An agency’s first question to a new client shouldn’t be about budget. It should be about value. Specifically, what is a new customer worth to your business? If they go straight to discussing retainer fees, they’re focused on their bottom line, not yours.
Understanding the lifetime value of a customer is crucial. For example, if you run a plumbing business and know that a customer will likely spend $1,500 over their lifetime, it completely shifts the conversation.
You’d be willing to invest significantly in acquiring that customer often much more than the agency’s retainer. But if the agency doesn’t ask about this first, they risk proposing less effective strategies that won’t achieve your goals.
If they prioritize their fee over your ROI, you’re setting yourself up for disappointment. Agencies that skip this fundamental question often end up wasting your money, chasing metrics like impressions or clicks that don’t translate into bookings.
Make sure your agency understands your customer value upfront to ensure you’re both on the same page about what success actually looks like.
Digging into customer worth not only informs budget discussions, it shapes the entire strategy. If an agency doesn’t talk about how many customers return or how much they spend, they haven’t done their homework.
If an agency can’t articulate your potential ROI based on the value of a customer, they’re likely not the right fit. Keep your focus on what makes your phone ring and jobs booked, not just on towing the line about retainer fees.