Common Pain Points of Hiring An Agency

Executive summary

• Unresolved pain points between brands and their marketing agencies can lead to dissatisfaction with results and a breakdown in the relationship.
• Common pain points between agencies and brands often revolve around fundamental pillars in the relationship more than the work itself.
• Some of the most common pain points include a lack of clear objectives, poor communication, scope creep, and budget constraints.
• To overcome these pain points, it’s important for brands and agencies to set clear objectives and maintain consistent communication throughout the relationship.

Pain points of hiring an agency

A partnership between a brand and a marketing agency can offer tremendous potential for brand growth. However, the harsh reality is that many brands are unhappy with these partnerships. A 2023 study found that a staggering 55% of brands planned to leave their primary marketing agency within six months.

With such a high number of dissatisfied brands, there is a cause for alarm regarding the nature of these relationships. Surprisingly though, many of the pain points that brands express about working with agencies are not actually related to the work produced, but more connected to the fundamental pillars that hold up the relationship.

For example, relationships often break down because of mismatched expectations or disagreements over scope and budget rather than campaign results. In fact, many brands are happy with the strategies their agencies recommend but not so happy with the value.

Understanding these pain points will allow both sides to overcome them and enjoy a smoother agency collaboration. To maintain healthy partnerships, it’s important that both sides establish clear expectations up front and maintain consistent communication throughout the relationship to ensure that both sides remain aligned on value and output.

The most common pain points explained

Many relationships between brands and agencies break down because of lack of clarity or disagreements around the terms of the relationship. Understanding the following pain points will equip brands and agencies with the tools to foster healthy partnerships.

Lack of clear objectives

A lack of clear objectives can lead to misalignment of expectations. For example, if an agency is unclear on whether a brand is looking to increase website traffic or drive new sales, it could focus its energy in the wrong direction, producing a campaign or initiative that leaves the brand completely dissatisfied. To avoid these hiccups, it’s important that clear and specific objectives are discussed from the start.

When starting work with an agency, it’s crucial that brands have clear marketing objectives ready to bring to the table. To foster a successful relationship, teams should work together to develop their goals and key performance indicators (KPIs) before they even reach out to an agency. This cohesion is helpful in minimizing any confusion about expectations when they finally sit down with the right agency.

From there, the key is ensuring clarity on these objectives between both sides. Brands should take the following steps to ensure alignment with their goals:

• Have clear goals and objectives ready to bring to the table
• Clearly articulate these goals and expectations
• Be as specific as possible in your goals
• Establish key performance indicators (KPIs)
• Provide relevant background information/insights
• Communicate any constraints or unique preferences
• Set a timeline with specific deadlines and milestones
• Encourage collaboration and feedback throughout the process

Poor communication

Poor communication can break down any relationship, and that between agencies and brands is no different. Regular communication between brands and agencies can be difficult, especially when the standard is virtual communication.

Agencies and brands must be intentional about staying in touch and remaining aligned on partnership objectives. Regular communication ensures common ground on target goals, outstanding tasks, ongoing projects, and upcoming deadlines.

Ineffective communication could cause hang-ups on both ends that could strain the relationship. For example, a brand may not provide timely feedback on work that an agency delivers, resulting in the agency viewing the brand as uncooperative. Meanwhile, if the agency doesn’t receive and implement timely feedback, the brand may view the work as lower quality.

Altogether, it’s crucial that both sides establish consistent check-ins to stay aligned on objectives, upcoming tasks, and more. Some ways to do this include:

• Sending weekly recaps of initiatives and accomplishments through email
• Maintaining bi-weekly status calls so both sides can communicate their current expectations and needs
• Agreeing on preferred communication channels, like Google Meet, Slack, or email
• Encouraging open dialogue and transparency around both successes and setbacks

Scope creep

When a brand hires an agency, they normally do so with a specific intention in mind. For example, this could include supporting with website content to boost organic traffic or managing paid ad campaigns.

However, as the relationship carries on, it can be common for brands to ask for support in areas outside of the initial scope of the arrangement. For example, let’s say an agency is contracted to focus only on SEO, but they end up helping with some website development tasks here and there. Often, these tasks slowly add up until they go well beyond the parameters of the initial agreement.

As the scope creeps, expectations change, making it harder for the agency to keep up with the initial requests—altogether, this can raise uncertainty around budget, goals, and responsibilities. If an agency begins to juggle multiple tasks, it can take effort away from the initial pillars of the project and affect the quality of work the brand receives, hindering their satisfaction.

To avoid scope creep, agencies and brands can take the following steps in their relationship:

• Define clear project objectives at the beginning of the relationship
• Create a detailed project scope that both sides agree on
• Set realistic timelines and milestones
• Communicate effectively and regularly
• Managing client expectations for what can be accomplished
• Establishing firm boundaries on capacity while remaining flexible when possible

Budget constraints

Budget constraints are a frequent source of disagreement for brands and agencies—the budget is fundamental to what an agency can accomplish, but brands want the best possible value. Both parties are responsible for ensuring that budget expectations are clear so that there is no confusion or misunderstanding around the extent of the working relationship and what can be accomplished throughout the partnership.

Brands should clearly communicate their budget limitations while agencies should clearly communicate what they can accomplish within those limitations, as well as what budget they need to accomplish certain tasks.

Finding a compromise between these two areas is crucial for maintaining a healthy relationship. If agencies can’t be transparent about their limitations and capabilities with a budget, then brands may have mismatched expectations and develop concerns over the quality of the work produced.

Some agencies find that brands are hesitant to share their budget for the sake of maintaining privacy, minimizing unwanted sales pressure, and avoiding being overcharged. However, this transparency is important for giving brands better context around their options for bringing results.

Some ways for agencies and brands to circumvent budget constraints in their relationship include:

• Focusing on core services
• Negotiating scope in advance to avoid scope creep
• Exploring alternative solutions
• Establishing clear metrics and KPIs
• Actively monitoring the relationship budget
• Evaluating return on investment
• Providing regular reporting around budget and resource allocation and results

Avoid the common pitfalls of working with an agency

Working with an agency can offer a variety of benefits, but it’s important to avoid the common pitfalls so that the relationship is sustainable long-term. An improper foundation can lead to a breakdown in the relationship, which is why brands and agencies need to establish clear expectations and maintain regular communication.

At PETERMAYER, our values are geared toward fostering healthy relationships with our clients and bringing results that drive traffic and engagement. Using data and analytics-based methods, we’ll unleash the inherent joy that exists in your brand and use it to build lasting relationships with your target audience.

Learn more about our approach to understand the value we provide our clients. If you’re looking for a new agency, contact us today to discuss what you’re looking for in an agency partnership.

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