Why SMEs keep changing digital marketing agencies and have no results 

Small and medium-sized enterprises (SMEs) typically hire digital marketing agencies with the primary goal of driving tangible results, particularly an increase in sales. However, when these SMEs decide to switch agencies or terminate their contracts, it often leads to a situation where both parties end up losing. The SMEs lose the investment made in the agency without seeing the expected results, while the agencies lose goodwill and the opportunity to build long-term client relationships, along with potential referrals. No business owner or agency wants a partnership to fail. While there are certainly some agencies in the market that may not deliver as promised, SMEs can take steps to ensure a more successful, mutually beneficial relationship with their marketing partners. 

Below are three common issues that arise when SMEs engage with a digital marketing agency:

1. Unrealistic Expectations

The “10x” trend has gained significant traction in recent years, with many SMEs expressing their desire for tenfold results, whether it’s in terms of return on investment (ROI), business growth, or campaign performance. This trend was popularized by entrepreneur Grant Cardone in his book, “The 10x Rule,” and has since influenced many business owners to seek extraordinary results from their marketing efforts. While it’s perfectly fine to have high expectations, they must be grounded in reality. For instance, achieving substantial results with a minimal advertising budget is often unrealistic. It’s worth noting that even Grant Cardone’s company spends over $2 million monthly on advertising, and even then, not all campaigns are successful—such is the nature of marketing. A strong working relationship between SMEs and their agencies requires effort and understanding from both sides. Unfortunately, some SMEs expect digital marketing to be a magic solution that can instantly transform their business. At the same time, many agencies fail to communicate the realistic outcomes of digital marketing, leading to a misalignment of expectations. When this communication breakdown occurs, SMEs often feel misled, prompting them to continually switch agencies in search of the elusive success they’ve envisioned.

2. Growth vs. Fixed Mindset: The Key to Successful Agency Partnerships

We often tell our team that if they consistently face challenges with clients or receive frequent complaints, it’s important to reflect and consider that the issue might lie with them rather than the client. This principle applies equally to SMEs. If you’re continually changing digital marketing agencies without seeing the desired outcomes, it may be time to take a closer look at your own business practices. This introspection is especially crucial if your competitors are working with the same agency and achieving positive results, while your experience has been less successful. The question then becomes: where is the problem?

This situation highlights the difference between a growth mindset and a fixed mindset. A fixed mindset is characterized by the belief that circumstances, including digital marketing efforts and results, are set in stone and unchangeable. On the other hand, those with a growth mindset believe that with effort and collaboration, they can improve their digital marketing campaigns and achieve better results. Most of our successful clients possess a growth mindset. They engage with us proactively to refine and enhance their campaigns, approaching challenges as opportunities for improvement.

These clients are also honest with themselves and know when to seek help. For instance, a client recently acknowledged, “I think the campaign isn’t performing well because my sales script needs improvement. Can you offer some advice?” This willingness to confront the issue head-on and work together on a solution is a hallmark of the growth mindset. Rather than avoiding the problem, this client was transparent and collaborative, which allowed us to work together effectively to optimize the campaign.

3. From Vendor to Partner: Shifting the Dynamics for Better Results

This leads me to another crucial point: the difference between treating an agency as a partner versus treating it as a vendor. Many SMEs approach their agencies as mere vendors, and this mindset can hinder achieving successful outcomes. When clients and agencies collaborate as a cohesive team, even challenging campaigns can often be turned around to deliver positive results.

Consider the situation where the quality of leads is poor. Is the marketing agency at fault for generating low-quality leads, or does the responsibility lie with the client’s sales team for not effectively nurturing those leads? It’s a tricky question, but playing the blame game doesn’t help anyone. Instead, working together to diagnose the issue and improve the results as a team is far more productive.

For example, if the leads are considered poor quality, gathering more insights from your sales team can be invaluable. Why are these leads deemed inadequate? Is it because they’re not responding to calls, missing appointments, or not converting during meetings? There can be various reasons for a lead being perceived as low quality, each requiring a different solution.

If the issue is missed appointments, an automated SMS reminder sequence might help. Your agency can suggest effective strategies to address the problem. Or, if leads don’t recall inquiring about your services, perhaps the landing page needs to be more informative. Regardless of the issue, identifying the root cause is essential, and this requires open communication and insights from the client.

A problem-solving approach like Toyota’s “5 Whys” can be helpful, where you keep asking “why” until you reach the core of the issue. The agency can only offer appropriate solutions if they fully understand the problem, which underscores the importance of collaboration. It truly takes two to clap.

If you collaborate with agencies, one essential piece of advice is to focus on being data-driven and consistently track your metrics. Key performance indicators such as Cost Per Lead, Cost Per Sale, and Conversion Rate are vital for setting benchmarks and evaluating the agency’s performance objectively. Relying on intuition or gut feelings isn’t enough; your decisions should be guided by hard data.

By establishing realistic expectations based on these benchmarks, maintaining a growth mindset, and treating your agency as a partner rather than just a service provider, you’re more likely to build a strong, successful relationship that yields positive results.

Ted is the co-founder of Ice Cube Marketing, a digital marketing agency in Singapore that has been operating since 2015 and has helped more than 500 SMEs grow their business through Facebook and Google ads.