The top two reasons why agencies experience client churn are obvious and mostly avoidable.
The number one reason for churn is that agencies don’t pick the right customers. They are desperate to get the deal, and they start working with people who are not the right fit. They can’t service the customer in the way that the customer needs to be serviced, or the client cannot understand the value that the agency is bringing.
The second reason why agency clients churn is because the relationship lacks respect and communication. There are so many agencies in the world who define their ideal customer as somebody who just “leaves us alone, and lets us do our thing.” Any agency who has that as a mandate for a good client is actually a pretty terrible service organization because they’re not investing time in creating and nurturing a relationship with the client. Without that relationship, they cannot understand what the client needs. Wanting to be left alone to do your stuff and assuming that your stuff fits the client in the right way is a recipe for increasing churn.
Clients churn because you don’t understand them, communicate well enough with them, or respect them.