Electronic Retailer February 2013 - 46

[Perspectives: ClientRelations]

Maximize the Client/Agency Relationship
By Robert Yallen

T

he days of
100-plus-year
relationships like
JWT and Unilever or BBDO’s
90-year agency/
client relationship
with General Electric are gone. We live
in a different world today, and with the
fragmented media environment, the
duration of the typical agency/client
partnership has been steadily slipping.
Twenty years ago, an agency’s tenure
with a client averaged about eight and
a half years, but now, relationships
usually end in less than three. The
decreased tenure can be attributed to
less formal agency reviews, in part.
Another key factor is today’s dismal
CMO tenure. According to a paper
from Spencer Stuart, the average tenure
for CMOs at the top 100 branded
companies is just 22.9 months.
Therefore, it serves us as agencies
to have specific strategies in place to
secure, strengthen, and sustain relationships with clients. Here are some of the
ways that we can maximize the agency/
client partnership from the standpoint
of duration and ROI:
Chase Business You Can Win
Many agencies spend hundreds of
thousands of dollars or more in costs,
labor, and out-of-pocket expenses on
pitches—money that can be recovered
only over a long, profitable relationship. If your agency doesn’t have a good
chance at winning a certain account,
don’t try. Put your resources where they
can be the most effective.
Win the Business and Win the War,
Not the Battle
Some agencies try to win business by trying to “buy” it with lower commissions
and fees, hoping eventually to either raise

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electronicRetailer | February 2013

the compensation package or putting
the “B” or “C” team on the account to
minimize costs. A one-sided relationship
like this won’t work. You can reduce fees
and commissions that can ultimately be
recouped or exceeded with an incentive
based upon hard and soft measures; this
creates a better partnership since the
agency is vested in its success.
Regardless of compensation structure, any successful relationship must
start by clearly defining objectives and
success measurements. Furthermore,
the agency must have an in-depth
understanding of the client’s industry
and learn to speak its language.
Invest in the Client and the Relationship
to Create Strong Partnerships
One of the most important aspects in all
relationships is trust, but building trust is
a process, and the partners must begin by
building a strong relationship. Companies rarely change other partners, such as
accountants and law firmsin part because
these relationships are fiduciary-based; as a
function of the company’s inner workings,
they are by definition more encompassing.
Get to know your clients as individuals—don’t just buy them an occasional
lunch. Learn how they think and
anticipate what you can do to help
solve their problems, even if it’s beyond
your “official” scope. Know what makes
up their process, politics, education,
lifestyles, hobbies, and other interests.
Maintain a Strong Relationship
Conduct informal reviews of the relationship periodically, and formal reviews at
least annually. Ask the hard questions,
even if you don’t like what the answers
might be. In order to properly manage
the relationship, you need to be at the
helm. Set reasonable expectations and do
everything in your power to exceed them.
Like a marriage, the agency/client

Robert Yallen is the
president and CEO of
the Inter/Media Group
of companies. He can
be reached at (818)
995-1455 or via email at
ryallen@intermediaadvertising.com.

relationship must evolve jointly. Watch
out if your client becomes disengaged
in the relationship and/or does not look
to your company to solve its marketing/advertising problems. You can grow
together through the changes, with the
agency becoming the backbone of the
client’s marketing efforts as a constant
supporter and innovative partner.
How You Win Business Is How
You Lose Business
Client/agency relationships end usually
in one of four ways: (1) The client’s
business is not working; (2) There’s a
change in the management; (3) A strong
value proposition arises from a competitor; (4) You lose touch with the most
senior-level executives.
If your agency is properly positioned,
it is less likely to shoulder the burden
during a downturn. To avoid problems
with management changes, make sure
you build relationships throughout your
client’s organization, as well as with its
key vendors. Anticipate that your competitors will chase your client’s business,
and make sure your value proposition
is at the top of your client’s mind, and
that it adapts to changing times and
economic environments.
As my father, Sydney Yallen, a true
advertising pioneer and industry leader,
used to say, “We are in the communication business; therefore, we need to do
a better job of communicating among
ourselves and with our clients.”
Electronic Retailer February 2013

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