Client Segmentation

Every client has a unique DNA.

A distinct characteristic, behavior, or preference that defines them. It encompasses a combination of factors—from business goals and challenges to communication styles and decision-making processes.

Understanding this DNA is crucial for agencies to tailor their strategies, ensuring they meet clients’ specific needs effectively and forge stronger, more successful relationships. It’s about recognizing the individuality of each client to provide personalized, impactful solutions.

The “Agency Edge Research Series 2023” provides a deep dive into the segmentation of clients, revealing three unique categories: Relationship Builders, Staff Prioritizers, and Savings Seekers. This blog explores the characteristics of each segment and strategies for agencies to engage effectively with each type of client.

Relationship Builders (30%)

Relationship Builders are clients who value strategic, long-term partnerships with their agencies. They see agencies as allies in their marketing journey and are keen on building consistent, evolving relationships. This segment appreciates innovation and is open to exploring new services that agencies offer.

Characteristics

Seek long-term partnerships and consistent communication.
Open to exploring innovative services and flexible in adjusting strategies.
Value the expertise and guidance provided by agencies.
Believe in the synergy of their in-house team with agency experts.

Additional Insights

Expectation Exceedance
Relationship Builders are more likely to rate their experience with their best agency highly. They especially appreciate communication and a deep understanding of their industry, customers, and business goals.
Long-term Orientation
Half of the Relationship Builders anticipate continuing their relationship with their best agency for five or more years, indicating a desire for stable, long-term partnerships.

Strategies for Agencies

Foster Open Communication
Regularly update clients on new trends and how they can benefit their strategy.
Showcase Innovation
Present new ideas and services that align with their long-term goals.
Build Trust
Share success stories and case studies that demonstrate reliability and results.
Collaborate Closely
Work closely with their team, respecting the knowledge both parties bring to the table.

Staff Prioritizers (43%)

Staff Prioritizers trust the expertise of their internal team and seek agencies that can seamlessly integrate and complement their existing efforts. They value speed, efficiency, and deep understanding from their agency partners and prefer agencies that are quick to understand their unique needs.

Characteristics

Trust more in their internal team’s expertise than external agencies.
Desire fast integration and understanding of their business by the agency.
Prefer changing agencies often to maintain a fresh perspective.
Find coordinating between in-house teams and agencies challenging.

Additional Insights

Integration Focus
Staff Prioritizers value agencies that can quickly understand and integrate with their business, placing emphasis on speed and efficiency.
Dynamic Agency Engagement
They tend to prefer changing agencies, often to maintain a fresh perspective and ensure that the agency can keep pace with their internal team.

Strategies for Agencies

Quick Integration
Demonstrate your ability to quickly understand and adapt to their business.
Personalized Approach
Take time to deeply understand their business, industry, and specific challenges.
Flexible Engagement
Offer flexible terms that accommodate their preference for frequent changes.
Simplify Collaboration
Use tools and processes that make collaboration with their in-house team seamless.

Savings Seekers (26%)

Savings Seekers are focused on optimizing their marketing budget and are constantly looking for ways to reduce costs. They are sensitive to economic conditions and prefer working with agencies that can demonstrate clear cost-saving strategies.

Characteristics

Always looking for ways to reduce marketing spend.
Sensitive to the economic conditions affecting marketing budgets.
Prefer competitive pricing from agencies.
Believe they could handle marketing in-house if necessary.

Additional Insights

Cost-effectiveness
Savings Seekers are focused on optimizing their marketing budget and look for agencies that provide clear cost-saving strategies and competitive pricing.
Economic Sensitivity
They are sensitive to economic conditions affecting marketing budgets and are vigilant about how expenditures align with their financial strategies.

Strategies for Agencies

Competitive Pricing
Clearly demonstrate the value and ROI of your services.
Transparent Communication
Be upfront about costs and how you can help optimize their budget.
Efficiency and Effectiveness
Showcase past examples where you’ve helped clients save costs without compromising quality.
Prove Necessity
Help them understand what they gain by working with an agency versus in-house efforts.

Understanding Client Expectations and Agency Performance

Agency Performance Metrics

The survey highlights areas where agencies often exceed client expectations, with communication, understanding of industry, customers, and business goals topping the list.

Tenure with Agencies

Many respondents have worked with their best agency for three years or fewer, yet there’s a significant inclination towards longer-term relationships, reflecting a balance of seeking fresh perspectives and valuing established partnerships.

Experience Ratings

A large majority of respondents describe their experience with their best agencies as very good or excellent, indicating that the agencies considered best are effectively meeting client needs.

Conclusion

The “Agency Edge Research Series 2023” provides valuable insights into the mindset of agency clients, dividing them into three distinct segments. By understanding the unique characteristics and needs of Relationship Builders, Staff Prioritizers, and Savings Seekers, agencies can tailor their approach, communication, and services to better align with each segment’s preferences.

This tailored approach not only enhances client satisfaction but also builds stronger, more effective agency-client relationships that can withstand the challenges of a dynamic marketing environment.

Serve Every Client Segment With Confidence

Whether your clients prioritize relationships, staffing, or savings, a white-label partner gives you the flexibility to deliver tailored solutions without overextending your team.

Explore the Partnership

FAQs

How Can Agencies Identify Which Segment a New Client Belongs to?

Agencies can identify client segments through initial consultations, observing client interactions, reviewing any past agency relationships, and directly asking about their priorities and business goals.

What Are Some Common Mistakes Agencies Make When Dealing With Different Client Segments?

Common mistakes include overgeneralizing within segments, not aligning services with specific segment needs, poor communication, inflexible processes, and neglecting client feedback.

How Can Agencies Balance the Needs of Different Segments When They Have a Diverse Client Portfolio?

Agencies can balance diverse needs by adopting flexible strategies, creating segment-specific teams, educating clients about service options, conducting regular internal reviews, and maintaining active feedback mechanisms.