This month we were delighted to have been asked to present at two packed WFA Sourcing Forums in New York and Dusseldorf. The topic was agency remuneration schemes.
Within an ever-changing landscape, currently dominated by data and tech, advertisers are facing the challenges of how to develop the right remuneration model with their agencies. The model needs to drive not only value for money but success throughout their business resulting in higher sales. Remuneration, how you appraise, and measure your Agency landscape is more important now than it has ever been.
Transparency of media contracts, performance-based pay, simplicity of KPI’s, and holding company arrangements are all hot topics that if incorporated into the right model can deliver more effective campaigns, better lasting relationships, and a lower Total Cost of Acquisition.
Using live case studies of global advertisers in CPG and the automotive sector I presented several models confirming that there is never a “one size fits all” approach. It is important to consider all options to get the best solution. Think about using KPI’s and appraisals to trigger or unlock Bonus’, minimum standards to confirm a base level of margin or to open the gate to the possibility of higher remuneration.
Flock top 7 tips are:
1.Get alignment on the overall objectives and priorities (Service, Savings, Performance)
2.Decide what is right for the future by Agency discipline
3.Then look to link, harmonise, align & simplify into one framework. Model benefits. Do the contractual and budget work
4.Do the hard work yourself it gives you control
5.Negotiate then partner
6.Use technology (not just excel!)
7.Have time and budget for communication, roll-out, training, refining, governance, and trouble-shooting
If you are considering reviewing your Remuneration or Agency Appraisal model and want to chat in more detail please get in touch with Julie.Marshall@flock-associates.com