Question

Topic: Strategy

How Does A Client-dominated Shop Diversify?

Posted by Anonymous on 1/16/2004 at 5:24 PM ET 125 Points
As marketing manager of a web development studio, I am charged with diversifying our company's client base and, of course, increasing revenue. Although we're small (six people), we continue to live off one Fortune 500 client and its associated divisions. This account dominates our company culture, portfolio and resources.

In one year, with a tiny budget, I have implemented our brand from scratch, created a good website and local presence, done all the relevant directory and search marketing, and cleaned up our act in proposal development and sales processes. Since my arrival, the firm has doubled its repeat business from our one client (mostly through engagement from CEO), but failed miserably at diversifying outside of this account. Am I wasting my time by trying to diversify our 'industry-heavy' shop to other sectors? How do I extend our reach to new sectors w/o being pegged as a one-client shop?
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RESPONSES

  • Posted by ReadCopy on 1/19/2004 at 1:27 PM Member
    From the work that you have done with thsi one client, and from the profile of companies that were interested in listening to you (I am sure you had some of those), you may be able to work out a "client profile", from this profile, it would make matching other potential customers easier.

  • Posted on 1/21/2004 at 1:12 AM Accepted
    Hi B.
    No you are NOT wasting your time trying to diversify, you need to get more customers to reduce your risk of your one big client jumping ship on you.

    As long as you are still focusing on web technologies, you can apply your strengths to different customers.

    [I don''t recommend trying to add more marketing or advertising activities under your umbrella - a small company of 6 people would die trying to master a different area of expertise]

    What have you tried so far that has failed miserably? Why have your prospect said NO?
    Analyze those answers and work on improving the results next time around.

    You''re starting over in terms of building the business, but you''re lucky enough to have a rich client paying the rent until you get rolling.

    And if you have a CEO, you can''t afford to be giving away free hosting or templates, etc. That shit is for beggars, and if you''ve got a F500 client already, you''re above bedroom trash. Keep trying to crack the nut.
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