Up to the Light - What clients think 2014

© UP TO THE L IGHT

WHAT CLIENTS THINK 2014

WHAT CLIENTS THINK 2014

IN ASSOCIATION WITH

WHAT CLIENTS THINK 2014A report based on 400 client interviews conducted on behalf of design agencies.

© UP TO THE L IGHT2| WHAT CL IENTS THINK 2014

This report is based on 400 interviews that Up to the Light conducted with clients during the course of 2013. All the interviews were commissioned by design agencies. Names of the individual agencies and clients involved are confidential. However, we are able to share some interesting statistics when looking across all 400 interviews. They reveal a fascinating snapshot of the client viewpoint and provide some important pointers for how agencies can strengthen their client relationships.

1. INTRODUCTION


INTRODUCTION

All the agencies commissioned Up to the Light to conduct a Client Survey with their key clients. The purpose was to monitor the health of their most important client/agency relationships.

Specifically:

- Understand current perceptions of their agency’s strengths and weaknesses.

- Understand which boxes clients are putting them in, whether fairly or unfairly.

- Provide a better understanding of client needs and concerns.

- Identify client development opportunities.

- Highlight client service measures that can improve the relationship.

- Spot any problems early so that they can be dealt with proactively.

- Understand how they are compared to competitor agencies.

- Provide an assessment of client perceptions across areas such as creativity, value for money, ability to add value, proactivity, effective listening and commercial awareness.

- Understand how clients see the market more generally – trends and concerns.

The disciplines of the different agencies included:

- Retail design

- Packaging design

- Digital design

- Corporate identity

- Corporate communications

- Corporate reporting

- Print design

- Integrated or multi-disciplinary design

The design agencies range in size from under 5 employees to over 100.

1.1 About the agencies


INTRODUCTION

The 400 interviews are across a very broad range of clients – different industries, UK and international, business to business, business to consumer, not for profit.

Different areas represented include:

- Food and drink manufacturers

- Fashion retailers

- Other high street retailers

- Supermarkets

- Department stores

- Government

- Financial services

- Pharmaceuticals

- Health care

- Charities

- Arts/cultural venues

- Automotive

- Education

- Professional services firms

- Industry bodies

- Hi tech/software

- Chemicals

Job titles of people interviewed range from Chairman, Chief Executive and Board Directors of major organisations to Brand Managers. However, they all have responsibility for buying design and have a relationship with a design agency. Most interviewees are responsible for day to day dealings with the design agency, whilst some interviewees have a more senior overseeing role.

1.2 About the clients


All the interviewees were first asked by their design agency for permission to be interviewed by Up to the Light. Many clients are now used to taking part in such an exercise and are impressed that their agency is taking the trouble to conduct an independent Client Survey. Consequently, they take time to give considered answers and most interviews last 30-45 minutes. Some are considerably longer.

All 400 interviews were conducted on the telephone. The statistics in this report are based on a core question set that was used across all 400 interviews. The answers to bespoke questions used to probe issues specific to a particular client/agency relationship are not included.

2. THE INTERVIEWS

6| WHAT CL IENTS THINK 2014

THE INTERVIEWS

© UP TO THE L IGHT

OF CLIENTS CONSIDER GOOD DESIGN TO BE AN ‘exTremeLy imporTAnT’ FACTOR

IN THE SUCCESS OF THEIR BUSINESS

There is widespread client acknowledgement of the contribution that good design can bring to business success.

OF CLIENTS CONSIDERED THEIR AGENCy TO BE ‘good vALUe FOR MONEy’

A lot of agencies are seen to be delivering good value for money and there is general acceptance of the fact that successful, commercially

effective design always represents a superb return on investment. However, there is also a general downward pressure on fees

(See 2.4 Agency Costs).

94% 66%

2.1 The value of design


THE INTERVIEWS

OF CLIENTS ‘LooK forwArd To meeTingS’ WITH THEIR DESIGN AGENCy

It is easy for agencies to forget that their area of business is very different from how clients spend most of their time. Creativity and all

things visual can and should be the little bit of magic in a client’s week.

OF CLIENTS WITH A weAK or more vULnerAbLe reLATionShip WITH

THEIR AGENCy CITED CLIENT SERVICE ISSUES AS THE MAIN REASON

The biggest reason for client/agency fall outs are not the quality of creativity or thinking, but nuts and bolts client service issues. These often start as relatively minor, irritating niggles and end up as fatal

evidence that the agency is ‘not listening.’

Typical examples include: Budget management (failing to flag things up early) • Sloppiness (late for meetings, not prepared) • Haphazard (no contact reports, client has to chase, ‘last

minute’ feeling, poor communications) • Hiding problems • Too passive (not driving things, supplier not partner mentality) • Making it hard work (choosing the wrong battles, overly

defensive, taking it personally, stubborn).

