The chemistry session goes well. You like what you see. But have you asked the questions that will ensure the pitching agency really is The One? Think of it as a pre-nup, writes Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner, and one that could save a marketer time, money and heartache.
In a recent article from marketing ecosystems experts AAR Group, the long term partners of IAS, drive lead consultant Vicky Gillan highlighted the importance of agencies having robust client retention strategies.
A key issue raised by Gillan is that client retention has “always lagged behind the shiny ‘sexiness’ of new business. At least, that’s certainly always been the perception”, she says, noting that previous AAR client/ agency research showed 76% of clients and 61% of agency leaders agree that “agencies appear to value new business more than existing relationships”.
There’s the first question marketers should be posing to the agency: When the honeymoon is over and we’re all putting in the hard yards, how easily will your head be turned by the next ‘huge business win’? For this to be a solid relationship, marketers need to know the agency’s track record of client retention.
How does the agency keep a spring in its step and keep the client not just happy, but delighted? As Gillan notes, it’s easy to do when the connection is “shiny” and new. So, how long can a marketer expect the same enthusiasm for their business?
The solution is to ask about service level agreements and the agency’s policy on client retention. Also, what sort of longevity does it boast with its current clients – and would a bigger, shiner client put your business on the back burner?
Facing potential uncertainty together
As we look at what the future may bring – budget cuts, rampant inflation, a plethora of new platforms with which to engage – marketers need quality advice, robust strategy and more innovative ideas than ever. A winning client / agency partnership is one that can put a different focus on the business, noting that organic growth with current clients beats onboarding a new client every time.
The costs of acquiring a new client far outweigh the costs of keeping a current client happy. While the same amount of time and effort is involved, it is of a different sort. Nothing compares with having a history together to ensure both parties have a deep understanding of how each works.
This was proven during the pandemic, when marketers and agencies worked far more closely together, even virtually. Together they overcame uncertainty and challenges, creating great trust.
Now the pandemic is over and everyone is looking for growth, there’s a danger that if an agency is spending all its time pitching for new business, they may well be neglecting current clients.
So, what’s new?
Agencies often forget to tell long-term clients what their skills are – and these are bound to be changing all the time. They also highlight new offerings on their website, but current clients are rarely going to take a look, unprompted.
Think of it as date night – where an agency reminds clients of all it brings to the table, and marketers are able to ask about new services, because marketing to existing clients is as important as marketing to potential clients.
Viewing this important business relationship in the same way they would a long-term partnership or marriage is vital: You’re going to fall in love, get married, go on a wonderful honeymoon together… but how are you going to sustain, maintain, and grow the relationship in order to keep each other happy?
It’s not unreasonable for marketer who has put a ring on it to say, “Surprise and delight me. When I know I have a meeting with my agency that week, I want to be really excited. How will your agency ensure that the excitement continues to be there?