Coping with “client-y” clients

How agencies are turning toxic relationships into positive outcomes

The client paradox

For agencies, managing client relationships can feel like walking a tightrope. The constant pressure to satisfy ever-growing demands, avoid scope creep, and maintain open communication is taking a toll. We dug into these challenges with industry leaders, uncovering some hard truths about how agencies are grappling with their client work. Here's what we learned.

The overservicing trap

Fear of losing clients and the drive to keep them happy often leads agencies down a dangerous path of overservicing. Nearly 31% of agencies are caught in this cycle, offering more than what’s initially agreed upon, sometimes on a weekly basis.

Solution: Knowing when to cut ties with clients who aren’t profitable is crucial. It’s not about being harsh; it’s about preserving your team’s morale and ensuring long-term success.

The communication breakdown

Communication gaps can sink even the best projects. A staggering 42% of agencies say ensuring timely client feedback is a top challenge, while 40% face issues with clients using different tools and processes.

Solution: Implement a centralized communication platform to streamline feedback and approvals. A tool like Teamwork.com can bring all client interactions into one place, reducing misunderstandings and delays.

The scope creep conundrum

Scope creep can quietly erode profitability. 34% of agency leaders identified keeping projects within scope as a significant external challenge. Mismanaged expectations and evolving client demands can lead to inefficiencies.

Solution: Establish clear project scopes and regularly review progress with clients to manage expectations and prevent scope creep from derailing your projects.

3 ways to manage “Client-y” clients

Listen Now

The time tracking trouble

Ineffective time tracking exacerbates many client-related issues. Poor tracking can lead to inaccuracies in billing and resource allocation, causing inefficiencies. Only 35% of agencies track both billable and non-billable time effectively.

Solution: Implement automated time tracking solutions to ensure accuracy and provide real-time visibility into time spent on tasks, helping to keep projects on budget.

Some people don't really make the connection between time tracking and operational performance. I like to share with the entire team how time tracking ladders up to profitability of projects and the company as a whole.

Debra Andrews, President and Founder, Marketri

The capacity planning challenge

Inadequate capacity planning can cripple your ability to meet client demands efficiently. 42% of agencies regularly assess team capacity, but many still struggle with forecasting and pricing client work.

Solution: Regularly assess your team’s capacity and leverage real-time data to improve your resource allocation and project planning.

By focusing on these critical areas—overservicing, communication, scope management, time tracking, and capacity planning—agencies don’t have to suffer from extra “client-y” clients–driving greater efficiency and profitability.