In todayʼs competitive agency marketplace, itʼs more difficult than ever to stand out from the crowd and retain clients. As AdWeek reports, it’s not uncommon for small-to-medium-sized firms to see upwards of 40% client turnover year over year.
Too much client churn can be a death blow to your agency since it costs up to four times as much to earn a new client as to retain an existing one. And as AdWeek’s report explains, a consistently high churn rate indicates your agency is failing to establish long-term relationships with your customers. This can seriously stunt your agencyʼs growth since recurring client revenue is fundamental.
At the same time, we’ve seen a recent explosion in the availability of automated and AI-based tools. These tools provide significant time savings for marketers and help them fulfill client needs that were too difficult or laborious to do before. This guide highlights how agencies can automate or expand their capabilities to delight and retain their clients for years to come:
1. Why clients break up with their agencies
2. The solutions to client churn
3. How to help your clients focus on the marketing metrics that really matter
Why clients break up with their agencies
In the world of agency-client partnerships, the initial courtship is crucial to ensure long-term retention. After successfully winning over a client, excitement builds as new ideas flow — however, as the work progresses, frustrations may arise. Perhaps the client’s responsiveness dwindles, or they feel unheard.
Here are the top reasons agency-client relationships fail. In the next chapter, we’ll explore solutions.