The Rise of Loyalty Builders: Why Retention Is Becoming the New Growth Strategy

When Growth Stops Feeling Predictable

For years, agency growth followed a familiar rhythm. Tighten positioning. Improve sales. Add pipeline. Close more deals.

But that rhythm is breaking.

Strong optimism across agencies has dropped from 74% in 2023 to 47% in 2025, and 43% strongly agree that finding new clients is harder than ever, compared to just 15% in 2023, according to Agency Core Research. At the same time, 68% of agencies report losing clients in the past year, and 24% now cite client defection risk as a severe challenge, up from 11% in 2023.

Those numbers tell a clear story.

The traditional acquisition-first growth model is no longer stable enough to carry an agency on its own.

This is where Loyalty Builders emerge. Not as relationship experts. Not as “nice” agencies. But as structurally mature operators who understand that in 2026, durability is the real growth lever.

And durability is engineered.

Setting The Stage Growth Dynamics Have Shifted Dramatically

The pressure agencies are feeling is not anecdotal. It is structural.

Strong optimism has fallen from 74% in 2023 to 47% in 2025, according to Agency Core Research. Confidence has declined across every segment. At the same time, 73% say agencies must prove their value in today’s environment, and 86% are making operational or process changes in response to market forces.

This is not a minor correction.
It is a reset.

New business has become materially harder. 43% strongly agree that finding new clients is harder than ever, compared to 15% in 2023. Pipeline development is now the most severe challenge across segments.

When acquisition becomes volatile, growth shifts inward.

That shift changes the operating logic of the entire agency. Expansion slows. Sales cycles lengthen. Competition intensifies. Leaders either double down on acquisition—or begin reinforcing retention systems.

This is the fork in the road.

Agencies that treat retention as relational comfort will feel the pressure first. Agencies that treat retention as structural discipline will absorb volatility differently.

The market is not punishing agencies randomly. It is exposing operational maturity gaps.

The Retention Gap Most Agencies Are Exposed

Most agencies believe they are good at retention.
The data suggests otherwise.

Only 7% say they are extremely effective at increasing client spend year over year, according to Agency Core Research. Fewer than half have formal programs to minimize defection.

At the same time, 24% now cite client defection risk as a severe challenge, up from 11% in 2023.

That is a widening gap.

The industry knows churn risk is rising. It has not built systems to counter it.

Retention fails quietly. It erodes through:

• Inconsistent executive communication
• Reporting that shows activity but not outcomes
• Reactive account management
• No structured expansion planning
• No formal defection-risk visibility

If you cannot point to a documented retention system—cadence, reporting standards, expansion planning, and churn risk signals—you are relying on relationship goodwill.

And goodwill does not scale under volatility.

Agencies without formal retention systems are structurally exposed.

Who Are The Loyalty Builders And Why Do They Matter

Not every agency is struggling equally.

Agency Core identifies Loyalty Builders as the only segment that has significantly increased in size since 2023. While other segments are destabilized or overwhelmed, Loyalty Builders are expanding.

That is not coincidence.
It is maturity.

Below is a structural contrast:

The differentiator is not personality.
It is system design.

Loyalty Builders do not assume loyalty. They engineer it.

They report on both work done and results. They build executive-level relationships. They schedule leadership check-ins. They create specific programs to enhance loyalty. They build processes to increase client spend year over year, according to Agency Core Research.

In a market defined by instability, these behaviors compound.

While others chase pipeline volume, Loyalty Builders reinforce durability.
That difference is widening.

What Loyalty Builders Actually Do The Mechanics Of Engineered Loyalty

Loyalty is often described as trust.
In practice, it is architecture.

Agency Core makes clear that Loyalty Builders differentiate themselves through structured behaviors, not personality traits, according to Agency Core Research.

Here is what that looks like operationally:

1. They Report On Work And Results

They do not stop at task completion updates.
They translate activity into outcomes.

Reporting answers two questions consistently:

• What did we do?
• What changed because of it?

This prevents the silent erosion of perceived value.
Visibility into results stabilizes executive confidence.

2. They Build Executive-Level Relationships

Account management is not confined to day-to-day contacts.
Leadership connects with leadership.

Executive check-ins ensure:

• Strategic alignment
• Budget continuity
• Early signal detection
• Expansion visibility

When relationships are layered, churn risk decreases.

3. They Schedule Structured Leadership Check-Ins

Not reactive calls.
Not only QBRs.

Cadenced conversations designed to:

• Review strategic goals
• Address risk signals
• Surface new initiatives
• Validate value perception

4. They Formalize Loyalty Programs

Fewer than half of agencies have formal retention systems, finds Agency Core Loyalty Builders do.

Formalization includes:

• Defined communication cadences
• Documented retention processes
• Proactive churn-risk review
• Structured client experience checkpoints

This shifts retention from instinct to repeatable discipline.

5. They Build Account Expansion Processes

Only 7% of agencies say they are extremely effective at growing existing accounts year over year.

Loyalty Builders do not treat expansion as opportunistic.
They treat it as planned.

Expansion includes:

• Annual growth mapping
• Identified service gaps
• Proactive idea generation
• Budget forecasting conversations

The Durability Growth Model How Retention Becomes Your Growth Lever

When acquisition weakens, growth must rebalance.

Pipeline volatility forces growth inward.
Weak expansion processes create revenue fragility.
Formal retention systems create structural stability.
This progression forms a durability loop.

Here is the operating logic:

Stage 1: Reactive Retention

• No formal system
• Assumed client satisfaction
• Limited executive alignment
• Expansion happens accidentally

Revenue remains exposed to churn shocks.

