In the same way marketers check-out potential agencies before they think about working with them, make no mistake – agencies do the same thing. And corporate reputations go a long way to help agencies understand whether clients will be a good fit within their walls and their respective roster of clients.
Why? Aren’t agencies just lucky to have clients and lucky to have clients who pay their bills…?
Sure, revenue is important – but it’s only one aspect of new business for agencies.
While agencies will typically be looking for a cultural fit, they’ll also be looking at the opportunity the client represents. Is this a creative opportunity? An opportunity to help shape or launch a new brand or products? Or is it a strategic opportunity to improve process and drive sales?
Revenue, profitability, cultural fit, size, location, opportunity and availability all play a role in an agency’s decision to participate in a new business pitch process, and whether you’re the right client for them if they’re chosen.
While most marketers and agencies understand that both sides have their own idiosyncrasies, your corporate reputation around how you treat agencies will precede you, and can weigh heavily depending on whether you’ve been naughty or nice (year round).
So if you think all agencies would kill to work on your business, take a moment to think about whether your ears have been burning recently, and what your agency might really say about you if asked?
Spoiler alert: Agencies have already been talking. And here are the signs that might have them running for the hills:
One-way dialogue
If you’re a client that doesn’t like feedback look out. Feedback is not only important to the health of an agency relationship, it also sets the stage for how agencies present, provide insight and rationalize recommendations. Good agencies don’t say “yes” all the time or always agree with your points of view, and good agencies will likely shy away from clients who have a reputation for not wanting dialogue.
No manners
Marketing has never been tougher. The demand for results, the demand for proof points to ROI, complex media ecosystems and the rapid advances in information technology make life stressful for all marketers. So if you can’t manage to gasp out a simple “thank you for that 48-hour all-nighter” or a genuine “oops, sorry I was 45 minutes late to the meeting I called“—well, think about it this way: Imagine working for a boss who treats you like that. A boss who makes you cry into your keyboard by 10 AM.
Not a fun place to be, right?
Your agency feels the same way. They’re already fighting algorithms, trying to hit impossible targets, and trying to look cheerful on Teams. They probably don’t need to feel like they’re being managed by a disgruntled medieval warlord into the bargain.
High staff turnover
High staff turnover is another red flag. If you can’t keep your staff at your organization, agencies will want to make sure that whatever’s eating your team won’t eat theirs. If you’re losing team members, make sure you understand what’s really causing it before you look to a new agency to help you out. Because they won’t just see a marketing challenge; they’ll likely wonder if they’re about to sign up for a toxic environment that will drain their own talent and crush their team’s morale.
Frequent agency reviews
Agency reviews are hard work, stressful and disruptive for both marketers and agencies. From an agency point of view, winning or losing a piece of business has implications on resources, team structures, office space and any number of investments that can make or break agency P&Ls. Agencies don’t want to staff up or find extra space, only to see a newly won client walk out the door a year later. If you’re undertaking frequent agency reviews – be prepared to defend and justify your reasons.
The work sucks
Most agencies will try and convince you they can do a better job than your incumbent agency. But if the work really sucks and you’ve been running it for some time, agencies will ask why you’ve allowed the work to appear for so long and indeed how you allowed it to run in the first place.
So here’s the thing: When agencies look at the work you’ve been running – the stuff that makes junior creatives choke on their lattes – they won’t blame the other guys – they’ll blame you.
Payment terms
This one needs shouting from the rooftop:
We’re constantly perplexed by marketers who set payment terms at 120 days and higher. Some now run to 365 days! (I’m not kidding…) So let us clarify one crucial point:
Agencies are not banks.
Agencies don’t issue loans; They try to deliver killer creative. They have payroll and their people need to eat this month, not next quarter. If you’re demanding terms that require a financial commitment usually reserved for buying a small yacht, don’t be surprised if they turn you down.
The industry says so
Let’s be honest: the global marketing community is basically a terrifyingly small, highly caffeinated village. Especially here in Canada, or really, any city where everyone knows the best places for overpriced cocktails. And thanks to social media, most agencies are just a single, gossipy text chain away from knowing everything.
If you are anything less than pleasant – trust us on this – word will circulate faster than a free sample at Costco. Because your new agency has likely already checked-in with the current one under the guise of ‘due diligence’. And they’ll know whether you’re naughty or nice (even if it isn’t Christmas).
Stephan Argent
Stephan Argent is Founder and Principal at Listenmore Inc, Canada’s leading confidential advisory consultancy that specializes in Agency Search Management. Read more like this on our blog Marketing Unscrewed / follow me @StephanArgent