Why Agencies Fall Short of Expectations
Marketing and advertising agencies have been around ever since one bold industrialist said, “Can’t someone else do it?” and another, even bolder industrialist said, “Sure, I’ll give it a shot.” In the 150+ years since, the function has largely been the same: agencies promise exceptional results, then try their best to meet client expectations. However, things don’t always go as planned.
In this post, we take a look at some of the common reasons agencies fall short of expectations and explore how businesses can make better-informed decisions when choosing an agency partner.
Siloed Expertise
Some agencies are really good at one thing, and they do that one thing so well that they don’t really focus on anything else. While this can often be presented as a strength (who would argue against focus) this can lead to one of two problems for growing companies. Either you partner with a handful of different agencies all working on their own niche field of expertise, separated from every other part of your business, or you go with a jack of all trades agency that may be just “okay” at everything.
In both cases your company is at risk of running generic campaigns that don’t deliver, or that aren’t informed or aligned holistically across all of your business’ unique needs.
The most common way to combat this problem is to build your own in-house team of experts (time consuming, risky, and expensive), or find an agency partner equipped with access to world-class talent across all areas of the funnel.
Overpromise, under deliver
It’s human nature to be eager to please, especially when your income and profits depend on it. Some agencies, in their drive to land a contract, will promise the world to a prospective client and plan on ‘figuring it out later’. Nothing is out of scope in the pitch phase. The only problem is when it’s time to get down to business. Inexperienced teams are often stretched too thin and in over their heads, and the deliverables, outcomes, and results leave much to be desired.
By working with an agency to set a clearly defined scope of work, complete with timelines, costs, and agreed upon deliverables, your business can protect itself from an agency that’s potentially punching above its weight.
Stuck in their ways
Agencies that fail to keep up with evolving market trends and solutions will have a hard time crafting effective marketing strategies. Nobody wants to sink their marketing dollars into an agency that suggests you “just cross-post your Instagram stories on TikTok!”
There’ss too much competition in the marketplace to partner with agencies that rely on tired, cookie-cutter marketing campaigns. Bespoke, comprehensive solutions that are catered to a business’ unique needs should be the norm, not the exception. This is the same expectation companies have of their internal teams, and it should be no different when engaging with an agency.
Growth-seeking companies need to partner with agencies that are current on marketing strategies, are always testing and open to new approaches, and have instant access to experts as new opportunities present themselves. An agency with flexibility and the ability to stay ahead of the curve are surefire ways to avoid disappointment when it’s time to look at results.
Are we even on the same team?
A good agency partner puts themselves in their clients’ shoes. Their goals are your goals. Their budgets are your budgets. Share the wins, and the losses. When an agency is more focused on driving up billable hours rather than conversions, that leads to an imbalance in motivation and incentives.
When an agency is open and transparent with their clients with their reporting and results, everyone wins. A lack of transparency can make it difficult for clients to assess the success of their campaigns and that uncertainty leads to an erosion of trust between client and agency.
Not every agency suffers from these shortfalls, but working with one that does will cause undue stress and frustration for any company that is seeking reliable, trustworthy expertise for their business’ needs. By putting in the work spending the time to find an agency that understands and excels at every part of your business, puts your success first, and is constantly pushing the envelope and innovating, you’ll save yourself equal parts frustration and money as your company starts to soar.
Your Company is Probably Underinvesting in Lifecycle Marketing
- Lifecycle marketing is essential for growth but often underinvested in.
- Neglecting lifecycle marketing can lead to lower customer acquisition, decreased engagement, increased churn rates, and missed upsell and cross-sell chances.
- To optimize lifecycle marketing, businesses should map the full customer journey, thoughtfully segment audiences, personalize marketing efforts based on actions/inaction, and continuously refine and optimize campaigns while informing the broader business of your learnings.
- Emphasizing lifecycle marketing enhances customer relationships, boosts brand loyalty, and sets a business up for long-term success through additional revenue and data.
Lifecycle marketing is a critical part of any successful growth strategy, yet many companies either underinvest in it, or neglect it completely. By failing to reach your target at different stages of their journey, you risk missing out on opportunities to acquire, engage, and retain your customers. Let’s explore the importance of lifecycle marketing and the potential negative consequences of underinvesting in a critical aspect of your company’s marketing arsenal.
Lifecycle Marketing: What is it?
Lifecycle marketing is the practice of targeting your customers with tailored messages and offers based on where they are in the customer journey. This can be through email, SMS messages, and even in-app push notifications. Every customer has different needs, considerations, and behaviors as they make their way through the sales funnel and by measuring and optimizing to these needs, businesses can create a more personalized experience, ultimately driving growth and long-term success.
What’s the worst that could happen?
Companies that fail to invest in their lifecycle efforts run the risk of leaving significant amounts of untapped revenue scattered across their marketing pipeline.
- Lower Customer Acquisition Rates – Businesses without effective lifecycle programs are leaving massive amounts of revenue on the table. People need time to make decisions and effective lifecycle programs help guide users down the sales path.
- Decreased Customer Engagement – A one-size-fits-all marketing approach likely won’t resonate with customers at different stages of the funnel, leading to lower engagement and reduced loyalty. Effective lifecycle programs meet customers where they’re from all points between first touch and first sale.
- Higher Churn Rates – Neglecting to nurture existing customers creates a host of potential risks for your business and client relationships.. Eventually, they’ll start looking elsewhere, and effective lifecycle campaigns paired with predictive analytics helps you stay ahead of churn.
- Missing Out on Upselling and Cross-Selling – Failing to capitalize on key upsell and cross-sell opportunities leads to lost revenue and missed growth potential. In many industries, lifecycle is capable of driving 20%+ of your total revenue.
Getting the most from your lifecycle strategy
To optimize your lifecycle efforts, there are a few simple steps you can take that will put you on the path towards knowing and engaging with your customers.
- Map the complete Customer Journey – Give yourself a clear understanding of the different stages of your customers’ journey and the unique needs, challenges, and preferences associated with each stage.
- Segment Your Audience – Not all customers are exactly the same. Divide your customer base into clearly defined segments based on their behaviors, preferences, and lifecycle stages to create targeted marketing efforts.
- Personalize Your Marketing – You’ve got customer data, so use it! Leverage your data and insights to create personalized marketing messages and offers that drive engagement and resonate with your audience.
- Always Be Optimizing – Can’t stop, won’t stop. Regularly analyze the performance of your lifecycle campaigns and adjust your approach based on any new learnings. Try something new, if it works, great! If not, that’s okay, you just learned something new.
You’re leaving money on the table when you underinvest in your lifecycle marketing. Even worse, you’re hindering your growth potential. When you recognize the importance of staying engaged with your customers at every step of their journey, you improve customer relationships, boost loyalty to your brand, and set yourself up for long-term success.