The Answer Is Always in Your Numbers

Hey there, welcome back to Agency Finance Letters.

I constantly see agencies make decisions based on gut feeling rather than data. Then they wonder why the same problems keep resurfacing month after month.

Your persistent agency problems have solutions hiding in plain sight - in your numbers.

Sales Issues = Tracking Failure

If your pipeline is inconsistent, you're likely not tracking the metrics that matter:

• Lead flow by specific channel (not just "referrals" or "inbound")

• Conversion rates at each pipeline stage

• Time between stages

• Cost per acquisition by channel

Agencies that religiously track these metrics spot patterns that gut feelings miss.

Churn Problems = Pattern Blindness

Clients don't randomly leave. There are patterns you're missing:

• Specific drop-off points in the client journey

• Team member correlation (comparing performance)

• Service line patterns (which services have a higher LTV?)

• Contract size factors (which retainer size churns more?)

The data always tells a story. One agency discovered 70% of their churn happened between months 3-4 - a clear signal of onboarding issues they hadn't recognized.

Profit Leaks = Flow Tracking Gaps

Profitability issues stem from not understanding how money actually moves through your business:

• Time allocation vs. estimates

• True service delivery costs

• Client profitability variations

• Scope creep patterns

• High overheads

When you track these elements religiously, profit leaks become obvious. They're rarely where you expect them to be.

The Implementation Reality

You can't improve what you don't measure. The agencies that consistently solve problems through data understand this principle and focus on:

1. Identifying the 3-5 metrics most relevant to your current challenge

2. Reviewing these numbers religiously (weekly, not monthly)

3. Looking for patterns rather than outliers

4. Making concrete adjustments based on what the data reveals

This consistent process helps our clients convert data from passive information into active decisions that drive results.

The answer to your persistent problems lies in your numbers. You just have to look at them in the right way. 

Till next week,
Joey