Stage 2: Structured Retention

• Defined reporting standards
• Scheduled leadership check-ins
• Expansion opportunities tracked
• Defection risk reviewed periodically

Revenue becomes more predictable.

Stage 3: Engineered Loyalty

• Retention discipline embedded into delivery
• Expansion planning tied to performance metrics
• Leadership alignment institutionalized
• Loyalty programs documented and repeatable

Growth compounds inside accounts.

The insight is simple but structural.

Retention maturity increases lifetime value.
Increased lifetime value stabilizes revenue.
Stabilized revenue reduces dependence on volatile acquisition.
Growth becomes more predictable.

Not because sales improved.
Because churn declined.

Chronic Pain Points Why Many Agencies Still Struggle With Retention

If retention is so important, why is maturity low?

Because informal systems feel easier.

1. Informal Processes Masquerade As Strength

Agencies rely on relationship goodwill.
They assume good work equals loyalty.

But churn risk often correlates with operational inconsistency, not visible conflict.

Retention fails quietly when process discipline is absent.

2. Reporting Chaos Dilutes Perceived Value

Teams produce strong work.
Reports lack clarity.

Without structured reporting, executives struggle to see progress tied to business impact.

Perceived value declines before performance does.

3. Project Turnover Breaks Continuity

Account managers change.
Delivery teams rotate.
Knowledge fragments.

When continuity breaks, loyalty weakens.

Structured systems compensate for turnover. Informal ones amplify it.

4. Expansion Is Reactive, Not Strategic

Opportunities surface accidentally.
Upsell conversations happen late.

Only 7% feel extremely effective at expansion, according to Agency Core Research.

Expansion without structure becomes sporadic revenue—not compounding revenue.

In stable markets, that mistake hides.
In volatile markets, it surfaces quickly.

Practical Diagnostic How To Assess Retention Maturity In Your Agency

Most agencies believe they are better at retention than they are.
The gap becomes visible when you move from belief to structure.

Use the questions below as a maturity diagnostic. Answer honestly. Not aspirationally.

1. Formal Retention Systems

• Do you have a documented retention process?
• Is there a defined cadence for executive-level check-ins?
• Is churn risk reviewed intentionally or only when tension appears?

If the system exists only in your head, it does not scale.

2. Measured Versus Assumed Client Satisfaction

• Do you measure satisfaction in a structured way?
• Is feedback tracked over time?
• Are satisfaction trends visible before renewal periods?

Assumed satisfaction is one of the most common blind spots in agency leadership.

3. Executive Alignment Cadence

• Are leadership conversations scheduled proactively?
• Do executives on both sides engage beyond project updates?
• Are long-term goals revisited quarterly or only at renewal?

Alignment reduces surprise.

Surprise increases churn probability.

4. Structured Account Expansion Planning

• Is there a documented annual growth plan for each major account?
• Are service gaps identified and tracked?
• Is expansion part of delivery conversations or separate from them?

Only 7% report being extremely effective at growing existing accounts.

Expansion without process becomes episodic.

5. Defection Risk Visibility

• Can you identify at-risk accounts before contract renewal?
• Do you track engagement decline, response lag, or budget contraction?
• Is there a formal intervention protocol?

If you cannot see risk early, you cannot engineer durability.

Stability Is The New Growth Advantage

The 2025 environment is not anti-growth.

It is anti-fragility.

Strong optimism has fallen. New business is harder. Client loss is widespread. Loyalty Builders are the only segment expanding in size.

That pattern is not random.
It reflects operating maturity.

Agencies that rely on expansion-first logic are feeling pressure. Agencies that prioritize durability-first logic are absorbing it differently.

Retention maturity is no longer a support function.
It is a competitive differentiator.
It is a revenue stabilizer.
It is a growth lever.

In volatile markets, acquisition wins headlines.
Durability wins decades.

Questions Agency Leaders Are Quietly Asking

1. Is Retention Really More Important Than New Business In 2025?

Retention and acquisition both matter. But when 43% strongly agree that finding new clients is harder than ever, and 68% report losing clients in the last year, according to Agency Core Research, retention becomes structurally critical. It stabilizes revenue while acquisition cycles fluctuate.

When pipeline volatility rises, retention becomes the controllable growth lever.

2. What Is Retention Maturity?

Retention maturity is the presence of formal, documented systems designed to reduce churn and increase account expansion. It includes structured reporting, executive alignment, scheduled check-ins, and expansion planning.

It is not a mindset.

It is operational discipline.

3. What Makes Loyalty Builders Different From Other Agencies?

Loyalty Builders are the only segment that has significantly increased in size since 2023, according to Agency Core Research. They institutionalize retention behaviors instead of relying on informal relationship management.

They build processes that make loyalty predictable.

Maturity—not personality—is the differentiator.

4. Does Good Work Alone Protect Against Client Churn?

Good work is necessary but insufficient. Without visible reporting, executive alignment, and proactive communication, perceived value can decline even when performance is strong.

Retention fails more often from invisibility than incompetence.

5. How Can I Tell If My Agency Is Structurally Exposed?

If retention processes are undocumented, expansion planning is reactive, and churn risk is identified only at renewal, exposure is likely higher than it appears.

Visibility precedes durability.

6. Can Smaller Agencies Implement Retention Systems Without Heavy Overhead?

Yes. Retention maturity is not about complexity. It is about consistency.

Simple, repeatable executive check-ins. Clear reporting standards. Documented expansion reviews.

Small systems compound over time.
Durability does not require scale. It requires structure.