In March, Steven Wales of Decideware presented a course at the ANA School of Marketing “Agency Lifecycle Management – Developing win-win agency relationships that deliver effective marketing campaigns”.
The course guided attendees through the complex agency lifecycle management environment including roster management, agency compensation strategy, scope of work management and performance and relationship management.
Here are some of the key highlights from the class:
Agency Roster Approaches
There are several different agency roster approaches ranging from independent models where agencies are hired for specific projects with limited collaboration between agencies to fully integrated models where a holding company is responsible for producing all marketing assets. So how does an advertiser choose which model is best? It is important to understand that it is possible and often desirable to implement different roster strategies for each marketing category.
There are 2 key criteria to consider:
There are pros and cons to each approach, so it is important that you weigh these closely before selection an approach that works for you. Considerations around company size, brand portfolio and geographical reach will impact the thinking around your choice of model.
Agency Relationship and Performance
It almost goes without saying that the key success factor to develop effective marketing programs is to partner with agencies that create great work. To achieve that commercial objective the partnership must be authentic and based on trust and transparency. A 2015 ANA study Enhancing Client/Agency Relations supports this goal; however, it revealed partnership issues exist between clients and agencies in categories such as briefing, approvals, transparency and personnel. So a key to building a successful relationship with agencies is to develop a sound agency evaluation program with the following characteristics:
Agency Compensation Models
Agency compensation is one of the most important aspects of the client / agency relationship. Compensation models come in all shapes and sizes but can all be classified into 3 major categories –
As you move from input models to outcome models, risk and complexity increase. Understanding which model is best for your organization, based on your company size, management oversight capabilities and desired value is critically important.
Scope of Work Program
Once your compensation models are determined, it is important to operationalize the model with a solid scope of work program. A 2014 survey with the WFA and Decideware determined that over 60% of respondents do not have a standard company-wide method to execute their scope of work process. Furthermore, 68% do not have a centralized database or location where current and historical scope information is stored. It is important that for a sound program you include 3 key elements:
Whether you are a seasoned marketing procurement professional or new to marketing procurement, this course gives you both theory and practical advice to manage successful agency relationships. Please contact Steven Wales at 610-248-1592 or email@example.com if you are interested in attending this course or bringing it in-house for your entire team.