In creative agencies, financial metrics like revenue, profit margins, and billable hours often dominate boardroom discussions. But what if the secret to long-term growth
and stability lay elsewhere?
For agencies looking to build sustainable success, two often-overlooked KPIs—Client Satisfaction and Employee Engagement—are far more predictive of
future performance than short-term financial gains. Ignoring them isn’t just an oversight; it’s a risk that could cost your agency dearly.
1. The hidden cost of ignoring these KPIs
Unhappy employees = unhappy clients = business decline
A disengaged team doesn’t just impact morale—it affects your bottom line. Studies show that disengaged employees:
- Make 60% more errors than engaged ones (Gallup)
- Are 87% more likely to leave their company, leading to higher recruitment and training costs
The result? Clients experience inconsistent service, deadlines slip, and creative quality suffers. High employee turnover also disrupts client relationships, leading to a vicious cycle of dissatisfaction and attrition.
One way agencies can track and improve employee engagement is by taking part in the bi-annual Alliance People Pulse, a measure that enables Alliance members and staff working at independent agencies to gauge engagement levels. It provides valuable data insights—powered by Question & Retain—helping agencies understand where they stand and how to improve workplace satisfaction.
Unhappy clients often don’t complain — they leave
Many agencies assume they’ll hear from dissatisfied clients before they walk away. The reality?
- 91% of unhappy clients never complain—they just leave (Forrester Research)
- Acquiring a new client costs 5-25x more than retaining an existing one (Harvard Business Review)
- Agencies that proactively track and act on client satisfaction data see stronger long-term growth (Question & Retain research)
If you’re only looking at revenue and profitability, you’re watching lagging indicators—meaning you see the problem only when it’s too late to fix it.
2. Metrics that matter: how to measure success
Many agencies struggle to measure employee engagement and client satisfaction beyond anecdotal feedback. But there are simple, proven ways to track these leading indicators:
Client satisfaction metrics:
- Net Promoter Score (NPS): “Would you recommend us?” (key indicator of loyalty)
- Client Satisfaction Score (CSAT): Measures happiness with a project/service
- Client Retention Rate: The ultimate proof of satisfaction—if clients aren’t staying, something is wrong
Employee engagement metrics:
- Employee Net Promoter Score (eNPS): “Would you recommend working here?”
- Turnover rate & retention: High attrition is a red flag for cultural or leadership issues
- Productivity & absenteeism: Low engagement leads to lower efficiency and higher burnout
- Alliance People Pulse: A dedicated measure for agency employees to assess engagement and benchmark against industry standards
3. Connecting people metrics to financial growth
Many finance and commercial leaders are sceptical of people/relationship-based metrics. But data shows that agencies investing in client and employee satisfaction outperform their competitors:
- Agencies with highly engaged employees are 21% more profitable (Gallup)
- Companies that focus on customer experience grow 4-8% faster than competitors (Bain & Company)
- Firms with happy employees see 147% higher earnings per share than those without (Forbes)
The key takeaway: client satisfaction and employee engagement aren’t just ‘nice to have’—they are leading indicators of revenue growth.
4. A simple call-to-action for agencies
Measuring these KPIs doesn’t require complex overhauls. Agencies that want to future-proof their business should:
- Choose one new KPI (NPS for clients, eNPS for employees, or the Alliance People Pulse) and commit to measuring it quarterly
- Create a feedback loop – don’t just collect data, act on it
- Tie incentives to these KPIs – reward teams for improving client satisfaction and engagement, not just financial performance
Final thought: shift from chasing revenue to building a resilient business
Short-term financial KPIs may tell you where your agency is today, but they won’t predict where it’s headed. By focusing on Client Satisfaction and Employee Engagement, agencies build a foundation for sustainable growth, stronger client relationships, and a thriving team.
Ignore these KPIs at your peril—because the agencies that measure and act on them will be the ones that win in the long run.