Agency-Client Relationships Moving Forward Despite Roadblocks
PR NEWS

Even in good times, agency-client relationships can be a delicate dance. But with the economy still stalling, the push-you-pull-me inherent in such relationships can be even more problematic. To get a sense of the current state of agency-client relationships, PR NEWS and Lumin conducted an informal poll of the issues confronting companies and their PR agencies. Lumin is a new "intellectual collaborative" of five mid-sized PR agencies: Carter Ryley Thomas, Padilla Speer Beardsley, PainePR, Patrice Tanaka & Co. Inc. and Peppercom. Collectively, the firms have nearly 300 employees, 11 offices and approximately $35 million in fees.

As the survey shows, media hits, while still important, take a back seat to ROI as the most important criteria in the agency-client relationship - a reflection of the current climate in which numbers are king. Innovation is another key toward enhancing the relationship, as companies increasingly rely on agencies to come up with new and innovative ideas to drive sales. The biggest hurdle remains an inability among agencies to understand their clients' business objectives while trust and cost also weigh heavily on relationships.

Since the response rate to this particular survey was minimal we expect to revisit the issue early in 2004 with the hope of garnering a lot more responses.

How effectively do you and your agency...*
Address business objectives 100%
Communicate with each other 95%
Confront emerging issues 90%
Solve problems 95%

What is the biggest roadblock in effectively communicating with your agency?
The team members are too junior 20%
Don't understand our business objectives 30%
Not responsive 20%
Trust 20%
Senior staff in unavailable 10%

Where does trust rank among the criteria for your PR agency?
Most important 55%
Somewhat important 35%
Not very important 5%
Doesn't affect my choices 5%

How important are each of the following criteria in your relationship with your PR agency?
Return on investment 80%
Publicity results/media hits 60%
Strategic counsel 70%
Staff resources available for internal projects 45%
Innovation and creativity 65%
Cost and budget 55%
Trust in the relationship 70%
Responsiveness on the part of the agency 90%
Having a good feeling about them 75%

When your agency pitched your business, did it promise you senior staff and strategy and then replace it with junior staff after awarding the account?
Yes 20%
No 80%

In 2003, did your agency deliver enough to justify the PR budget spent?
Yes, they delivered above and beyond expectations 15%
Yes, they were right on track with expectations 70%
No, they failed to meet expectations 5%
No, they charged too much for what we got 10%

In 2003, did your PR agency provide innovative new offerings that align with business objectives?
Yes, they always bring fresh new ideas to the table 20%
Yes, but budgets prevent them from breaking out new ideas 60%
No, they only bring forward new ideas when asked 20%

How do you measure the success of your agency?
Media clips only 10%
Change in sales 5%
Corporate visibility 60%
External measurement tools 25%

Can PR innovation affect your success in the marketplace -- in terms of growth of business/sales/profits/market leadership?
Absolutely 50%
Only if it is aligned with internal business goals 35%
Yes, if it is aligned with measurement tools 15%

Which do you emphasize more with your agency -- internal communications or external communications?
Internal 0%
External 65%
Both are equally important 35%

*Among respondents answering affirmatively
Source: Lumin Collaborative

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