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Lack of Agency Effort
First, there is often a lack of agency effort. Agencies, whether in lead generation or marketing, frequently deal with high client churn. To cope with this reality, many established agencies have grown comfortable with some level of turnover. They have adopted a mindset that views client churn as an inevitable part of the business. As a result, these agencies may not fully invest in their clients' outcomes.
Typical scenario:
- Ten clients acquired:
- Three receive no results and churn.
- Five get "okay" results.
- Two are exceptionally easy to succeed with.
Agencies tend to focus on the top 20% of clients who are easier to satisfy, often neglecting the three clients who churn quickly and even the five who require significant effort. Conversations with agency owners often reveal this pragmatic, if not cynical, approach to client management.
Lack of Agency Honesty
The second issue is a lack of agency honesty. It's common for agencies to overpromise on the results they can deliver. No agency can claim a perfect track record with every client. Mistakes happen, especially in the early days. However, many agencies fail to acknowledge the numerous factors beyond their control that can impact the success of a campaign.
Lack of Foundation
Even established agencies doing solid work cannot overcome fundamental flaws in a company's strategy or structure. It's important to recognize that agencies are limited by their experience and the dynamics of their relationships with clients.
The Biggest Lesson: Qualifying Prospects
The biggest lesson learned by many in the agency world is not how to close more deals, but how to close fewer, more qualified deals. In the role of an SDR or AE, the focus is often on qualifying out prospects who are unlikely to close. As an agency owner, the emphasis shifts to qualifying out prospects who are unlikely to achieve the best possible outcomes. This shift in perspective builds greater trust throughout the sales process and prevents the heartache and frustration often felt by CSMs dealing with poor-fit clients passed along by sales teams trying to meet quotas.
Key to a Successful Agency-Client Relationship
The key to a successful agency-client relationship lies in:
- Honest communication
- Realistic expectations
- Strong foundational strategy
Agencies must prioritize client outcomes over client acquisition and be transparent about the challenges and limitations they face. Clients, in turn, should seek agencies that align with their strategic needs and are willing to address foundational issues. This approach not only fosters better results but also builds lasting trust and partnership.
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