Fidelity in Marketing: The Key to Success Between Brands and Agencies

In the dynamic world of marketing and advertising, loyalty emerges as a key concept that transcends the personal realm and firmly establishes itself in the professional sphere. The recent reflection by Paul Thorndike, CEO of VML Peru, on customer loyalty to brands invites us to explore another equally significant aspect: the loyalty between clients and agencies. This aspect not only can determine the success of a campaign but can sometimes define the future of a brand. The harsh reality is that maintaining the loyalty of current customers is significantly more profitable than the constant pursuit of new consumers. Thorndike summed it up succinctly by stating that for every sol spent on retaining a loyal customer, 25 would be needed to attract a new one. This assertion resonates strongly at a time when companies face the challenge of not only capturing consumers' attention but also retaining it. However, it is not just about loyalty between brand and customer; it is also about the relationship established between a company and its advertising agency. In this context, brands that have managed to build brilliant and effective communication are those that have cultivated strong and lasting relationships with their agencies. Collaboration and mutual trust are fundamental to developing consistent campaigns that resonate with the audience. The paradigmatic example of this loyalty can be found in the long-standing relationship between Steve Jobs and the advertising executive Lee Clow from TBWA. For nearly three decades, their collaboration produced iconic campaigns that marked a turning point in the industry. The "1984" campaign, which introduced the Macintosh, and "Think Different" are just a few examples of how a relationship built on trust and loyalty can yield extraordinary results. At the local level, the bond between the agency Causa and the beer brand Cristal is another clear example of enduring loyalty. For almost 30 years, this collaboration allowed the brand to maintain its leadership position in a highly competitive market, thanks to memorable campaigns that resonated with consumers. However, the current landscape presents unique challenges. In a context where some brands call on up to 15 agencies to participate in pitches, the question arises about the true motivation behind these decisions. Are they genuinely seeking a long-term relationship, or are they simply interested in the lowest price? Often, brands end up keeping their current agency, but at a reduced cost, which raises doubts about the real value of loyalty in these relationships. Experience shows us that the search for the best possible relationship should be a thoughtful process. During my time as president of the advertising agencies guild, we established a Code of Good Practices for pitches, urging advertisers to exhaust all avenues with their agency before considering a separation. This recommendation, which might resemble the advice of a couples therapist, underscores the importance of prioritizing commitment before seeking new alternatives. Like any relationship, loyalty can have its ups and downs, and sometimes the "magic" may fade. However, it is crucial to remember that loyalty is undoubtedly good business. Investing in strong relationships with agencies not only translates into successful advertising results but also fosters an environment of mutual learning and growth. Ultimately, brands that choose loyalty, both with their customers and their agencies, are betting on a business model that, while challenging, can yield long-term benefits. Just as in personal relationships, loyalty in the realm of marketing and advertising can be the key to a prosperous and opportunity-filled future.