It’s said that if something happens once it’s a fluke, twice it’s a coincidence, and three times it’s a pattern. I’m seeing a disturbing pattern of far too many client/agency relationships lasting a mere 18 months.
Anyone charged with finding and selecting an agency needs to understand three simple yet key items in order to make a better, more informed decision. Agency executives should also keep these three simple rules in mind before agreeing to work with a client, as not all clients are right for all agencies.
Rule number one: Size matters
If the account value to an agency represents less than 30% of its current total billing, it is probably too large of an agency for you. A good agency will recommend alternatives to clients that don’t fit a budgetary sweet spot. An agency playing out of its league can easily lose a client. Likewise clients with relatively smaller budgets should work with an agency that specializes in that arena to ensure outstanding service–you don’t want to be a small fish in a large pond. Be honest about budgets, and work together to determine, right up front, if you are compatible.
Warning signs your agency might be too big for your budget: The agency says, “I’m really busy right now” or “As soon as I finish up with (insert client du jour here)”; meetings are regularly canceled and rescheduled; you simple don’t feel that you are receiving the attention you want. As the client, you should feel like a king (or queen) and be appreciated and counseled properly.
Rule number two: Personnel matter
Now that you know your budgets are in line with the budgets of your agency, the next important task is making sure you mesh with the agency’s personnel and their expertise. Be sure to ask if the individuals in the review will be involved in the day-to-day operations of your account, and if not, who will be? Be sure to meet those directly involved with handling your account, because that is really who you’re hiring.
Warning signs you have the wrong agency personnel: You’ve never seen or met the owners or leadership of the agency, or worse, the only time you met them was during the review and sales process; you are constantly having a new account executive assigned to your account; those assigned simply don’t understand your organizational goals or your industry.
Rule number three: Don’t be blinded by friendship
It may sound obvious, but don’t select an agency because the account executive is your old drinking buddy from college. Remember that time you bought a car from your weird uncle? Same thing.
While personal relationships are indeed important, your choice of agency is a key one for your organization and should be based on sound principles of return on investment and achieving measurable objectives. So if you’re considering your old drinking buddy’s agency, make sure it has the expertise and the right personnel to make a good impression on both your target audience and your boss.
In the media strategy, planning, and buying business, advertising and marketing executives understand that no matter how great the creative of an advertisement or promotion is, that doesn’t matter if the ad or promotion doesn’t reach the right audience. With ever-increasing and complex media options competing for the hearts, minds, and wallets of consumers, the need for media management expertise that efficiently and strategically connects businesses to their audience throughout the myriad of choices has never been higher. Your friend can still be your friend; just make sure he can do the job. This is true regardless of the marketing discipline, be it creative, Web development, branding, or public relations.
Warning signs your pal isn’t cutting the mustard: He still asks you to go on spring break with him; when you get together for cocktails you don’t talk work; you’re afraid to hold him to the same standards you’re being held to; you are constantly the one being proactive and presenting fresh, new ideas.
Clients must be willing to do their up-front due diligence when selecting an agency. I personally believe that requests for proposals are foolish and show a general lack of understanding of your own business. Instead, find four or five agencies that fit these three simple rules and ask them to come in for a formal presentation, then make your selections from there. Trusted referrals are also a very good thing.
Also be sure that your expectations are in line with reality. A good agency will take the time to go through reasonable expectations based on budgets and your specific goals and objectives.
In the end, we all want to impress. A good marketing executive needs his product or service and his brand to make solid, lasting impressions–and changing agencies every 18 months is a surefire way to erode a brand. In sports analogies, think of it as changing your head coach or your quarterback every other season. It hurts continuity.
Among agencies, there is a sad adage that goes something like: The day you sign on your new client you are one day closer to losing the client. Put another way, it takes nine months to secure a client, and nine minutes to lose one. Both agencies and clients must become smarter about the choices we make and with whom we choose to work.
Susan Applegate is founder/CEO of Applegate Media Group, a New York-based media management agency.
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