It’s time for an agency review when….

By Steve Boehler – Mercer Island Group

In a perfect world, a client would never have to change agencies.

We don’t live in that world.

Clients need high performing agencies that they can count on day in and day out. Unfortunately, there are times when a client can’t count on their agency and for a number of sound reasons it can be time to put your agency business into review.

There are specific agency issues that, if they occur routinely over time, often are the trigger for an agency review. Notice I said “routinely”. No agency or client is perfect. Things CAN and WILL go wrong, even in the best operations. They key is for the agency to adjust, address the issue, and create processes that prevent the issue from reoccurring.

It’s time to start a review when the following routinely occur:

• Service fails agreed upon expectations: Clients need agencies that they can depend upon. Poor service impacts the client’s ability to succeed, can negatively reflect on the client team within their own organization and can negatively impact the business.
• Strategic work lacks thoroughness, insight and identification of opportunities: There is limited upside to an agency relationship where the agency consistently fails to identify powerful insights that lead to compelling strategies.
• Creative work routinely is off brief: There is little hope for an agency relationship where the agency’s work is routinely off brief, off strategy or off brand.
• Frequent staff changes require constant re-training by the client and/or get in the way of key deliverables: Staff changes are normal in the agency world. People leave agencies all the time and the agency cannot prevent all staff movement. The key is for the agency to make personnel transitions seamless to the client. Agencies need to make sure new staff are up to speed on key projects and deliverables and understand the business and brand. Do not make this your client’s job or they will eventually find another agency.
• Creative work is on brief yet tests poorly in quantitative research: In this case I’m referring to proven quantitative testing methodologies like System1. Creative that fails a proven testing program should not air long (if at all), and an agency that consistently creates creative work that tests poorly is unlikely to help your business succeed.
• Your in-market efforts fail to deliver the necessary impact despite appropriate budget levels: It’s rare for an agency’s work to drive strong business gains if the brand is dramatically outspent.
• However, if your marketing investment levels are competitive and neither the business or brand tracking are responding positively, it is time for a serious discussion with the agency. If efforts continue to fail over time despite adjustments, it’s time for a change.
• The agency is a poor partner with other agencies and client teams: Marketing is a team sport and many clients need multiple agencies to provide the support their business needs. An agency that won’t partner well costs the client money and opportunity.
• Your existing agency roster lacks the capabilities for an important undertaking: Maybe your firm has a big launch ahead in a new channel your roster can’t address or needs support in geography that your existing roster is not equipped to cover.
• You have simply outgrown your agency’s capabilities: Sometimes, for no fault of the agency, a client’s needs increase to such an extent that the existing agency or agencies cannot provide the necessary support. For example, your media agency may have been terrific at regional work and now you plan a large national upfront investment – and the agency lacks the scale, experience and skill to compete effectively in the upfront market.
• Changing agencies is serious business and should not happen without great thought and the absence of other remedies. The above examples illustrate some situations where an agency change may be appropriate.
• Many agency reviews are avoidable. One way to avoid many agency changes is to proactively ensure sound routine conversations (like a “top to top”) as well as annual client-agency 360 assessment processes are embraced by the client and agency teams.

Need an agency review, a client-agency 360 or simply some quick counsel? At Mercer Island Group we have completed hundreds of successful agency reviews, and have a thorough and proven quantitative and qualitative 360 process. We’re always happy to talk about any client-agency challenges.

About Author

Steve Boehler, founder, and partner at Mercer Island Group has led consulting teams on behalf of clients as diverse as Ulta Beauty, Microsoft, UScellular, Nintendo, Kaiser Permanente, Holland America Line, Stop & Shop, Qualcomm, Brooks Running, and numerous others. He founded MIG after serving as a division president in a Fortune 100 when he was only 32. Earlier in his career, Steve Boehler cut his teeth with a decade in Brand Management at Procter & Gamble, leading brands like Tide, Pringles, and Jif.