Why do clients fire their PR agencies?
In the absence of compelling empirical evidence, I'd have to say it's because agencies practically beg them to do it. I'm not implying that PR agency reps walk around the
client's office with signs on their backs saying, "Fire us, please." But sometimes it almost seems as if they should.
I can hear you say, "That's crazy." Is it?
Once you remove from the equation decisions made as part of larger business issues --clients going out of business or being acquired, or budgets being slashed across the
board --agency terminations are easier to analyze. Basically, they fall into three scenarios:
- The agency that pitched my business is a different agency than the one that's actually servicing my account.
- I'm not sure my agency team really understands my industry or my needs.
- This is costing me more money than I ever thought it would.
Looking at it from these three angles, firing your agency makes sense. It isn't a matter of not delivering results but rather of not managing client expectations from the
get-go. But what about the flip side--keeping the business rather than losing it? That's what makes client-agency relations a fascinating subject.
The fact is, the way a typical PR agency is structured makes it easy to fall into the "fire me, please" trap. And that says more about our industry's approach to client
service than it does our clients' approach to agency retention. Why?
For starters, we don't always deliver the "senior people" promise because the senior partner is off chasing new business or servicing the big accounts. The other senior
people are busy trying to hit their billing targets. Account churn is a real problem, too, as anyone in charge of recruiting for a big agency can tell you.
So what's to be done? On the client side, don't be afraid to hold the agency to its promises - and fire it if it doesn't deliver. But first, do a value-added analysis. How
much is its industry or domain knowledge worth? How difficult would it be to replace? Is it a staffing problem that can be fixed? Or is it basic lack of interest in you as a
client?
Then do a cost-benefit analysis. Can you take the work inside? Can you restructure the fee (and in the process, catch the agency's attention)? Or, if the work is being done
on a project basis now, is there enough to justify putting the agency on a retainer?
Also, how realistic are your goals? Given the intense competition for media attention at all levels, maybe high-visibility coverage for your executive team or products isn't
likely to happen soon. What about a trade-focused media outreach, with events like client briefings on important industry issues? What about bylined articles? What about speaking
opportunities? Maybe a client-oriented newsletter or electronic direct mail makes more sense if your real goal is finding ways to speak to your customers.
Contact: Greg Miller is president of Miller DeMartine Group, a full-service PR and marketing communications firm based in Westport, Conn. He can be reached at 914.834.1868; [email protected]
Does Your Firm Measure Up?
Miller DeMartine Group lists the top 10 reasons why companies should think about firing their current PR agencies. Take the test, and decide whether it's time to get a new
agency by the scorecard below.
1. You find typos in the press release. 10 Points
2. Your account team still needs nametags because it changes so often. 10 Points
3. The agency asks you to suggest subjects for the next two press releases. 10 Points
4. You need an accountant to figure out the quarterly overage bill. 10 Points
5. The agency's "big idea" costs as much as the next six months' retainer. 10 Points
6. They've already burned through your PR budget for the year, and it's only July. 10 Points
7. The last time you saw an agency partner was the day he or she pitched the business. 10 Points
8. Your account team focuses on results only when you focus on results. 10 Points
9. The agency calls to set up a brainstorming session with your senior management...again. 10 Points
10. Your senior management asks you how the PR program is going. 10 Points
- 70-100 Points: It's a no-brainer - fire 'em today.
- 50-70 Points: Ask for a rebate.
- 20-50 Points: It does raise a lot of questions.
- 10-20 Points: You've got a winner.