My Take – 2
Three Core Services
Progency will likely specialise in three interconnected service areas that specifically target different customer segments based on their engagement levels and value potential.
- NeoN: Reacquisition Reimagined
For “Test” customers—those who have gone dormant or inactive (90+ days)—the traditional approach has been expensive retargeting through Google and Meta. NeoN offers a revolutionary alternative:
- An email-based ad network leveraging authenticated identity
- Brand-to-brand collaboration that eliminates platform intermediaries
- Precision targeting through PII-based matching
- Interactive ActionAds that enable frictionless transactions directly within email
- Performance-based pricing that aligns all parties’ incentives
NeoN transforms reacquisition economics by enabling brands to reach their dormant customers through the active engagement channels of non-competing brands. This creates a dual benefit: one brand “prints money” by monetising their engaged audience while another “saves money” by efficiently reactivating their dormant customers.
- NeoMails: Reactivation Through Interactive Engagement
For “Rest” customers—those showing declining engagement (30-90 days inactive)—NeoMails provides a proactive intervention to prevent them from becoming fully dormant:
- AMP-powered interactive email experiences
- Atomic Rewards (Mu) that gamify engagement and drive consistent opens
- Microns that deliver 15-60 second “brain gain” experiences
- SmartBlocks for zero-party data collection
- In-email transactions that eliminate the “click-through penalty”
NeoMails transforms traditional email from static broadcasts into engaging, interactive experiences that command attention and drive action—solving the “No Hotline” problem that forces brands into expensive reacquisition cycles.
- Neo360: End-to-End Customer Growth
For brands seeking comprehensive optimisation of their customer relationships, Neo360 offers an integrated solution combining platform capabilities with expert services and AI orchestration:
- Complete ownership of customer journeys across touchpoints
- N=1 personalisation at scale through AI Twins
- Automated content creation and optimisation
- Cross-channel orchestration with real-time adaptation
- Continuous testing and refinement of engagement strategies
Neo360 typically begins by focusing on maximising value from Rest customers before expanding to Best customer retention and Next customer conversion—creating a seamless ecosystem for sustainable growth.
The Economics of Progency
Progency creates a fundamentally different economic relationship with clients:
Zero Base Fee + Performance
- Minimal upfront costs for clients
- Agency compensation directly tied to measurable outcomes
- Shared risk and reward creates perfect alignment
Measurable ROI
- Clear attribution through control/test methodologies
- Transparent performance reporting
- Accountability for business impact, not just marketing metrics
Long-Term Partnerships
- Multi-year agreements focused on customer lifetime value
- Deeper integration with client operations
- Shared data infrastructure and knowledge building
This economic model transforms agencies from vendors selling services to partners invested in long-term business success—a dramatic shift from today’s project-based, procurement-driven agency relationships.
The Competitive Landscape
Progency’s transformative model will face different competitive threats than traditional agencies:
Traditional Agency Holdcos
- Struggling with legacy cost structures and business models
- Attempting digital transformation but constrained by quarterly earnings pressure
- Unable to make the technology investments needed for true AI-native operations
Tech Platforms
- Building increasingly sophisticated self-service tools
- Limited by focus on their own ecosystems rather than cross-channel orchestration
- Facing privacy headwinds that challenge their targeting models
Management Consultancies
- Strong in strategy but weaker in execution
- Growing creative capabilities but lacking proprietary martech
- Typically using performance-based pricing but not fully retention-focused
In-House Teams
- Developing deeper customer understanding
- Challenged by talent acquisition and technology integration
- Often still acquisition-focused due to organisational structures
Progency will need to navigate this complex landscape by offering a compelling alternative that delivers measurable business results through retention-focused strategies, proprietary technology, and performance-based economics.
