3 Ways to Recession-Proof your Agency and Client Relationship

As of January 2023, we are officially in a recession! Some might argue that it already began in recent years, but the timing of exactly when it started is less important than accepting the fact that it is here. We need to recognise that for the foreseeable future, things will be a bit different. This may be an uncomfortable truth for many; however, uncertain times can bring about opportunities if we look at them through the right lens.  

Recessions aren’t new, they come and go, however how marketers and agency partners respond historically tend to follow two schools of thought: Belt tightening or deeper investment in self.

Belt Tightening / Crisis Management

Many companies immediately look inward to find, streamline, or completely remove inefficiencies and / or redundancies, with the goal of cutting costs wherever possible to remain affordable amidst austerity measures on both side.  

Investing in Self / New Capabilities

Others, however, take a different stance, re-evaluation, and re-invention. Desperate times may call for desperate measures, but a recession and how to react is a matter of poise and perspective. In a new economic client where clients are looking to maximise on value while ensuring costs remain low, an agency’s ability to proactively identify areas of their business where they can streamline cost structure(s), or be more flexible to fit the new needs on the client side, will determine whether that agency partner will continue to be one.  

That said, it’s easy to think lowering operating costs will solve the issue. It won’t. Marketers still need to accomplish the same goals and objectives during economic downturn (although in some cases goals are tempered). Agencies need to be able to STILL deliver the value they were contracted for, while 'doing more with less'. Which I’ve historically found to be a somewhat abstract concept. How am I and our agency team supposed to do more with less (resources, time, budget)?

1. Don’t’ sweat the small stuff!

When making the shift to 'do more with less', the ‘more’ should focus on ‘big ticket items’ that drive maximum impact. We no longer have the luxury for small wins. These are still great, but need to take a back seat to newer, more important, and more impactful initiatives and results.  

At M&C Saatchi One-to-One, that is our raison d’etre; ‘Impact’! 'Impactful Human Connections' to be more specific. We believe that for both our client partners and their respective end-consumers it’s crucial that everything we do is impactful and recognises the human behind the effort as just that ‘a human being’, not just an audience, stat, or KPI to perform against.  

In the case of our client partners, for myself and my team, we view them as more than just Omni-channel directors, CRM managers, and directors of brands and marketing. They are human beings who just like you and I aren’t quite sure what this recession will bring, for their jobs, their families, or their livelihoods. A vital truth we can never lose sight of.  This is how we ‘connect’ with them in meaningful ways, through common ground, shared goals, and yes, even fears!

And finally, our end-consumers who also are going through the same recession, and have less money to spare, or appetite for cookie-cutter, half-assed, one-size-fits-all marketing efforts, that are more brand-serving than consumer. Initiatives, campaigns, programs, and events, now more than ever, must positively impact their and their families’ lives, while providing a product or service that connects with them in meaningful ways during these unique times.  

2. Get comfortable with the uncertain!   

Priorities will (continue to) shift!  As clients adjust to meet newly set goals, structures, austerity measures, and re-organisations, these will not only be common, but in some cases frequent, throughout the year with increased uncertainty. That said, what MUST remain constant is a having an agency partner that understands this, and is willing to adapt (quickly) alongside their client partners to ensure newly identified priorities are quickly recognised, aligned to, and executed against, seamlessly.

I spoke with Johnny Walker, global director at M&C Saatchi Fluency, our data science partner within the group to understand how this year has affected their partners and relationships. He noted, “We know brands and consumers are facing difficult macro-economic challenges as we move into 2023. And while this is incredibly daunting for our clients, there is a source of optimism for us – as the tools we have to weather the storm are better than ever before.

Our Brand Desire leverages highly sophisticated AI and machine learning to make sense of millions of datapoints, enabling us to get under the skin of brand desirability and performance. This equips us now better than ever before to truly understand how to optimise performance, drive demand, and withstand the macro-economic challenges our clients are facing.”

3. Don’t’ be precious! Remain flexible & resilient!

As clients adjust, agency partners must quickly adapt and align or become obsolete. Being locked into specific structures, ways-of-working, or forms of partnership, will quickly erode patience with clients looking to adapt to their own new realities. Now, more than ever, they will need a partner to walk with them through that journey, hand-in-hand.  

Jen Zwilling, senior consultant at M&C Saatchi CLEAR notes, “We’re continuing to see reorganisations and downsizing create disruption on teams, leading to quick shifts in priorities. All of this adds a new layer of uncertainty which aligns exactly with what we’re positioned to help clients navigate: taking the omnipresent complexities and uncertainties within organisational structures and finding clarity in the chaos.

Being a true client partner, even when not actively working on a project, means always being willing to help make clients’ lives easier – whether that’s aiding the transfer of knowledge within their shifting teams or simply being a sounding board.”

Reinforcing the fact that during turbulent times the need for a resilient and solutions-focused agency partner becomes even more imperative.

Take the time to assess and re-evaluate how you partner with your clients. This includes automating previously manual processes, revisiting your scope structure to ensure it allows for the flexibility necessary to be the best partner through turbulent times, and do whatever is in your power to make your clients day-to-day easier. Remove meetings from the schedule when possible, give time and space back in their day to content with the new challenges and uncertainty recessions brings. All whilst still supporting them and being there in whatever manner helps them most, without compromising team morale, or the quality of your agency’s product.

In speaking with Ian Magnani, CRO for MCD Partners, he notes, “During our 24-year history, we’ve been through a few economic downturns. This time around we’re expecting a relatively soft landing, but we are taking steps to support our clients and minimize any impact to our business. Our focus has been increasing our own efficiencies so we can provide the best level of service and value to our clients. These efficiencies focus primarily on upgrading our production management, media, design, and development capabilities, while deepening our relationships with offshore partners, and taking a more aggressive approach to pricing with business development. We’re also a bit more cautious about hiring, however, have a few open positions we plan on filling”.  

While many may take the belt-tightening approach and seek to cut costs, others will instead seek to increase investment in key areas of their business and look for new opportunities where they can add value.  All Said, dysfunction and chaos can create opportunity, and savvy agencies (and clients) can ride the tide of economic fluctuations and come out on the other side, stronger, and more efficient than ever before, with the right perspective and proactive approach. 

Ensure that while you continue to service your clients in more efficient ways, also make sure that your relationships remain strong and you’re seen as a trusted – and flexible – confidant, able to shift priorities or work streams in nimble fashion, as needed. Clients should always experience both a return on investment, and time, in partnering with you.  Meaning they should not only reap the benefits of the costs they’re investing in your agency scope, but also enjoy the partnership (i.e. strong relationships and ensuring you’re a consummate client partner, host, and yes, even friend). I’ve built the strongest client relationships throughout my career by actually becoming friends with my clients.  

Truly knowing your clients, what keeps them up at night, what they’re looking to enable, and where they’d like to leave their mark, is critical to being their right-hand, and guiding your team to helping them realise their goals, whilst positioning them for further success and mobility within their organisation.  

This in turn positions you and the agency for new opportunities, and earns you seats at new tables. There’s also the added benefit that once that client has decided to move to a new organisation, they oftentimes will circle back with valued agency partners to consult and collaborate on new ventures. 

Net Net, be there for them through the good and the bad, and that investment of your time and energy will reap the benefits both in the present and future.