74% 78%

2.2 Client service


THE INTERVIEWS

OF CLIENTS REFERRED TO AN AGENCy ‘miSTAKe’ THAT HAPPENED OVER

A yEAR AGO

Clients have long memories for the bad stuff. Once a mistake has been made or a concern about the agency becomes a client talking point,

it can become very difficult to shift.

OF CLIENTS BELIEVED THAT THEIR AGENCy UnderSTood The

mArKeT AND COMMERCIAL REALITIES ONLy ‘IN PART’

For some clients ‘in part’ is not a problem. They are saying that the agency knows as much as they need to know and cannot be expected

have the same level of understanding as a client who is immersed on a day to day basis. However, other clients believe their agency

falls short. The most common problem cited is the lack of a robust rationale to support design recommendations.

37% 61%

2.2 Client service (continued)


THE INTERVIEWS

OF CLIENTS RARELy OR never reAd THE AGENCy NEWSLETTER OR CLAIM

NOT TO RECEIVE IT

The message here is that agencies should not over rely on their agency newsletter as a means of agency/client communication.

Agency newsletters are becoming akin to wallpaper. Clients receive too many of them and are too busy to look at them or read

them in any depth.

OF CLIENTS COULD noT remember VISITING THEIR AGENCy’S WEBSITE

Typical comments are, ‘I looked at it when we first selected them’ or ‘I’ve never had a reason to look at it.’ And that’s the point. Clients are not being given reasons to visit their agency’s website. Therefore, a

major agency/client communication channel is being missed.

44% 93%

2.3 Agency communications


THE INTERVIEWS

OF CLIENTS STATED THAT THEy ARE LOOKING TO redUCe AgenCy CoSTS

Most clients felt under some pressure to contain and reduce costs. Many clients talk about benchmarking exercises or an intention

to carry one out.

OF CLIENTS BELIEVE THEIR AGENCy TO BE ‘A LITTLE

expenSive’ VERSUS OTHER AGENCIES

These clients believed their agency to be ‘a little expensive’ regardless of whether they had done any recent cost comparisons. The

judgement was often based on no more than a feeling. Perhaps this reflects an underlying nervousness about buying creative services,

a less tangible area than other purchases.

81% 69%

2.4 Agency costs


THE INTERVIEWS

OF CLIENTS BELIEVE THAT THEIR DESIGN AGENCy COULD BE more proACTive

IN ADDING VALUE AND SHARING KNOWLEDGE

One of the most frequent client comments about their agency is, ‘Show us what’s new out there’ or ‘Be our eyes and ears.’ Clients spend

their time in the fairly narrow field of their brand and market. They appreciate analogies with other markets and examples of other brands

with similar challenges. As consultants, agencies are ideally placed to do this but are not always taking advantage of the opportunities

to add value.

OF CLIENTS BELIEVE THAT THEIR DESIGN AGENCy COULD BE beTTer AT CommUniCATing IN THE GAPS

BETWEEN PROJECTS

Most clients believe that their particular organisations and areas of business are changing fast. In clients’ eyes, a 2 month gap between

projects can leave their agency out of touch with developments. In a largely project based business, many agencies do not seem to have

effective ‘keep in touch’ programmes in place.

68% 76%

2.5 Added value


THE INTERVIEWS

OF CLIENTS expeCT more FROM THEIR AGENCy AFTER THE FIRST yEAR

No matter how successful the first year of a client/agency relationship, most clients expect more in year 2. They point to an increased

knowledge of the brand/organisation and a higher level of trust. This should naturally lead to more proactive ideas and a more effective

partnership. The message is, never rest on your laurels because client expectations evolve.

OF CLIENTS BELIEVE THAT THEIR DESIGN AGENCy ‘exCeedS’ THEIR

ExPECTATIONS

If it was all down to quality of creative work, then this figure would be significantly higher. However, clients were asked to take the whole

client/agency relationship into account.

92% 8%

2.5 Added value (continued)


THE INTERVIEWS

OF CLIENTS ARE noT AwAre OF THEIR AGENCy’S FULL SKILL SET

Is there anything more annoying than being overlooked for a project that is entirely within the agency’s skill set? Clients are naturally prone to put their agencies in particular boxes. Once established these boxes can be extremely difficult to break out of. Continued client education

about the agency’s capabilities is a must.

