and provide clear, measurable updates.
Next Steps
After completing Steps 1-5, it’s time to move forward with a clear and organized rollout plan:
Build Your Agency Shortlist
Start by narrowing down your options:
- Focus on agencies that align with your budget, primary objectives, and required services.
Prepare for Initial Discussions
Get your marketing data in order to streamline conversations:
- Key marketing metrics and analytics reports
- Website performance data
- Existing content resources
- List of marketing tools and platforms currently in use
Plan the Onboarding Process
Kick off your collaboration with these onboarding activities:
- Discovery: Discuss business goals and collect key data from your site, analytics, and platforms.
- Assessment: Conduct a thorough audit to identify content gaps and technical issues.
- Execution: Begin creating content, building links, and improving online visibility.
Set clear expectations by establishing measurable goals and a regular reporting schedule.