In a dynamic industry, small to mid-sized marketing agencies face evolving challenges—from staffing issues to client expectations and market positioning. The Agency Core 2022 study, a comprehensive survey of over 340 agency leaders, explored these pressures and uncovered actionable strategies that successful agencies adopted to navigate them.

This post highlights critical findings and reveals how agencies can transform obstacles into opportunities for growth.

Agency Core’s 2022 study aimed to understand how agency leaders respond to industry challenges and which strategies led to success. The research identified common issues and analyzed how different agency types—categorized as Thought Leaders, Staffing Strugglers, Change Seekers, Cobblers’ Kids, and Loyalty Builders—handled these hurdles.

• Staffing and Retention Issues

  Among the most pressing concerns, staffing challenges impacted nearly all agencies, with “Staffing Strugglers” feeling the brunt. This group worried about securing skilled talent, with 83% concerned that rising salary demands might affect employee quality. To address this, successful agencies implemented retention strategies such as:

  • Work flexibility: Agencies offering location and schedule flexibility saw improved retention.
  • Employee engagement: Regular check-ins from senior leadership helped boost morale and keep employees invested in the agency’s mission​.

  For agencies still facing high turnover, the research suggested integrating flexible work policies and frequent engagement with leadership as effective tools to improve retention and reduce the impact of staffing losses.

• Balancing Agency and Client Marketing Efforts

  The “Cobblers’ Kids” segment identified a frequent challenge: balancing the demands of client work with their own agency marketing. About 55% of respondents admitted that their agency’s marketing often takes a backseat to client priorities. This imbalance hinders brand visibility and growth potential. To mitigate this:

  • Thought Leadership and Niche Positioning: Agencies that prioritized establishing a niche and building a reputation as industry thought leaders reported greater success in attracting ideal clients. Agencies with strong niche positioning were more likely to retain clients and secure referrals​​.
  • Consistent Content Development: Regular publishing of insights and case studies enabled agencies to showcase expertise, drawing in new business while maintaining client loyalty.

• Client Relationship Management

  Client defection and maintaining loyalty emerged as top concerns, especially for “Change Seekers.” This group struggled to retain clients in a competitive landscape where loyalty is often fleeting. Successful agencies approached this by focusing on:

  • Transparent Reporting: Agencies with a robust reporting system, especially among the “Loyalty Builders” segment, experienced lower client attrition. Regular updates on project progress and initiative performance were critical in fostering client trust.
  • Satisfaction Check-Ins: Regular client check-ins from senior leadership were shown to strengthen client relationships and increase satisfaction​​.

  Loyalty Builders, who excel in client retention, reported higher rates of satisfaction by aligning their services closely with clients’ evolving needs and maintaining open communication channels.

• Positioning Through Thought Leadership

  In the 2022 study, Thought Leaders stood out as agencies that invest heavily in niche positioning and thought leadership activities. This segment, representing 21% of respondents, prioritized developing unique expertise areas, enabling them to differentiate their agency. These agencies typically:

  • Focused on a Specific Client Problem or Industry: Agencies with a well-defined niche, whether based on client industry or problem specialization, saw greater success in attracting and retaining the right-fit clients.
  • Leveraged Content to Demonstrate Expertise: By publishing insights and maintaining active content strategies, Thought Leaders solidified their reputation, which prequalified ideal clients and set them apart from competitors​.

The Agency Core 2022 study underscored that success often depends on how well an agency can adapt and apply strategic solutions to its specific challenges. Here are three strategies to consider:

• Strategy 1: Build a Reputation with Thought Leadership and Niche Positioning

  Agencies with a reputation for thought leadership reported stronger client attraction and retention rates. Focus on a unique positioning that addresses a specific client need, problem, or industry.

• Strategy 2: Strengthen Staff Retention through Flexibility and Engagement

  Offering flexible work arrangements and regular leadership engagement is crucial. High-performing agencies also integrated appreciation programs and ongoing professional development opportunities to foster loyalty and satisfaction.

• Strategy 3: Enhance Client Loyalty with Transparent Reporting and Leadership Check-Ins

  Agencies that emphasize consistent client reporting and regular satisfaction check-ins by senior leaders successfully minimized client defection. Reporting builds trust and helps clients feel their agency’s value, strengthening long-term relationships.

The Agency Core 2022 study reveals that successful agencies are those that adapt strategically to staffing, client retention, and marketing challenges. By embracing thought leadership, fostering staff engagement, and strengthening client loyalty, agencies can navigate industry changes and build resilience.

If you’re interested in more insights from the Agency Core 2022 study, [download the full report here] or join the conversation—share your experiences and thoughts in the comments below.