If the hardest thing for marketing agencies in 2024 is to obtain clients, retaining them could be said to be the second hardest. Somewhat surprisingly, there’s plenty written on how to obtain clients as an agency, from cold emails to references to ads to everything in between. However, for retention, the topic is considerably less common.

With that in mind, let's touch on retention. How does client retention work? Why do clients leave? And what is needed to get them to stay?

What do clients want?

Surprisingly, agencies often enough to not necessarily put themselves in the shoes of clients when considering why they’re making the decisions that they’re making. For clients, the decision on agencies essentially boils down to:

1. Performance
2. Branding
3. Transparency

Performance

This one is quite self explanatory. Generally speaking, an agency is hired to generate revenue. If the revenue is not generated, the client doesn’t remain. If there’s one part of client retention that everyone understands, this is it. Therefore, there’s not much to add here.

Branding

Branding is frankly an odd word to use here. The word “leadership” or “innovation” could have been substitutes, but those words feel like they’ve been burned by far too many people (every absurd business guru out there in particular) to be usable. The essence of this, however, is this: An agency can not be perceived as just delivering ads and that's it. It has to be perceived as people who have superior knowledge and who are extremely competent. “Strategy” not “tactics” is another way to phrase it.

The best way to ensure this is to properly walk people through what's being done, why it's being done, how it's being done. Flex the knowledge and skillset the agency has. It's even better if there’s social proof to back it up (other client testimonials, etc.). The stronger your brand, the lower the chance they even think of replacing the agency.

The alternative to this is that, without brand power, even with a high performance in your marketing, the client will think they can do it themselves. They will underappreciate the work that has been done and think of going their own way. The more they perceive the work as being complicated, difficult and well done, the less likely they will.

Transparency

Much like with Performance, transparency is, up to a point, self explanatory. However, it often feels like agencies don’t fully grasp how to properly be transparent. Nor how to take advantage of it.

Transparency doesn’t just mean sharing weekly reports and meetings. Much like mentioned above, share strategy. Talk about potential paths that can be taken, their pros and cons and what will be done. Transparency of not just results, but also process and data. This both helps building your brand and also makes the client feel they understand what's being done. Even tactics that didn’t work out (assuming the cost is small) is a good thing to share. Ultimately, the more the client feels they grasp whats being done and that its difficult and complicated work, the better for the agency.

Conclusion

To conclude, keeping a client is in a sense a constant sales process wherein the agency is convincing the client that their value is beyond just the creation of ads. Agencies that nail down this process, will likely succeed in not just retaining, but expanding their relationship. Those who aren’t as successful, will likely end with the client underappreciating their work and thinking that they can do without it.