Knowing When It’s Time to Reposition Your Agency

Agency CEOs and CFOs often find themselves grappling with a deceptively simple question: Are we still positioned correctly in the market? Competitors emerge, technologies advance, and client expectations shift—often subtly at first. Recognizing the right moment to reposition is rarely about reacting to an immediate crisis; it’s about discerning patterns before they become problems.

Repositioning isn’t a matter of rebranding or marketing spin. It’s about redefining your agency’s place in the market: who you serve best, the unique problems you solve, and how you create transformative outcomes. This isn’t just a narrative exercise; it’s a strategic choice that can open doors to new opportunities, stabilize your margins, and ensure you’re seen as the indispensable partner your clients need.

The following insights—drawn from real stories of agencies large and small—offer a lens through which you can evaluate your own firm’s positioning. These are not hypothetical case studies. They’re reflections of challenges agencies repeatedly face. Use these scenarios as a diagnostic tool to determine whether it’s time to refocus your strategy.

Signs It Might Be Time to Reposition

Stories and Insights

1. A Blurred Client Base

One agency spent years growing organically, taking on clients across a wide range of industries. At first, this brought in steady work and stable revenue. But over time, their portfolio became a patchwork of accounts that didn’t share a common thread. Leadership hesitated to narrow their focus, fearing they’d lose opportunities. As a result, their value proposition became muddled. They were no longer seen as experts in any one area, which hurt their ability to win high-margin work.

Reflection: Does your client roster reflect a clear focus, or is it a collection of unrelated industries? Are you missing out on premium opportunities because you haven’t committed to a niche?

2. Cultural Drift and Team Misalignment

Another agency prided itself on a vibrant in-office culture that drove collaboration and creativity. But as hybrid work took hold, something shifted. Staff morale declined, and employees felt increasingly disconnected from leadership. Informal alignment—once built on casual conversations—was lost. The result? A team that struggled to rally around big pitches and a leadership group unsure of how to re-engage their people.

Reflection: Have you noticed a drop in morale or engagement since moving to a hybrid or remote model? Is leadership providing the visible direction and communication needed to keep your team unified?

3. Leadership Indecision on Positioning

Many agencies face internal debates over whether to focus or stay broad. One firm’s leadership team was deeply divided. Some believed narrowing their scope would reduce opportunity, while others argued that specialization was the only way to stand out in a crowded field. The ongoing disagreement led to analysis paralysis. Unable to align around a strategy, the agency remained stuck, losing competitive ground and struggling to grow.

Reflection: Is your leadership aligned on a clear direction? If not, what’s keeping you from making a decisive move?

4. Increased Competition and Commoditization

A generalist agency found themselves increasingly undercut by smaller, specialized competitors. These niche players weren’t cheaper; they were simply perceived as experts. Clients no longer sought the agency’s services based on value but pushed for discounts instead. This shift in how they were viewed by the market resulted in relentless fee pressure and a declining win rate.

Reflection: Are you losing out to competitors who have a clear niche? How often do you find yourself competing on price rather than value?

5. Clients Demanding Outcomes, Not Just Execution

Another agency realized that their clients’ expectations had changed. No longer satisfied with deliverables alone, clients wanted measurable outcomes. But the agency’s proposals still emphasized what they would do rather than what their clients would achieve. This misalignment made it harder to close deals with larger, more strategic accounts.

Reflection: Are your proposals centered on client outcomes, or are you still focusing on what you’ll deliver? How often are you talking about the results clients will experience?

6. Flat or Declining Revenue Growth

One agency hit a revenue ceiling. Despite retaining their clients, they struggled to win new business at higher fees. Their generalist approach kept them in a perpetual state of competing for the same types of projects, with no clear path to higher-value opportunities. Over time, their growth plateaued.

Reflection: Has your revenue flattened? If so, what might be holding you back—your positioning, your pricing, or something else entirely?

7. Margins Under Pressure

Another firm had steady revenue but declining margins. Their reliance on billable hours meant they had to continually scale headcount just to keep up. As competition grew, they faced more pressure to discount rates. Even though the top line looked healthy, their profitability was eroding.

Reflection: Are your margins shrinking despite stable revenue? Could a more clearly defined position allow you to charge higher rates and regain profitability?

8. Declining Client Advocacy

One agency’s longest-standing clients stopped referring them. The agency realized that their messaging no longer highlighted what made them unique. Over time, even loyal clients began seeing them as interchangeable with other providers.

Reflection: Are your clients still actively recommending you? If not, what’s changed in how they perceive your value?

9. Shift in Perceived Expertise

When prospects start asking more about cost than strategic insight, it’s a red flag. One agency noticed their proposals were being compared solely on price because their messaging didn’t clearly communicate expertise. They realized they were competing on inputs rather than outcomes.

Reflection: Do your prospects see you as a strategic leader, or just another service provider? What would it take for you to become the go-to expert in your space?

10. Lead Quality and Volume Shifts

Another agency found that while inbound inquiries still came in, the quality had declined. They were attracting smaller, lower-value clients instead of the strategic partnerships they wanted. Their unfocused positioning meant their pipeline skewed toward one-off projects rather than long-term, profitable engagements.

Reflection: Has your pipeline become more reactive than proactive? Are you attracting the type of clients you want, or only those who see you as a low-cost option?

Positioning as Both a Response and an Opportunity

While many of the signals we’ve outlined suggest problems that repositioning can address, it’s also worth remembering that positioning can be proactive. Sometimes the best time to refine your positioning isn’t when you’re feeling pressure—it’s when you see a chance to elevate your agency to the next level. Positioning is not just about fixing issues; it’s also a means of seizing opportunities.

A Success Story

One agency’s leadership made a bold decision to rethink their positioning, focusing on the clients they served best. Instead of chasing every lead, they concentrated on their ideal-fit clients, aligning their expertise, offerings, and pricing with those clients’ most critical problems. The result? A doubling of revenue from those ideal clients, a 39% overall increase in income, and the expansion of their client base from local accounts to prominent national brands.

Positioning as an Aspirational Framework

Repositioning can also be an opportunity to reimagine your agency’s future and inspire your team. By balancing authenticity with aspiration, you can create a vision that energizes everyone. It’s about painting a picture of what you could become. Positioning gives you a framework to focus on where you want to go and how you want your agency to grow. It’s a way to inspire your people with a shared, exciting vision that they genuinely want to be a part of.

By viewing positioning as both a response to challenges and a gateway to opportunity, you ensure that it becomes a forward-looking exercise that energizes your entire organization—helping you remain relevant, resilient, and ready to lead in a constantly changing market.