Imagine this: you’ve just landed a big client, and everything seems to be going smoothly. But after a few months, you notice they’re not as engaged as they used to be. The feedback isn’t as positive, and suddenly, you realise your client might be slipping away. Sound familiar? This scenario is all too common in the world of PR agencies, and it’s a stark reminder of why client satisfaction is more than just a buzzword—it’s a lifeline.
Recent research conducted by Question & Retain among over 1,000 PR agencies in the UK during April-May 2024 reveals a compelling insight: while we all agree that client satisfaction is crucial, only a fraction of agencies treat it with the urgency it deserves. The agencies that do, however, find themselves enjoying better client retention, higher lifetime value, and overall improved financial performance. So, what’s their secret?
The Fine Art of Listening
One of the most powerful tools in any agency’s arsenal is the ability to listen—truly listen. It sounds simple, but effective listening is more challenging than it seems. Often, we listen to respond rather than to understand. We filter feedback through our biases and jump to solutions without fully grasping the problem. This is where the wisdom of Tibetan philosophy comes in handy: “right thought, right word, right action.” It’s about flipping our usual approach and ensuring that we think before we speak and act.
To listen better means being prepared to hear things you might not want to. It requires an open mind and a willingness to accept all feedback, even the uncomfortable kind. Embracing this mindset can transform pain points into opportunities for growth, making it more profitable than simply basking in praise.
Understanding the Landscape
The Q&R study highlights that 87% of PR agencies view client satisfaction as a crucial part of their strategic decision-making. These agencies understand that without happy clients, it’s nearly impossible to continue delivering great work and growing their business. Conversely, 13% find it important but not a primary focus—missing out on the full potential of client feedback.
One respondent summed it up perfectly:
“It’s the foundation of the business. If we don’t have happy clients, it’s very difficult to continue to do great work and grow our business and people.”
The Power of Formal Processes
So, how do these successful agencies manage to keep their clients satisfied? The majority (64%) have implemented structured processes to measure and manage client feedback. They use frameworks like AMEC or customised internal processes to gather and act on client input. These agencies emphasise face-to-face interactions and regular check-ins, ensuring they stay aligned with their clients’ needs.
However, 21% of agencies still rely on informal methods, like casual client lunches. While these can provide valuable insights, they perhaps lack the consistency and rigour needed for continuous improvement. Encouragingly, 14% of those without formal processes are planning to implement them, recognising their importance.
Measuring ROI: A Critical Step
Understanding and demonstrating the ROI of client satisfaction efforts is crucial. According to the research, 58% of agencies measure ROI through changes in retention rates, lifetime value of clients, and overall financial performance. This method provides a clear link between client satisfaction and the agency’s bottom line.
Yet, 17% do not currently measure the ROI of their client satisfaction efforts, missing a vital opportunity to showcase the tangible benefits of their work. Some agencies use industry benchmark data (such as Q&R YTD aggregates), while others combine multiple methods to get a comprehensive view.
One agency shared:
“We use client satisfaction feedback to address any client issues, discuss them, and make sure they are resolved. Then, we use particularly positive clients to upsell opportunities and dig deeper into wider client needs.”
Driving Continuous Improvement
Feedback isn’t just about fixing what’s broken; it’s about continuously evolving. The study found that 91% of agencies use client feedback to drive continuous improvement. Whether it’s through regular training, strategic business planning, or frequent check-ins, these agencies are committed to growth based on their clients’ needs.
One agency described their approach:
“We have fortnightly client satisfaction and growth check-ins with team leads where we assess client satisfaction and look at growth opportunities, mapping back to a plan for each client.”
Conclusion: Why Aren’t You Measuring Client Satisfaction?
Measuring client satisfaction is not just another task on the to-do list; it’s a strategic imperative that can drive significant improvements in client retention, financial performance, and overall business growth. The agencies that prioritise client satisfaction see the benefits in their decision-making and long-term success.
So, don’t ask how, why, where, or when to do a client satisfaction survey; the only question to ask is, “Why aren’t you doing it?”
If you would like to see the full survey results please DM @Annabel Dunstan