How do you manage a client relationship where the account represents a significant portion of the agency's revenue, and what risks do you foresee?

Situation

In my previous agency, a single telecom client accounted for 70% of our revenue. While the partnership was strong, the client's quarterly reviews became increasingly demanding, and a new CMO was rumored to be considering a pitch.

Task

My task was to diversify the client's reliance on us by embedding our services deeper into their ecosystem, while simultaneously preparing a contingency plan to mitigate revenue loss if they left.

Action

I initiated a free digital-maturity audit for the client, which revealed gaps in their CRM and loyalty programs. I proposed a new retainer module to manage these areas, which increased our contract value by 30% and made switching costs high. Internally, I mentored a business development team to prospect for two new retail clients, achieving pitch wins that reduced the telecom's revenue share to 50% within a year. I also maintained transparent communication with the client, sharing our agency's growth plans so they didn't feel taken for granted.

Result

The client remained for two more years, and when they eventually shifted to a global AOR, our revenue only dipped 15% thanks to the new accounts, which was manageable without layoffs.