As the nation’s economy continues to recover, a growing number of small businesses like Minneapolis-based SCHERMER are forecasting significant financial gains in 2011. Recognized nationally as a top business-to-business branding and marketing agency, SCHERMER finished 2010 earning nearly $4 million in total revenue – and doubling its gross profit from the previous year.
The agency was recently ranked on Inc. Magazine’s 500/5000 fastest growing companies list, earning No. 54 on the list of Minneapolis companies. SCHERMER president, Chris Schermer, credits the growth and profitability to increased branding and interactive initiatives, and less reliance on traditional print media revenue.
Schermer creative director, Phil Hoch, sees continued growth in 2011 being driven by companies wanting the agency’s unique B2B branding expertise and creative, content and digital capabilities. “Today’s B2B companies need to create content, provide tools, and deliver brand experiences that engage and enable people. There’s no boundary between a customer’s marketing, operations and service experience.”
DBA – SCHERMER
Formerly branded Schermer Kuehl, the agency is now doing business as SCHERMER. The agency has been privately held by Mr. Schermer since 2007, when his former business partner exited the business. The name change coincides with the 15th anniversary of the company’s incorporation and according to Mr. Schermer, reflects a past change in ownership and a future state of growth and evolution.
The name change is one of many highlights punctuating the agency’s 2010 success:
- Added five new business accounts, including two Fortune 1000 clients
- A 20% increase in gross agency revenue
- A 100% increase in gross agency profit
- Doubled its creative, account and administrative staff
New Clients Driving Future Growth
In 2010, SCHERMER secured Agency of Record and Marcom partnerships with several multinational businesses that span the retail, technology, manufacturing and data warehousing industries.
• Best Buy for Business, the small business segment of Fortune 50 retailer Best Buy. SCHERMER has served as the company’s AOR since 2007, and retained the business following a national review in 2010.
• Teradata, a Fortune 1000 data warehousing and analytics company retained SCHERMER as its Brand Agency in September 2010 following a national review.
• GN ReSound, a Danish hearing aid company, named SCHERMER the company’s North American Marketing Agency in October after a local review.
• Ideas, a SAS company, considered the premier provider of hotel revenue management solutions engaged SCHERMER as its brand and marcom agency.
• Datacard, a world leader in card personalization systems. SCHERMER became the company’s primary Marcom Agency partner early in 2010.
Agency Fills Key Positions; Doubles Staff
The growth from these new accounts created a need to add new talent and expertise. Over the past year, SCHERMER increased its staff by 100%, including; Phil Hoch, Creative Director; Matt Henry and Dan Stefaniak, Senior Account Managers; Kevin Freidberg, Senior Copywriter; and Frederic Le Bail, Senior Art Director. To accommodate the anticipated growth from its new clients, the agency plans to increase its talent by 25 percent within the first quarter.