It is pretty common in public relations agencies to see top brass taking time out to set up meetings with ‘important’ clients:
a. Internally to check the ‘health’ of the account, and
b. Externally to fortify relationship and may be raise the bar with some ‘strategic ideas.’
It is also very common to see absolutely no action against any of the points discussed in such meetings – both internally and externally. More importantly, some of the standard ‘strategic ideas,’ shared globally with similar clients get ridiculed at a local level with the servicing team bearing the brunt of the client’s attack. While most agencies cling on to ‘important clients,’ it is important for the team to understand that retaining the right client over time would have a positive impact on the profitability and hence the retention strategy to be adopted should be different. This implies an understanding of ‘Customer Lifetime Value (CLV).’
The exercise including the visit of ‘top brass’ is usually undertaken in the name of CLV’ and often goes horribly wrong with the leaders’ tactical and disconnected approach. Instead of targeting such clients for meetings, can’t the top brass who understand each customers CLV assign a team to ensure consistency in delivery of value-added services? At a time when customers focus on the approach of the ‘servicing team’ in solving specific challenges (not the brand and its reputation), it is disheartening when the team (top brass) attempts to hard sell the brand and its methodologies. The differentiator would be in increasingly empowering the servicing team to make decisions that would raise the bar for excellence. Most agencies don’t understand CLV and be it a global account or a regional one that tries to squeeze the most out of the team, the servicing team is the same, attempting to deliver the same. The outcome is simple – dissatisfaction – for clients and the team who service them.
Sans any understanding of CLV, most of the agencies don’t even bother about the larger marketing objective but force fit communication strategies to address an individual’s (client) prerogative. The result is obviously short-term gains. A clear understanding of CLV would imply prioritising communication initiatives even if it means deviating from the allocated budget a wee bit.
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