Marketing teams and their agency partners can only create exceptional work when they’ve cultivated a strong relationship founded in mutual trust. This trust goes both ways.
Agencies must be entrusted with high-quality client data as well as the space to craft powerful strategies. At the same time, they are expected to develop unique strategies that have a tangible effect on their clients’ bottom lines.
So, what do marketers think of that dynamic, and do they feel their agencies are delivering? The answer is that agencies aren’t getting great grades.
Funnel’s research shows a stark disconnect
To better understand the dynamics of the agency-client relationship, we (together with market research firm Ravn Research) surveyed 327 in-house marketing professionals and agencies around the globe. We wanted to know how new developments in technology and data regulations are affecting that relationship.
When it came to trust, we sought marketer perspectives on whether agencies are providing innovative ideas, if they set realistic expectations, if they can scale efforts to save money and more.
The results should put agencies on notice.
Agencies seem uninterested and underdeliver
One of the biggest insights from the research showed that only 40% of marketers say their agencies are invested in their business's long-term growth and success. Ouch.
Marketers are looking for agency partners who care about the solutions and strategies they propose. From their perspective, they are shelling out large sums of money (which could be invested elsewhere) in order to turbocharge performance. Whether it’s SEO work, branding, advertising, growth marketing or any other discipline, marketers are seeking agencies that exponentially amplify the effects of their efforts.
Less than half (47%) of marketers say their agencies focus on measurable outcomes and results. Some marketers see their agencies employing a rinse-and-repeat approach.
“Prices are high, results are mixed at best, and the agency team seems to learn nothing over time. We’re just replaying the same tactics over and over again,” said one marketing leader who requested anonymity for candor.
Other marketers lamented the fact that their agencies simply don’t understand or are interested in the products and services they are working to help sell.
A general lack of trust
Shockingly, more than half of in-house marketers don’t trust their agency partnerships, especially when controlling costs and delivering tailored solutions.
Let that sink in for a moment.
The entire crux of the marketer-agency relationship must be built on mutual trust in order to craft the best possible work. And the majority of marketers say that trust is missing. Wow.
Agencies of all stripes must examine their own commitment and focus on their client’s success. The industry is only getting more competitive and difficult to succeed. If clients start adopting the perception that the work deliverable is staid or not in their best interest, agency leaders should expect lower budgets and higher churn.
Higher scores for communication
Things aren’t entirely doom and gloom for agencies, though. Marketers gave agencies better scores for their ability to share honest feedback and set realistic expectations. Agencies also scored higher for their ability to regularly report.
However, each of these points should be table stakes when dealing with clients. An inability to set expectations only sets the agency team up to fail.
The silver lining
As is the case in any industry facing upheaval, it’s often beneficial to run into the fire (albeit strategically). A lack of trust across the board from marketers means there is a huge opportunity for agencies that can show they are truly invested in their clients’ success.
Many marketers are overwhelmed by thousands of ad platforms and reams of data generated daily or even hourly. Agencies that can help alleviate this burden can ingratiate themselves with marketing teams.
After all, many marketing teams don’t have the budget to hire data specialists or advanced strategists. That’s exactly where agencies can step in to regain trust. Take it from Andrea Vit, CEO and founder of Storeis.
“To build a trusting relationship with clients, you need to share knowledge — what lies behind the numbers,” said Andrea. “When you share insights, [clients] can better understand the context we’re working within and become true partners.”
Building shared trust and success
Data can be a resource for so many aspects of the client-agency relationship. It is an unbiased centerpiece around which each side can challenge the other. It also creates a foundation for a shared and unique vision.
So, perhaps, high-quality data is the foundation upon which great relationships are built using trust, understanding and shared goals.
If you’d like to learn more about the pressures facing agencies and marketers, as well as how agencies can best position themselves for success moving forward, download our research report Agency Acceleration today.