Monday morning calls that bring long-term client relationships to an unexpected end.  It’s the worst possible way to start the week, and it’s even more painful when there were no warning signs and you thought that the relationship was great.

After any client leaves an agency, there should be a post-mortem investigation. Sometimes the reasons are cut and dried, and give you a clear direction about how to avoid the problem happening again, but other times they’re not immediately apparent, and that can make improving your business difficult.

One of the worst scenarios is when a client who you had a great relationship with suddenly terminates.  One minute everything is rosy and you’re expecting to retain the client indefinitely, and the next, the relationship is over, and you don’t know why.

The importance of communication

Marketing is communication with intent, and the number one skill that anyone working for an agency needs to have is the ability to listen and talk.  To understand what someone wants and find a way to deliver it to them. 

Regular client communication with intent is essential at all levels of an agency. 

The line between account management and client services

One of the first lessons I learned working in a marketing agency was the difference between account management and client services.  A good account manager isn’t always good at client relationships, and a good client services person isn’t always good at managing the account.

Let me clarify.

Account management focuses on the specifics of a commercial relationship that delivers a particular service.  This is the nuts and bolts of the service that the agency is providing.  Account management involves agreeing a brief with the client, and using the production teams within an agency to meet the objectives that have been set. 

An example of account management in a marketing agency might be to take a brief for a set of case study videos to be created, agree a price for the work, recruit the internal skills required to deliver the project, set deadlines, organise filming days, and arrange meetings for approval of the content.

An account manager is the liaison between the needs of the client and the abilities of the agency.

Client Services is a softer set of skills. This is the relationship, the conversations, the emails, the rapport.  Good client service – like any kind of customer service – keeps the client happy and makes them willing to spend money with you.

Client services is communicating the value of the work that is done within the account.

When client relationships get too cosy

The biggest risk for client relationships is complacency. When the client services part is prioritised over the management of the account, the relationship becomes the key focus.  The client becomes more of a friend than a business associate. 

Both sides might overlook things when feelings are involved:

• A piece of work is a day late, but that’s OK, because Alison is a friend and won’t mind.
• You missed a target, but that’s OK because Tony and I played golf last week and went for a beer.
• There were mistakes in the report, but that’s OK, because Sophie is a good laugh.

As an agency you can become complacent without realising, and the problem with complacency is that it ignores consequences.

The short-term implications of using a personal relationship with a client’s marketing manager to get a few days leeway might seem minimal.  It is storing up problems. Ultimately, your relationship isn’t with Alison, Tony or Sophie, it’s with the company that employs them.  Clients pay for the a service, not a friend. At some point, work that is substandard or late will attract the attention of the person who’s paying the bills. They will inevitably decide that the value is not there.

Getting relationships with clients right.

It’s important that you have good chemistry between clients and client facing staff, but the fundamental aspect of the relationship needs to be professional and concentrate on delivering great work.

An account manager working as the representative of the client in the agency and ensures that what is delivered meets the objectives is an massive asset to your agency.  One that simply makes good friends could be a liability.

Good chemistry is an advantage and friendships are fine. But, when client relationships become too cosy, they could be papering over the cracks in your business.

Can we help?

Are you struggling to retain clients that you expect to keep?

Talk to us and we can work through your client relationship questions. We’ll help you identify what you can improve to increase retention and grow your business through training and insight. Simply fill in your details below, and we’ll call you back to discuss your options.