Building Value Into Agency Relationships

Building Value Into Agency Relationships

January 24, 2014

Geoffrey Colon, Group Marketing Manager, Social MediaBing Ads / Microsoft

Today’s discussion

Redefining value

The evolving Agency / Partner business model

How the Consumer Decision Journey picks your agency

Social sentiment and big data as your agency calibration

Programmatic scorecards and surveys

Moving beyond the timesheet: Trends, Innovation, Execution and ROI as the new billable

Redefining value“While businesses in every sector struggle with the influence and disruption digital technology has on their business models, marketers remain (paradoxically) unchanged. Structurally, procedurally, and culturally, many agencies and marketers look broadly the same as they did 50 years ago. It’s Mad Men - with computers.– Kristin Low, ClickZ, January 22, 2014

Redefining value

“There is nothing so useless as doing efficiently that which should not be done at all.” -Peter F. Drucker

The impact of digital technology and media proliferation on marketing has largely been to streamline and increase the efficiencies of existing methods, rather than re-define them. And when the benchmark for success in our industry is campaigns or projects with single digit conversion rates, it’s not hard to conclude that the methods that underpin traditional marketing (be they digital or analog) are a wasteful pursuit.

Redefining value

Hours and costs look inside the agency, but value is created outside the agencyAgencies believe value is created inside, rather than outside, their organizations, because they’re paying close attention to internal activities and very little attention to external outcomesTurn your attention and energies to what you are really buying from agencies

Provide value: Become an expert in identifying, measuring, and analyzing agency business results instead of them selling you internal accounting data


Redefining value







Paid- Creative

- TV

- Radio

- Print

- OOH

- Experiences

- Content Creation

- Purchasing

- Airtime

- Impressions

- Search

- Display

Owned- Creative

- Website design- Social property UX- Ecommerce UX and

UI- Tracking and Analytics

Earned- PR- Social

- Content Distribution

- Tracking and Analytics

Emerging• Trends• Innovation

• Disruption

• Start-ups

• Growth Hacking• Optimization

• Measurement

• Tracking and Analytics

>These offerings still work where the company pays the agency in a vendor mode based on hourly billing (planning > execution)


Redefining value






Consumer decision journey should decide your agency needs

01 02 03 04 05

Open to possibility

Decisionto change

Evaluating

Shopping Experiencing

Discovery, brand awareness, search, explore

Social Networks Q&A, Expert opinions (blogs), Apps

Search for the answer, resolution

Compare prices

Social media

amplification, apps,

web UI/UX, content in perpetuity,

CRM, events

Decide what to purchase

Use incentives

Finding business, contact, CRM, Utility

Mapping the CDJ to Agency directivesMapping the CDJ to Agency directives

If the CDJ is stacked in mobile, what discipline do you need to explore?

If the CDJ is stacked in experiential, how do you also solve for the other 360 degree areas that help amplify and track effectiveness?

If the CDJ is stacked in digital, what sector do you need to solve?

40% of offline transactions start with an online search (including social)

Have you allocated any money toward CRM? CRM is a new form of marketing and can be tracked toward customer retention


Redefining value







• How are you measuring offline?

• Are you analyzing the “good data” from the “big data” to determine effectiveness at a micro level?

• Instead of asking, “Is my agency providing ROI?” Ask, “Is my agency providing ROI within this particular area?” e.g., general awareness of a new product, driving traffic to experiential online Q&A, membership in a community, etc.

• Is your paid and owned media “social by design?”


Redefining value







10 questions total per concentration:

• Scale of 10-1 • Strongly Agree/Somewhat

Agree/Disagree• Objective/Provider • Survey is answered by both agency

and company• Creates three scaled graphs• 0 to 200• Above 100 exceeding expectations/

Below 100 not meeting expectations• 1x per year/2x per year/Quarterly


Redefining value



Social sentiment and big data as your agency survey

Programmatic scorecards and calibration


Moving Beyond the TimesheetRequire each agency to deliver a trend report in their field of expertise 1x per quarter/2x per year/1x per year

Task the agency with execution

Enable digital measurement into the equation

Build 20% of compensation into results

Agency Partner Checklist

Evaluate if you have the right agency partners via CDJ tracking

Measure and map where your customer is prior to choosing an agency. If you have a current partner, reconfigure based on the CDJ experience (Amazon)

Invest in social sentiment softwareTracking offline and online campaigns via earned media is a must (IBM, Coca-Cola, Kraft)

Create scorecards to determine relationship barometerAre both partners meeting the objectives? Are both partners being realistic in their asks? Has everyone refined their skillsets for success? Can we trade for the right players to win the league?

Prepare for the futureAn agency is only as good as executing its strategy and thought leadership in a dynamic climate

Questions? – [email protected]

Twitter: @djgeoffe Blog: futuristlab.tumblr.comPodcast: spreaker.com/user/futuristlab SlideShare: slideshare.net/geoffreycolon

Building Value Into Agency Relationships

Business

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