It’s all about relationships with clients, and apparently more and more clients are not comfortable with the relationships they have with advertising agencies. One of radio’s biggest strengths has been the ability to develop strong, long-lasting relationships with clients. A new study by a company called Advertiser Perceptions found that 58% of respondents plan to review their agencies in the next year.
The Wall Street Journal has the details about the new story which will be released in September. Perceptions Group CEO Ken Pearl tells the Journal that, “The pressure that agencies are under has been growing. We’ve probably seen more change and more negativity in the marketplace than ever before.” Trust and being able to compete in the digital space are two big issues agencies are being criticized about.
The Journal reports details in the study show that an agency’s ability to develop and execute a strategy was the number one reason for choosing a new agency — a third of the respondents citing it as the most important factor. Attention to a client’s needs, the cost of doing business with an agency, the agency’s talent, and the agency’s analytics capabilities were the next most important factors in choosing an agency partner.
The client categories most likely to hold reviews in the next year were beauty and toiletries, home and appliances, and pharmaceutical and healthcare, according to Advertiser Perceptions’ research.
This is indicative of the times in which we live. While there is still such a thing as a good relationship, a good relationship is no longer strong enough to keep a clients business. People review insurances and other expense contracts every year. Staying lean is a corporate objective. With this in mind, that good relationship is only part of the business partnership equation. The good relationship will always get you a conversation, but not necessarily the business. That is why is mission critical. Without it, you don’t even get a call. You just get a cancellation.