Even in good times, agency-client relationships can be a delicate dance. But with the economy still stalling, the push-you-pull-me inherent in such relationships can be even
more problematic. To get a sense of the current state of agency-client relationships, PR NEWS and Lumin conducted an informal poll of the issues confronting companies and their PR
agencies. Lumin is a new "intellectual collaborative" of five mid-sized PR agencies: Carter Ryley Thomas, Padilla Speer Beardsley, PainePR, Patrice Tanaka & Co. Inc. and
Peppercom. Collectively, the firms have nearly 300 employees, 11 offices and approximately $35 million in fees.
As the survey shows, media hits, while still important, take a back seat to ROI as the most important criteria in the agency-client relationship - a reflection of the current
climate in which numbers are king.
Innovation is another key toward enhancing the relationship, as companies increasingly rely on agencies to come up with new and innovative ideas to drive sales. The biggest
hurdle remains an inability among agencies to understand their clients' business objectives while trust and cost also weigh heavily on relationships.
Since the response rate to this particular survey was minimal we expect to revisit the issue early in 2004 with the hope of garnering a lot more responses.
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How effectively do you and your agency...*
|
|
| Address business objectives |
100%
|
| Communicate with each other |
95%
|
| Confront emerging issues |
90%
|
| Solve problems |
95%
|
|
What is the biggest roadblock in effectively communicating with your agency?
|
|
| The team members are too junior |
20%
|
| Don't understand our business objectives |
30%
|
| Not responsive |
20%
|
| Trust |
20%
|
| Senior staff in unavailable |
10%
|
|
Where does trust rank among the criteria for your PR agency?
|
|
| Most important |
55%
|
| Somewhat important |
35%
|
| Not very important |
5%
|
| Doesn't affect my choices |
5%
|
|
How important are each of the following criteria in your relationship with your PR agency?
|
|
| Return on investment |
80%
|
| Publicity results/media hits |
60%
|
| Strategic counsel |
70%
|
| Staff resources available for internal projects |
45%
|
| Innovation and creativity |
65%
|
| Cost and budget |
55%
|
| Trust in the relationship |
70%
|
| Responsiveness on the part of the agency |
90%
|
| Having a good feeling about them |
75%
|
|
When your agency pitched your business, did it promise you senior staff and strategy and then replace it with junior staff after
awarding the account? |
|
| Yes |
20%
|
| No |
80%
|
|
In 2003, did your agency deliver enough to justify the PR budget spent?
|
|
| Yes, they delivered above and beyond expectations |
15%
|
| Yes, they were right on track with expectations |
70%
|
| No, they failed to meet expectations |
5%
|
| No, they charged too much for what we got |
10%
|
|
In 2003, did your PR agency provide innovative new offerings that align with business objectives?
|
|
| Yes, they always bring fresh new ideas to the table |
20%
|
| Yes, but budgets prevent them from breaking out new ideas |
60%
|
| No, they only bring forward new ideas when asked |
20%
|
|
How do you measure the success of your agency?
|
|
| Media clips only |
10%
|
| Change in sales |
5%
|
| Corporate visibility |
60%
|
| External measurement tools |
25%
|
|
Can PR innovation affect your success in the marketplace -- in terms of growth of business/sales/profits/market
leadership? |
|
| Absolutely |
50%
|
| Only if it is aligned with internal business goals |
35%
|
| Yes, if it is aligned with measurement tools |
15%
|
|
Which do you emphasize more with your agency -- internal communications or external communications?
|
|
| Internal |
0%
|
| External |
65%
|
| Both are equally important |
35%
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*Among respondents answering affirmatively
Source: Lumin Collaborative