Relationship Audits & Management
 

Agencies failing their clients, says survey

New media agencies are failing to meet even the most basic standards of customer service, according to a survey published by Relationship Audits & Management.

RAM interviewed more than 1,100 managers whose companies employ digital agencies in the UK, Europe and the US.

Of these, 91% told RAM they felt that their agencies put more effort into gaining new business from new clients than developing their existing relationships.

An overwhelming majority of clients interviewed - 89% - had failed to establish a formal annual appraisal process, as they would with other creative suppliers. Almost all of those respondents who had moved their business, or terminated their contract with an agency, had done so because of poor service delivery.

"The agencies are adopting 'churn-and-burn' strategies in relation to clients," said RAM's MD Simon Rhind-Tutt. "The ones that survive will be those that strive to build long-term relationships with clients."

Rhind-Tutt also believes that most agencies are in a position to choose their clients and don't care about client retention.

The managers RAM spoke to are also dissatisfied with the high rates of staff turnover within agencies. "One client told us that they had gone through three account teams on a single project," said Rhind-Tutt.

NEW MEDIA AGE 03/08/2000