Why do clients dump agencies?

Study reveals reasons for client / agency splits - taken from Precision Marketing. 22.10.2007

Breakdowns in client and agency relationships are due to failures from both parties to listen to each other and quality of personnel, a study from the AAR reveals.

A survey conducted by the intermediary shows that failure to listen to each other, quality of personnel and inflexibility are sited by agencies and clients as the most common reasons why relationships breakdown. However, 81 per cent of clients and 75 per cent of agencies believe setting clear expectations and clearly defining roles are the best preventative measures.

Over 80 per cent of clients said growing dissatisfaction with their agency’s service output was a key early warning sign to problems ahead. Over 40 per cent of clients are dissatisfied with agencies because of their lack of delivery, 34 per cent are dissatisfied with agencies who don’t meet briefs, and 33 per cent of clients are left unhappy because of declining agency work.

In contrast, only 41 per cent of agencies focused on clients’ dissatisfaction with output or service. Over half of respondents said their dissatisfaction with clients was due to people and relationship changes, while 21 per cent of agencies were left disgruntled because clients were not happy with their staff.

Kerry Glazer, chief executive at AAR, comments: “There needs to be a more concerted effort upfront to establish how the client and agency are going to work together. Our research indicated that a break up could be avoided if working practices were agreed and formalised in writing and practice at the start of the relationship, but the reality is that the focus is on establishing commercial arrangements. This type of forward planning could make for more enduring and successful relationships for both parties.”