Should an Incumbent Participate In A Review?

by jneer 9. September 2009 10:09
Should a Client have their Incumbent Agency Participate?

Can An Incumbent Agency Ever Win?

Let’s take it from the client’s perspective first.

When we begin a review for a client and ask the question about whether their current agency will be participating, we often hear “Let’s let them participate.  We’ve worked with them for so long.  Its only fair.”

But the fact is the client is not doing the agency any favors by having it participate unless it has a real chance of winning.  It will be spending a great deal of time and money on the pitch.  Time and money that will take away from what it is working on for the client during the review process.  What is really fair is only including the agency if it has a fair shot.

Some questions we ask our clients when they are making these decisions:

·    Analyze the reason for the review.  If it is being done because of poor performance by the agency, can it ever recover?  
·    What is its reputation by others at the company?  Are their factions that don’t want to work with this agency anymore?
·    Will a shift in personnel make a difference?
·    Do they have the capabilities that you have laid out in the Selection Criteria for the new agency partner?
·    Bottom line – do they have a shot in hell of winning?


What about from the agency’s perspective?  Should it defend?

With the recent press that Crispin will not defend its AOR status for VW, comes the question every agency has to grapple with.  Should I defend one of my accounts that are now going into review?

There are some agencies that have a policy on this.  Crispin being one and The Richards Group another.  They will not pitch to retain a current client.  Then there are some agencies that will defend no matter what.   But most agencies make the decision on a case-by-case basis.  To me that is the way it should be.  But how do you decide?  Here are some questions we recommend the agency ask itself?

·    What is the reason for the review?  Do you really know or are you just being given an excuse?
·    What kind of relationship does the agency have with all levels at the client?  Be honest?
·    Is the client changing/expanding what they need in an agency?  
·    Does your agency meet their Selection Criteria?  Again, be honest?
·    Is the same kind of growth potential there for your agency?  Are you making a profit and can you continue to?
·    Do you have more value to add?  Have you gotten into a rut and really not been proactive and moving their business forward.

Decisions like this require real soul-searching and honesty for both the client and agency.

The statistics tell the real story.  Only about 10% of incumbents that participate ever retain the business.  
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