The Breakup Blueprint: Fixing Agency-Client Relationships Before They Fail
In the 6th annual Setup Marketing Relationship Survey, we uncovered that 40% of Clients intended to switch Agencies in the next 6 months. Although this is significantly less from previous years, the sentiment remains the same: Clients desire more from their Agency partners.
Our recent blog, “The Truth About Agency Breakups: What Clients + Agencies Really Think,” revealed that Clients are unhappy with the delivery of their Agency partners, and in order to improve the outcome, both Agencies and Clients must come together to communicate their needs, challenges, and frustrations.
The secret to the Agency-Client relationship thriving is communication.
In fact, “68% of Clients said that collaboration tools (like Slack and/or video conferencing)” make it easy to work with Agencies remotely - Clients want that coordination and collaboration with their partners.
The Marketing Relationship Survey also showed that if Clients switched roles “88% of Clients say they would work with their current Agency again.” Generally, Clients are satisfied with their partners to the point that 48% of Client-Side Marketers said they would likely recommend their primary agency to a friend or colleague.
Recommending a partner less than half the time is not the most glowing review.
What can be done to improve the Agency-Client partnership on both ends of the spectrum?
Our research showed why Clients end their Agency partnerships in this order:
Dissatisfaction with delivery
Agency did not understand our business
Dissatisfaction with strategic approach
Dissatisfaction with value
Change in my team’s leadership
Dissatisfaction with relationship
Our team had budget cuts
Change in the Agency’s personnel
Agency did not challenge us enough
Unfortunately, Agencies are not on the same page - and due to a lack of alignment and communication - think partnerships end for different reasons.
What can Agencies do to prevent breakups?
Communicate early and often. But it is not just up to the Agency to save the relationship, Clients need to communicate the minute there is discourse. Agencies could be more in tune to their Clients needs and preferences, but Clients also need to be vocal about those desires.
Clients desire the following from Agencies (in this order):
Deep Business Understanding
Proactive Partnership
Strategic Integration
Effective Communication
Flexibility + Customization
Commitment + Accountability
Building the Relationship
Efficiency + Quality
Insight + Expertise
Assurance of Transparency
Understanding a Client’s Business and Industry stands out as the most important skill Clients want from Agencies in 2024, both in the selection process and in the ongoing partnership. In the Marketing Relationship Survey, we asked what’s most important when selecting a new Agency partner, in addition to asking how Agencies can become better partners. The responses to both questions indicate that Clients are not feeling understood by their Agency partners, and they want that to change.
The 4A's (American Association of Advertising Agencies) 2024 report, "The Cost of the Pitch II: The Rise of Value," aligns with the desire for stronger partnerships by emphasizing the importance of value, trust, cost, transparency, and respect in Agency-Client relationships. Notably, 90% of Clients indicated that the overall value and long-term ROI of advertising campaigns outweigh cost. Clients want meaningful results that represent their company.
Last year, chemistry ranked most important when selecting a new Agency. This year, Clients seem focused on hiring the best partner with relevant experience who understands both the Client and their industry to help move the business forward. Chemistry is still important, right up there with Client experience, creativity, professionalism, and cost. When we look at what Clients want out of the ongoing Agency partnership after they’ve dazzled them with the pitch, we see that deep business understanding clearly takes priority, then Clients list proactive partnerships, strategic integration, and effective communication as important qualities. Clients are craving much more than a vendor relationship - they want a true partnership where their Agency colleagues will proactively research and think about the Client’s industry and business so that the Agency can truly understand the Client, suggest strategies to move the needle, and build the relationship through transparency, accountability, and commitment.
A great article by the Wall Street Journal further articulates the power of communication. That Agencies and Clients are working together for mutual success, so it only makes sense to communicate thoughts and needs. Industry analyst and CEO at Madison and Wall, Brian Wieser shared with WSJ, “In general, everyone should be looking to maximize everyone’s business—meaning if you decide that the service provider is doing something important, and it’s an ongoing relationship, the marketers should be trying to figure out what makes my partner as healthy as possible.”
Another way marketers can prevent Agency-Client breakups is by getting the relationship right the first time.
In 2024 leading into 2025, Clients are looking for branding/identity and/or social media help the most, with content creation/video needs trailing a bit behind.
Knowing this, Agencies can hone their skills and focus on the right opportunities without overselling themselves.
If you want to read the full Setup Marketing Relationship Survey results, feel free to download the full report here.
If you are an Agency looking for guidance on how to find the right opportunities with Brands, focus on your Ideal Client Profile, strengthening your pitch decks or current relationships, we can help.
If you are a Client-side marketer struggling to find the right Agency and want to save money and time, we can help.
At Setup, we strive to connect marketers with the best people and resources, and we will continue to share these insights, create helpful guides and resources, and develop services to best serve you and set you up for success.
In the 6th annual Setup Marketing Relationship Survey, we uncovered that 40% of Clients intended to switch Agencies in the next 6 months. Although this is significantly less from previous years, the sentiment remains the same: Clients desire more from their Agency partners. This blog breaks down exactly what Clients desire from their Agency partners and how the two parties can work together to create harmonious relationships.