Report tells PR to spend more on client retention

PR agencies should invest significantly more in client retention and pay greater attention to the way they evaluate their own services, according to a report published this week.

PR agencies should invest significantly more in client retention

and pay greater attention to the way they evaluate their own services,

according to a report published this week.



Relationship Audits and Management, which audits client-servicing

companies, carried out over 2,000 client audits. The results should act

as a warning to PR bosses.



The survey found that the majority of appraisals initiated by agencies

involve sending the ’same questionnaire to each client once a year’.

This, despite the fact that 75 per cent of clients who change agencies

cite ’poor service’.



The report says that although large agencies spend up to five per cent

of their income on new business development, less than one per cent of

agencies even have a specific client retention budget, beyond standard

travel and entertainment allocations.



’Agencies invest inordinate amounts in chasing the ’new’ when it is

significantly more profitable to build on the existing,’ wrote authors

Carey Evans and Simon Rhind-Tutt.



More than 90 per cent of clients surveyed said that ’ongoing

relationship monitoring or tracking was negligible despite being

desirable’. Many clients (66 per cent) believe that agencies incentivise

new business wins but just 17 per cent of clients feel the account team

is then rewarded for good management.



Leader, p10.



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