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The Next Era of Agencies: Service and Hospitality as the Ultimate Differentiator

The Next Era of Agencies: Service and Hospitality as the Ultimate Differentiator

The Next Era of Agencies: Service and Hospitality as the Ultimate Differentiator

If you’ve worked with big service firms before, you’ve seen the agency landscape shift. The bloated teams and rigid processes of the past are fading—replaced by something leaner, smarter, and unmistakably human. At LCA, we’re betting on a future where hospitality and service aren’t just nice-to-haves—they’re the strategic edge that sets winners apart. Here’s why.

01

Leaner Teams, Exponential Output

Tomorrow’s service firms won’t mirror yesterday’s headcounts. Think 20 people delivering what 40 once did—or 200 outpacing 400. Forrester predicts that by next year, 40% of firms will cut staff in half while doubling output, powered by AI workflows.


While this is probably a little extreme, we’re still living bits and pieces of this now: Bolt.new spins up landing pages and mini web apps in seconds for us, trained on our brand voice and visual identity and integrated into our growth engine. Add Grok 3 for crisp copy and even deep research, or ElevenLabs for custom voice agents, and the possibilities explode.



This isn’t trimming—it’s amplifying. The old “T-shaped” skillset—broad across the top, deep in the stem—becomes a Roman column of versatility and impact. Operational “tendon roles” start to vanish as AI connects the dots. In 3-5 years, tools won’t just boost us—they’ll replace entire roles. Today, we craft immersive websites in an afternoon. Tomorrow, it’s mobile apps or SaaS platforms, conjured by a few humans and a fleet of agents. Thrilling, sure—but it’s a wake-up call.

02

People: The Irreplaceable Core

Tech’s a force, but people are the pulse. Deloitte’s 2024 report says adaptability now trumps experience 3:1 in hiring—and it’s clear why. The future favors fewer, fiercer players: autonomous thinkers with grit, not order-takers. Junior folks aren’t out; they just need to want it. They need to be adept at using this tools, and make the shift from task-taker to proactive problem-solver, fast.

I saw this last year with a leading AI company—1,000+ strong, wrestling a fluid future. We paused—not the work, but the relentless solution-chasing to take a beat and check-in. Over 45 minutes in a crowded bar, we dove into new roles - both for him and on his team - internal politics, and what success really means at both a project and personal-level. It ended with a handshake and a hug. That wasn’t in the SOW, but it redefined the partnership. Machines don’t forge that.

03

When Tools Democratize, Service Elevates

Your brand can tap the same tech we do—AI can churn out designs (not quite…), analyze trends, draft plans. So what’s left when the tools level off? Expertise—your agency’s mastery—is table stakes. But taste, decisions, and service? That’s the difference. PwC’s 2023 survey shows 73% of execs pick firms for expertise - and that will always matter - yet Gartner’s 2027 forecast pegs 60% of B2B buyers prioritizing relationship quality over efficiency. You want results, yes—but you also want to feel in it with your partners.

04

Hospitality: Your Unassailable Edge


But the real dagger: service, elevated to hospitality, is what tech can’t touch. At LCA, one of our core values is “Be Surprisingly Thoughtful”—going beyond the work to the human, creating connection at a personal level. The details. It’s not about grand gestures; it’s the unexpected follow-up, the insight that shows we’re listening, the care that says you’re not just a client. Edelman’s 2025 Trust Barometer nails it: 82% of execs trust firms more when empathy shines through. AI avatars on a meeting will surely get a smile or be memorable for a moment, but sharing a laugh IRL or working on hard problems together and cultivating shared experiences - there’s nothing agentic about that. 

The firms that win your business won’t just be amazing at what they do, lean, and have amazing taste —they’ll be obsessive about you. As you scout your next partner, look for the ones pairing tools with humanity. Because in this next era, hospitality isn’t a perk—it’s the moat that matters.

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