Why Clients Leave Their Agencies

It’s the kind of knowledge every agency wants to get their hands on – why clients leave – and in the latest Digital Marketing Outlook from Volume 1 of the 2016 SoDA Report, the international association of leaders from agencies the world over have found the answer.
Turns out, just like in any relationship, miscommunication is a root problem. While clients list a stack of reasons for their termination of a partnership, agencies consistently list management issues and changes as the reason.
The percentage of agencies laying the blame on client management changes as a reason for breaking up sat at 56 per cent in the 2016 report, up from 33 per cent in 2015. That’s 19 per cent higher than the second reason agencies list for why relationships end.
Management changes as a reason jumped up for clients as well, from 11 to 18 per cent year-on-year. But despite this figure, it’s still the seventh reason listed for clients to split from agencies.
Thirty-seven percent on both sides attribute the end of their relationship to the issue of pricing/value, with agencies struggling to prove the value of their work through measurement, and clients expected to present impressive deliverables.
“Agencies owned by holding companies feel this more acutely with 48 per cent selecting pricing/value as a reason for termination versus 35 per cent of independent agencies,” the report said.
“This could be because holding company agencies are often sitting on bigger budgets and clients expect greater efficiencies.”
After pricing/value, the client-side response was focused around unhappiness with strategy, creative and project management — “the bread and butter of most client and agency relationships”.
What clients want, according to the SoDA report, is for these areas to remain top priority, which would explain the average level of satisfaction clients are experiencing with agencies.
“Agencies that turn a blind eye to why their clients are really leaving will fail to address key improvement areas. The dysfunctional circle will continue until a new entrant comes along to disrupt the cycle,” the report claimed.
In 2015, only six per cent of clients listed understaffing or inexperience as a reason for termination, but this figure jumped to 21 per cent in 2016.
“As agencies struggle to stay competitive and meet client needs, they are sacrificing talent and sufficient skill development — and clients are starting to notice,” the study added.
“We expect inexperience to be an increasingly prevalent causal factor in agency-client relationships going south, as the percentage of agencies who indicated they are not providing any training to their staff almost tripled in 2016, growing from five per cent to 14 per cent.
“Overall, client expectations are increasing across the board and agencies haven’t caught up yet. And they aren’t always bringing their business to other agencies. Many are also taking it in-house, which came out in the colour commentary provided by respondents.”
You can see the reasons clients and agencies part ways in the infographic below:
Please login with linkedin to comment
Advertising Standards Bureau digital marketing outlook Global Executive Member Meeting government Natalie Dormer relationship SoDA report termination Trees are hugging backLatest News

Photo Gallery: Inside Thinkerbell’s Brand New Swanky Sydney Digs
Indie creative, media and PR agency, Thinkerbell, has capped off a stellar 12 months, moving its Sydney office into swanky new digs in Redfern in the city’s inner west. Following a flurry of new business wins and hires, the 40-strong Sydney team shifted out of its old offices in Surry Hills to the new premises […]

Presser Gets Bungled & Buzzy After Politician Accidentally Swallows A Bee Live To Air
B&T does warn readers that animals were in fact harmed in this pollie-eats-bee live-to-air TV story.

Buzzfeed, Inc. Launches Lighthouse In Australia, UK And Beyond
BuzzFeed, Inc. today announced that Lighthouse, an offering for advertisers across its platforms that brings brands closer to its audience, is now available to clients internationally. Lighthouse leverages BuzzFeed’s tech-powered foundation and diverse array of content across BuzzFeed, Inc. – which includes BuzzFeed Entertainment, BuzzFeed News, Tasty, HuffPost and Complex Networks – to provide advertisers […]

Selfwealth Lands Clems’ Alex Clarke-Groom As Head Of Marketing
Alex Clarke-Groom insists he's not the man for dodgy stock market tips after joining online trading platform.

Kyle Sandilands Set To Captain Seven’s Australian Idol Reboot
Kyle all set to return to our TV screens! Albeit bleary-eyed and covered in vomit after birth of first child last week.

News Corp Launches Cost Of Living Series Smart Savers Amidst Growing Crisis
News Corp Australia has today launched a six-week cost of living editorial series, Smart Savers, to help its audiences make informed decisions to navigate the rising cost of living. According to News Corp Australia research consumers are spending, on average, 60 per cent of their incomes on bare essentials including food, fuel, housing and insurance […]

Report: 56% Of Women In Australian Media Are Dissatisfied With The Progress Of Their Careers
The Women in Media Industry Insight report is here! And B&T's lead image choice isn't the only thing to be angry about.

Seven Claims Sunrise Has Already Won 2022’s Breakfast Ratings War
At his age, it's rare Kochie's premature about anything, but apparently not Sunrise's claim to 2022's brekkie crown.

JCDecaux Launches Immersive Marketing Event Via Wangaratta Council
Wangaratta readers you demanded more news and B&T is delivering on its promise today.

oOh!media Launches Dynamic Screen In Perth’s Claremont Quarter
oOh!media continues to expand its large format digital network in Western Australia, launching a full-motion dynamic broadcast screen at Claremont Quarter, a premium retail and lifestyle destination in one of Perth’s most exclusive suburbs. Located to the west of Perth’s CBD, Claremont Quarter is a prestigious luxury-focussed shopping environment comprising more than 120 high-end retailers […]

SCA Announces Slew Of Regional Promotions With “More To Come”
SCA announces a number of new regional hires with not one person called Barry, Stevo or even a Gayle.

