In communications and marketing, one of the most frustrating (and common) problems agencies face is ‘client ghosting’. This occurs when potential clients, who approach the agency to launch a pitch or request a commercial and creative proposal, suddenly stop communicating after receiving the proposal. This recurring phenomenon of the ‘ghost client’ (or rather, the ‘ghost prospect’) disrupts the agency’s workflow, affects the company’s financial stability and lowers team morale. With the expansion of the communications industry, this problem has only grown, as it is very quick and cheap to browse the internet, select a handful of agencies and send them a simple email requesting a pitch and their best creative proposals. As the problem grows, it is crucial that agencies identify it and develop strategies to tackle it so as not to waste time and talent.
Understanding ‘Client Ghosting’
‘Client ghosting’ occurs when a client, after requesting a proposal or creative brief, stops responding to emails or calls from the agency involved in the pitch. Suddenly. Without prior notice or any explicit reason. In practice, agencies operate in a market where any potential client can request one or more detailed proposals, receive them in their inbox and then disappear without reply. This represents a waste of valuable time and resources, and leaves teams feeling undervalued and frustrated.
The impact of ‘client ghosting’
The financial impact of ‘ghost’ clients is by no means negligible, as agencies invest hours in drawing up proposals and producing initial deliverables with no guarantee of success… or of payment! This loss of billable hours puts pressure on the profit and loss account and reduces profitability.
Furthermore, we run the risk of demoralising teams, who may feel that their work is worthless or of inferior quality. When the effort and passion put into a project are met with silence, frustration sets in and morale plummets. For smaller agencies, this can be particularly damaging, as each project accounts for a large proportion of their workload and revenue.
For example, a public relations agency might spend weeks drawing up a comprehensive campaign proposal. After the presentation, the client disappears, leaving the agency with unpaid hours and a feeling of abandonment. Unfortunately, this situation is all too common and highlights the need for strategies to combat ‘client ghosting’.
Identifying red flags
To reduce the risk of ‘ghost customers’, agencies must recognise potential warning signs at an early stage. The most common signs are:
- Vague briefings: Clients who provide incomplete (or non-existent) briefings may lack commitment to a potential new communications or marketing project.
- Unrealistic expectations: Clients who want quick turnaround times or a lot of work in return for little or no payment may not appreciate the agency’s efforts.
- Poor communication: Difficulty in contacting the client or receiving only sporadic replies may be a warning sign or an indication that the process (or the agency) is not being taken seriously enough.
- Vague quotes: Clients who are reluctant to discuss quotes or payment terms in advance are deceiving both themselves and the agencies they approach. How can you go out to buy something without a budget in mind?
Recognising these signs will enable us to take proactive measures that will save us time, money and a fair bit of hassle.
Strategies for reducing ‘client ghosting’
- Clear communication: From the outset, set out clear expectations regarding the scope, deadlines and outcomes of the service. Regular client-agency meetings can help to maintain commitment and accountability.
- Legal and contractual protection: Draft contracts setting out the terms and conditions of engagement, including payment schedules and delivery milestones. Ensure that there are clauses in place to protect the agency in the event of non-payment or sudden termination.
- Building strong relationships with customers: Establishing a good relationship with customers can foster trust and reduce the likelihood of ghosting. Understand their needs and expectations to create a collaborative relationship rather than a purely transactional one.
- Initial deposit: Requesting an initial deposit can ensure the client’s commitment and cover initial costs, thereby reducing financial risk.
- Use non-disclosure agreements (NDAs): Non-disclosure agreements can ensure that shared information and ideas are protected, deterring clients from taking the work and disappearing.
The ‘ghost client’ poses significant challenges for public relations and marketing agencies. These are challenges we must not overlook. If we are able to understand the problem and spot the red flags in good time, we will be better prepared to enhance the reputation of our work and uphold the dignity of a sector which – at times – is naïve and generous to the point of foolishness.