A Unique Hybrid Office Model and Bouncing Back After Big Clients Leave with Sarah Segal | Ep# 712

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Do you run a virtual agency or a more traditional in-office business? It all comes down to what suits your and your team’s work style, and one agency owner has found a way to incentivize in-office days. She also shares the lessons learned after two big clients left within weeks of each other. This feature guest has constantly been evolving and adapting to change. She shares her reasons for being an advocate for the collaborative and innovative environment that comes with a shared physical workspace. She also shares the challenges she has faced that forced her to diversify her client roster and empower her team to be independent.

Sarah Segal is the CEO and founder of Segal Communications, a public relations, social media, and influencer marketing agency that specializes in crafting communication strategies spanning the events, hospitality, and food niche. She shares her journey from broadcast journalism to accidental agency ownership. Sarah also talks about why she established a hybrid agency show where she encourages her staff to go to the office, and the decision to resize her agency and diversify their client roster.

In this episode, we discuss:

• An innovative approach to promoting office culture.

• Adaptability and resilience when big clients leave.

• Building a self-reliant agency team.

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Going from Broadcast Journalist to Accidental PR Agency Owner

Sarah began her career as a broadcast journalist in New York City, first working behind the scenes for various networks before transitioning to an on-camera reporter. However, her move to San Francisco marked a significant turning point in her life. While covering a particularly harrowing story, Sarah, now a new mom, found herself unable to desensitize herself from such distressing content. This realization prompted her to pivot her career path.

This new stage of her career involved moving into PR and working starting in in-house positions before eventually moving to an agency, where she reunited with an old college friend who first presented the idea of starting an agency together. Sarah was working a couple of freelance gigs and a particular opportunity to launch a resort in Sun Valley, Idaho offered the perfect chance for the agency’s first gig.

Following her partner's departure for an in-house role, Sarah has successfully operated as a solo agency owner ever since.

An Innovative Approach to Promote In-Office Culture

Sarah, a forward-thinking advocate of new technologies and platforms, initially established her business as a virtual agency even before the pandemic. However, as she began to expand her team with freelancers and staff, she quickly recognized the irreplaceable value of in-person communication within her PR agency. Face-to-face interactions and fostering a sense of community in the workplace were paramount to her.

While her team had become accustomed to remote work, Sarah sought to strike a balance between virtual and physical presence. She carefully selected an office space that felt like a home away from home and introduced amenities such as work slippers. Furthermore, she implemented mandatory office days for all staff members. She created a point-based reward system for additional days in the office. Points are cashed info things like extra PTO, high-end headphones, and even international travel.

This way, days at the office don’t have to feel like punishment for her staff and she is leaving room for them to spend extra days of the year there at their choosing. This not only fosters a sense of community and camaraderie among team members but also allows for more spontaneous and creative interactions that can lead to better collaboration and idea generation.

When Big Clients Leave: A Lesson in Adaptability

Every entrepreneur is cautious about how they move ahead with growing a company. Throughout the years, Sarah has received all types of advice about what not to do with her agency, and, by heeding this advice, she successfully expanded her client base, securing several major accounts. However, when the agency lost two of those clients in six weeks, Sarah had to start making tough decisions to stay afloat.

Unfortunately, this meant she had to lay off part of her staff leaving her feeling terrible, yet also relieved about being able to make payroll. This experience served as a poignant lesson that she hopes never to repeat.

Since losing those clients, Sarah has restructured her agency to diversify their portfolio. Now, her agency does not focus solely on big clients and has a range of small and mid-size clients. This way, if any of those clients depart, it has no impact on her P&L. By spreading out the risk across multiple clients, the business owner was able to protect their bottom line and ensure financial security moving forward.

Furthermore, diversifying clients also opens up opportunities for new business relationships and partnerships. By working with a range of clients, the business can expand its network and potentially tap into new markets and industries. This can lead to increased revenue streams and a more stable financial foundation for the business.

Cultivating Independence by Building a Self-Reliant Agency Team

As your agency grows and you bring in new team members, you'll find that your role shifts to that of a leader who nurtures and develops others. It becomes essential to empower them to embrace your vision and handle challenges independently. By doing so, you can free yourself from the pressure of making every decision.

When you invest in training a proficient team, they become equipped to tackle any obstacle, allowing you to step back from being involved in every single decision. For instance, Sarah entrusts her team to handle minor decisions and seek guidance for major issues. It's not about her making the final call, but rather ensuring that all written materials leaving the agency are reviewed by a second party.

Her team knows to come prepared with multiple options when seeking her input, akin to the 1-3-1 rule recommended for mastermind members. By teaching your staff to consider various solutions and choose the best one, they can gradually take charge of decision-making.

For Sarah, one of the most important things is that her team keeps her up to date about the temperature of each client. Unfortunately, she also thinks temperature checks are something people don’t necessarily learn until they’ve had the experience of getting that call from a client who is leaving. As an agency owner, patience is key as your team gains the necessary experience, ultimately surpassing your expectations.

Only by adopting this mindset of letting go of small tasks that your team can handle on their own can agency owners finally let go of some of the things they used to do and start doing the things no one else can do.

Shaping the Agency’s Client Communication Strategy

As someone who runs a communications and PR agency, Sarah has seen with concern that most agencies have a very close-to-the-vest approach to how they handle their media. These agencies won’t give clients access to the emails and connections they have and keep those as their value.

According to Sarah, the primary reason clients seek her agency's services is the time and effort it saves them. She and her team handle tasks that clients simply don't have the bandwidth for. This understanding has shaped her client communication strategy, emphasizing transparency.

Sarah prioritizes open and honest communication with her clients, sharing media lists, expenses, and other pertinent information. This commitment to transparency not only fosters trust but also ensures that clients are well-informed and aligned with the agency's goals and objectives.

Do You Want to Transform Your Agency from a Liability to an Asset?

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