“Hell Hath No Fury!” North Queensland Woman Takes Out Full-Page Newspaper Ad On “Filthy Cheater” Partner
Every bloke named Steve in Mackay & the Whitsundays shitting themselves after being outed for adultery in local paper.

Ex-Havas Chief Mike Wilson Joins Hatched, As Agency Announces New Sydney Office
Thought Mike Wilson had retired to a life of golf and irritating his wife? Think again, as he pops up once more here.

Sunday TV Wrap: The Block Continues To Chip Away & Almost Cracks A Million Eyeballs
Much like the commemorative tea towel or a Margaret Fulton cookbook, The Block is the gift that just keeps on giving.

Man Of Many Pinches News.com.au Producer John Guanzon As Head Of Social
New.com.au's John Guanzon taking his in-depth knowledge of illegal bikie gangs & the Kardashians over to Man Of Many.

Lachlan Murdoch Sends Legal Threats To Crikey Over US Capitol Riots Article
Crikey bosses in urgent need of change of underpants after legal letter arrives bearing the Murdoch family crest.

Dentsu Posts Impressive Q2s, As Revenues Soar Almost 20%
Nauseous sake hangovers all round at dentsu's Tokyo head office this morning after announcing impressive set of Q2s.

T Australia Releases Inaugural Culture Issue As Australian Arts Industry Continues Revival
T Australia: The New York Times Style Magazine’s inaugural Culture issue released today, featuring a cover depicting Australian dancer and model Rhys Kosakowski in fashionable motion and Australian artist Harold David creating “Thigh High and Safety Net” in the background. The abstract expressionist artwork was painted live as photographer Levon Baird shot the cover, and was […]

Ethnolink Releases Multicultural Flood Warning Campaign Following Tragic Deaths
Multicultural communications agency Ethnolink has developed a culturally and linguistically diverse (CALD) campaign for NSW State Emergency Service (SES) that delivers flood warning and safety messages for multicultural communities in Sydney’s north-west. The campaign, which will run across a range of channels, has been launched on the back of news that three people in NSW […]

Andy Flemming Promoted To 72andSunny Creative Lead
72andSunny's Andy Flemming's bank account a little sunnier today too after recent promotion and pay rise.

Google Agrees To $60 Million Fine For Misleading Australian Users On Data Collection
Google Australia cops $60 million fine from the ACCC. Confirms change in car ash tray should just about cover things.

Poms Encouraged To Come “Work In Australia” Via New Campaign
With worker shortages a problem worldwide, new campaign set to make them even worse in the UK.

Domain Launches Spring Campaign Via DDB Sydney
The joy of home ownership revealed in new Domain work. The nine lifetimes of debt required conveniently brushed over.

Hogarth Names New GM, Head Of HR And Talent Director
Hogarth's teaspoon shortage in the office kitchen laid bare this morning with the arrival of three new recruits.

Study: Aussies Increasingly Searching Cost Of living, Interest Rates & How To Save
Study finds Aussies increasingly Googling cost of living & how to save. However, p@rn still winning by a long measure.

Scroll Media Signs Exclusive Ad Representation Deal With CNET, ZDNET & GameSpot
Scroll Media's Kilometrico pen running dangerously low after inking not one but three new deals.

Publicis Brings Sustainability Consultancy Salterbaxter To Australia
Publicis announces Salterbaxter to launch in Australia. Bad news if you were hoping for Taylor Swift tour news today.

New KIIS Campaign Comically Adds Logo To Real Life Scenarios Via ARN And Emotive
It would appear the inspiration for these witty new KIIS ads is a really bad ecstasy experience.

Stratosphere And AJF Team Up For NED Australian Whisky Campaign
Stratosphere and AJF have collaborated with Top Shelf International’s NED Australian Whisky brand for a campaign featuring a combination of TV sponsorship and out of home placement. The campaign features a range of 15 second TV commercials live in key AFL and NRL games on Thursday and Friday nights across regional markets. The sponsorships will […]

Kyle Sandilands’ Newborn Makes Radio Debut, Less Than 24 Hours After Being Born
Think Kyle is a domineering, self-aggrandising bully? Let your paternal instincts wash over with these cute baby pics.

Coca-Cola Set To Release ‘Dreamworld’, A Flavour That Tastes Like Your Subconscious
Coke unveils new beverage that tastes like your subconscious. Alas, sadly not returning cocaine to the original recipe.

Sunrise Team Caught Playing A Game While Kochie Delivers Financial Report
Sunrise presenters break golden rule - when Kochie's delivering the All Ords, it's backs straight & ears peeled.

Tiger Beer Celebrates Kick-Off For Football Season With New Campaign, The Golden Son
To celebrate the start of this year’s football season, which kicked off last weekend, Tiger Beer has unveiled its latest global campaign – ‘The Golden Son’ – starring official Tiger brand ambassador Son Heung-Min. ‘The Golden Son’ celebrates Son’s most recent triumph: in May, he became the first Asian player to win the Premier League’s […]

Jägermeister And Connecting Plots Launch ‘Win A Home Bar’ Promo
Nothing can have you waking up with a sweaty stranger in your bed quite like a night on the Jägermeister.

“Lets Go Girls!” Last Chance To Secure Your Women In Media Tickets!
In exciting news, Women In Media tickets still available! More excitingly, B&T staff choir banned from performing.

Kurt Burnette Claims The Comm Games Will Land Seven 2022’s Ratings Gold
Some ratings bragging emanating out of Seven this morning. B&T expecting Nine's riposte in the next 30 to 45 minutes.