Client acquisition, retention will be more challenging in 2023- Agency leaders
By Zion Rufus
Despite economic uncertainties, 98% of marketing agencies have expressed confidence about the outlook for 2023. However, this optimism about revenue and growth does not extend into client acquisition and retention.
In a CallRail survey of more than 600 agency employees on specific agency concerns, practices, and goals in 2023, 79% of agency marketers said that they think client acquisition will be more challenging than it was in 2022, with 81% predicting the same for client retention.
In an interview with MARKETING EDGE, some agency leaders confirmed that acquiring new clients and retaining existing ones will be an even bigger challenge in 2023 as a result of several economic headwinds.
Muyiwa Aleshinloye, an Executive at DigiClan Africa revealed that these challenges stem from concerns such as the 2023 economic outlook, rising inflation, BREXIT, war in Poland, and massive layoffs.
According to the digital marketing professional, the belief is that in the marketing and advertising industry, there will be a few key shifts at the global stage that would have a massive impact on local agencies, particularly those that are part of a network.
Omokehinde Thomas, digital group head at The Redwolf Company believes that issues surrounding client acquisition and retention is a never-ending circle.
“It only just became more prominent in recent years,” she said.
“And this is because clients are beginning to demand more from their agency partners and are becoming more strategic in their approach and how it directly or indirectly affects their bottom line/Revenue. No more fluffy ideas, no more activations to make sure budgets are spent, no more vanity metrics. Now every marketing idea/spend is strategic and concrete.”
According to Thomas, some agencies are finding it difficult to evolve with these demands and the ones who are ready do not have the capacity to do so. She pointed out that there are also clients who are evolving at a rather slow pace and cannot keep up with the rush from their agencies, therefore bringing about friction, and making it hard for both parties to work together as partners.
Validating Thomas’ viewpoint, Wale Adegoke, CEO Nimbus Media also told MARKETING EDGE that client acquisition and retention has been challenging since 2021.
On her part,Tolulope Olorundero, CEO Mosron Communications believes client acquisition will be challenging as businesses become more cost conscious and explore ways to reduce expenses while aiming to get incredible results. She also pointed out that consumers are now more choosy and organizations will need to explore other creative ways to attract and retain their attention.
She maintained: “Clients who want to remain competitive have little choice than to work with creative agencies with a history of delivering results.”
Omobolanle Akingbala, Head of brands and strategic partnerships Zedi Africa says client acquisition will probably become tougher because brands are now demanding agencies to create annexes in their offices. This move is supposed to give agencies an inside look, know how it works from the inside instead of forming opinions as an outsider. Meanwhile, other brands are leaning towards creating their own in-house agencies.
“So both scenarios point to the desire of the client to keep the creation or leading of their communication happening from within the company, not from outside. This brings into focus the question; agencies thinking of what their can add or how they can improve their service offerings to stay relevant to their clients. Many agencies are going the route of automation and tech, ” Akingbala added.
Damola Richard Salvador, CEO and Lead Strategist, DigiSplash told MARKETING EDGE that the prevalent problem is that most marketers don’t think like business owners.
“As communication professionals your value should help the business reach their business objectives and long term goals. That’s what businesses are looking for today, not just noise but translatable results. That is why growth and performance marketers are in high demand,” he said.
For Salvador, as long as agencies continue to offer value, they will stay competitive and acquire new businesses.
“We live in a country where things are always challenging, life in itself is challenging. It has always been and will forever be challenging. The question is are you up to the challenge. Value, like a shark, will stand you out in a crowded ocean. In a nutshell it simply means to offer value. We don’t focus on profit, we focus on value, the by-product of offering value is monetary rewards, recognition and the rest will follow. The same way valuable staff are never at risk of getting fired or getting a new job, a valuable agency is sure to get new business,” he added.
RECOMMENDED ARTICLES
Comment
No comments found.