SEM Agencies: Prepare to Play Musical Clients
Churn alert! How search agencies can work to retain their clients.
Churn alert! How search agencies can work to retain their clients.
Twice annually, Jupiter Research surveys companies involved in search engine marketing (SEM). The last several surveys asked these companies about their use of search agencies. Here are a few of the more interesting numbers:
Our surveys indicate most agency relationships are new and pretty stable. But they also point to imminent change. Quite soon, we’ll see clients change agencies. Churn is imminent. As average click costs increase, clients will scrutinize their agency’s work and consider whether they’re getting the best performance at the best value.
Churn should be expected. With the exception of the occasional brand that’s worked with one agency since the dawn of time, clients change agencies all the time. Often, this is the result of a client-side staff change: a new brand manager has different ideas about either how to market the product or, more frequently, wants an agency she’s worked with before. With creative shops, agency churn is often a key problem. Agencies are highly susceptible to trends: one shop is hot, another clearly is not, and good brands want to work with hot shops.
Of course, when agencies verify this kind of trend, they tend to emphasize the positive; they’re winning clients from their competition. Clearly, someone must be losing. The good news: though clients may be moving around, there’s a steady stream of new ones coming through the doors. The overall percentage of companies looking to outsource SEM tasks is steadily rising.
Yet winning new business is time-consuming and expensive. Agencies must focus on managing the clients they currently have. Sounds pretty basic, right? Well, not always. A few things to keep in mind:
Consistently bring new ideas to your client. Be viewed as proactive. MSN’s upcoming search products will offer a whole new set of optimization levers. This is a huge gift to agencies. Look for opportunities like this. Read every headline and ask how the news could benefit your client.
There’s no perfect recipe for keeping clients happy. Great agencies lose clients all the time (conversely, I suppose, crummy agencies win clients all the time). These steps are a start to help solidify the relationship.