OF CLIENTS WOULD reCommend Their AgenCy TO A COLLEAGUE/FRIEND

NOT ‘UNRESERVEDLy’ BUT ‘WITH CAVEATS’

In other words, they are saying, ‘yes, they are good but watch out for…’ Gaining real client commitment, over and above mere client

satisfaction, is hard won. Never take client loyalty and commitment for granted.

63% 73%

2.6 Client development


THE INTERVIEWS

OF CLIENTS WERE UNABLE TO nAme A direCT CompeTiTor OF THEIR

INCUMBENT DESIGN AGENCy

Generally speaking, clients’ knowledge of the design industry is poor, reflecting the ‘cottage industry’ nature of the market with so many small agencies, largely undifferentiated in clients’ eyes. Don’t forget

that even the biggest design agencies are still small businesses next to most client organisations. Clients’ understanding of different players,

their areas of specialisation, strengths and differences or who’s up and coming is often hazy or incorrect. No wonder, then, the rather

incongruous choice of agencies on many pitch lists.

OF CLIENTS BELIEVE THAT A piTCh iS good BUSINESS PRACTICE FOR HIGH

VALUE PROJECTS

It looks as if pitching is here to stay. For high value pitches, the vast majority of clients considered a pitch to be ‘best practice’ and simply

a matter of carrying out ‘due diligence.’ It would almost be a professional embarrassment not to.

N.B. Clients were questioned about pitches generally. No distinction was made between paid pitches and free pitches.

55% 96%

2.6 Client development (continued)


THE INTERVIEWS

other important expectations are:

• Understand the brand – its positioning, personality, target audience and competitors.

• Issues around delivery – on time, on budget, smooth process, good communication.

• Good chemistry – respect, trust and like the agency’s people, enthusiasm, energy.

• Value for money – competitive costs, proportionate to the task and not ‘one size fits all’.

• Good partners – proactive, pragmatic, commercially aware, committed.

OF CLIENTS LISTED ‘CreATiviTy’ AS THEIR TOP AGENCy ExPECTATION

Clients were asked to list 3-4 top expectations of their agency. About 80% of these clients talked about creativity that answers the brief and used words such as ‘appropriate’, ‘effective’ and ‘relevant.’ Only about 20% of these clients talked about creativity that pushes boundaries,

using words and phrase such as ‘pushing parameters’, ‘the wow factor’, ‘game changing’ and ‘inspirational’.

82%

2.7 Client expectations


THE INTERVIEWS

‘THEy’VE BECOME A BIT COMFORTABLE’

It’s difficult to show enthusiasm, proactivity and commitment over a

long period of time. Where long standing client/agency relationships are concerned,

it’s all too easy to be seen as a little complacent versus hungry agencies knocking

on the client’s door.

‘THEy COULD BE MORE

PROACTIVE’

Clients tend to view the subject differently depending

on their seniority. For instance, junior and middle management clients usually

see proactivity as being within the project. Flagging

up budget issues ahead of time, spotting potential

problems early or challenging the brief all fall into this

category. However, more senior clients tend to view

agency proactivity as being about the wider business. Typical examples include monitoring competitors, providing analogies with

other brands and markets or coming up with ideas that have a direct bearing on

sales and profitability.

‘I DON’T REALLy KNOW ENOUGH ABOUT THEM’

Clients are often rather hazy about their agency’s areas of expertise and relevant

experience. Not many agencies are taking time to re-present their credentials and systematically inform

clients about their full skill set. Clients are generally quick to pick up when an agency is being a bit passive in this

respect. They like to see that their agency is a buzzy,

dynamic and successful company. The message is,

up the volume.

‘THEy DON’T CHALLENGE ME

ENOUGH’

The agency is a brief taker not a consultant. This

can sometimes happen over a period of time as the workload becomes

demanding and the focus is simply on delivering work against tight timescales.

‘THEy NEED TO BE STRONGER

WITH US’

Many clients are looking for their agency to drive

things more – scheduling of meetings, managing budgets, chasing harder, taking more

responsibility.

‘I have to chase and remind them. It should be the other

way around’ is a typical comment.

2.8 AND FINALLy, THE TOP 5 CLIENT COMPLAINTS


IN ASSOCIATION WITH

Up to the Light is a specialist consultancy offering expert, objective and experienced advice for marketing services agencies and professional services firms. Our approach is to challenge ingrained assumptions and offer more effective, insight-led thinking.

If you’d like to discuss an independent Client Survey for your agency, please contact Jonathan Kirk.

Services include:Client SurveysBusiness development strategyPitching adviceBusiness differentiationTraining & workshopsBrand strategy Up to the Light Ltd.

Premier House11 Marlborough PlaceBrighton BN1 1UB

T +44 (0)1273 665475 E [email protected]

www.uptothelight.co.uk

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