If your largest client was to pick up the phone and give notice tomorrow morning how would your agency respond?
It’s a question I often ask when speaking with agency owners, and it is surprising to see that it still tends to be met with an ‘elephant in the room’ reaction!
The average length of an Agency/Client relationship is around 3-5 years, meaning there can be an inevitable complacency that can sometimes set in towards the end of that period. This can especially be the case if impressive results and R.O.I. are consistently delivered, or even more so when have a particularly strong relationship with your Marketing contact.
For a quarter of agencies, their biggest client accounts for a third of their revenue. But then out of the blue, your contact moves on. The client hits upon financial difficulty, or their growth strategy no longer includes you. A third of your revenue!
Emergency bunkers and cat-kicking aren’t normally required if a strategy is in place, and for many agencies this simply means a healthy pipeline of new business opportunities as opposed to cut-backs or worse still, redundancies to be made.
Of course, building that pipeline is possibly the biggest challenge to any agency growth. But be it referrals, intermediaries, events, social media or whichever method works best for you, thinking about that strategy now and asking yourself that uncomfortable question about your largest client, can only be a positive thing. Even if losing them is ‘unthinkable’!
by Gary Burrell
Published date: July 8 2019