Yearly reviews are typical in the corporate environment. While you might dread them, they are typically positive -- either you find out that your performance exceeds expectations or you gain an understanding of where you are falling short and what you can do to improve.
But in the agency world, reviews can be a dramatic event, especially for an agency who is invited to defend a client account. It would be similar to an employee having to re-interview and compete for his job, while also spending upwards of $100,000 and waiting three months to prove he can do the work he has already been doing.
Now, sometimes a brand is required to put the account up for a procurement-driven review. But most suspect that when a brand invites its current agency to defend its account, it is doing so out of "respect." That's also why this number makes sense: According to Advertising Age, fewer than 10% of incumbent agencies are estimated to hang on to an account at the conclusion of the review process. AAR Partners has only seen one agency win an account it was defending in the past decade, and this was an instance where the client was forced to conduct the review. Yet, many agencies say "yes" when asked to the "dance."
So should you say good-bye to a profitable client when they want to see what else is out there? Or are there times when rising to the challenge makes sense?
We asked a few agency executives for their opinions on if an agency should participate in a pitch to defend an account. Here's what they had to say:
There is no algorithm for making the decision whether to defend or not defend -- circumstances behind every review are unique. However, under most circumstances, it is probably best to decline the pitch opportunity.
For example, when a new CMO is looking for fresh ideas, the lead incumbent agency is most likely doomed. Obviously, they haven’t delivered the fresh ideas to this point in time. And if a relationship is damaged, it's time to decline. Has a damaged relationship ever improved during the stress of a 10-week pitch? I don’t think so.
Under most circumstances, I vote to save our team the stress, suspense, and wasted time of the pitch. I believe we are better off negotiating a wind-down plan and incentive compensation package for a smooth transition and at the same time putting our new business planning into high gear. Nothing is forever.
- Kevin Meany | BFG
It depends on the circumstances that led to the review. Is it procurement or contractually led (e.g., a mandatory review)? Is it a result of new leadership?
In the end, it comes down to the question, 'Is it right for the agency?' To get to that answer, you need to put aside personal biases and really focus on the pros and cons. And once you go through your list, we always end the process with one final question: Given the circumstances, what are our chances if we’re at our best? Wanting to defend and retain is one thing. Being able to win under the circumstances is another.
Pitches and reviews take a toll on any agency -- physically and mentally. And at the end of the day, we need to be confident that the juice is worth the squeeze.
- Scott Foreman | Publicis Seattle
My answer is almost always 'yes.' If you choose your clients as carefully as they choose an agency and strive to achieve true partnership, you have done so because you believe in their business and want it to succeed. You also surely believe that you and your agency are great at what you do and are the best partner for that particular client. Even if things change -- business performance declines, a new CMO is brought in, whatever -- you still believe you can help create success for that client.
Not defending is to me the equivalent of giving up. Saying you don’t have any more answers or any better ideas. Admitting you can’t make it work or someone else might be better suited to help that client. And for a creative business, especially an advertising agency, that feels like the beginning of the end.
- Joe Saracino | Erwin Penland
Agency relationships are like personal relationships -- even the best of them have peaks and valleys. Every so often, an agency-client relationship will be tested, and a client will ask you to re-commit to the relationship. This test comes in the form of an invitation to re-pitch. An invitation to re-pitch is an invitation to re-prove yourself or maybe to prove yourself in a new or different way than you had previously. I think you should take advantage of that opportunity with two conditions: There must be a viable chance of your winning the business, and the exercise must be done with honesty, transparency, and intent on both sides. It can’t just be a procurement exercise. At the end of the day, though, re-pitching is part of the way our world works.
- Carl Hartman | Geometry Global North America
No, unless it is so economically vital to the agency that you have no choice but to try. It’s like your spouse asking to date around a bit -- just to see what’s out there.
The odds are not strong in your favor.
- Patrick Scullin | Ames Scullin O’Haire
It depends on the reason. If it is because a client’s policy is to review, for example, every three years, it is right to defend. If it is because the relationship doesn’t work, I would rather try to end it on a high note and bow out graciously.
- Ann Ystén | Perfect Fools
This is a tricky one because it depends on the reason. A new CMO might want to have a review, which should be seen as an opportunity for the incumbent agency to show its strength in understanding the client’s business and brand and take the work to the next level. So, sometimes yes and sometimes no. Ultimately, don’t be afraid of saying 'no.' I’ve done that. It hurts, but something better is probably around the corner.
- Eka Ruola | hasan & partners
