2.5 - Specific Issues Flashcards
List a few key issues that impact the day-to-day running of an agency.
- Client Satisfaction
- Talent Retention
- Being profitable
- Transparency
Client satisfaction
Client satisfaction is core to agencies. If the people and companies you are serving with your business are unhappy with your performance, they are unlikely to stay as your clients for very long! Of course, you can always win new business, but it’s inefficient to keep replacing clients. A much better strategy is to retain business alongside winning more!
The first step to understanding how well you manage accounts is to measure satisfaction levels.
Independent companies exist that will send surveys to your clients and produce a Client Satisfaction Score (CSS). These surveys are usually run quarterly and allow agencies to measure performance across teams and over time. It’s a great way to celebrate your successes while uncovering where you can improve.
Give three agency monetary model examples (they are typically one of the following)
- Retainer fees
- Project fees
- Variable fees
Retainer fees
A retainer fee is often required when an arrangement is in place, to pay for services based on a scope of work and resource plan over an agreed period. Fees are staff costs, overhead allowance, and an appropriate allocation for profit.
Project fees
These are determined on an individual project basis, often for supplementary services (supplementary to retainer fees)
Variable fees
These fees are based on actual time spent performing a task using hourly charge-out rates for individual staff.
These fees are based on actual time spent performing a task using hourly charge-out rates for individual staff.
Variable fees
These are determined on an individual project basis, often for supplementary services (supplementary to retainer fees)
Project fees
This type of fee is often required when an arrangement is in place, to pay for services based on a scope of work and resource plan over an agreed period. Fees are staff costs, overhead allowance, and an appropriate allocation for profit.
Retainer fee
What other monetary model examples are there beyond project fees, retainer fees and variable fees?
other options include value-based agency compensation, payment by results or scale fees and bonuses.
In recent years, what have agencies tried to do to increase their profitablity in the face of changes to media and production consts?
In recent years, agencies have tried to diversify their offerings and offer more consultative or even licensing services to increase their profitability in the face of changes to media and production costs.
Part of maintaining a positive relationship with a client is..?
Trust
Transparency
Advertisers expect agencies to work in their best interests and spend money responsibly.
Transparency involves full disclosure of fees, expenses, rebates, and discounts.
Detailed evidence of spending should be available as part of the client contract.
External auditors may evaluate agency work to ensure value for investment.
Concerns have been raised about bias in larger media deals, prompting a need for unbiased media planning.
Why has there been criticism levelled at some of the larger media deals between big suppliers and agencies?
Criticism has been levelled at some of the larger media deals between big suppliers and agencies.
Concerns are whether the media planning is as unbiased as it should be or whether it is favouring suppliers that would look better on the bottom line.
This is unfair criticism but something that media professionals should keep in mind.
We should endeavour to deliver plans and campaigns that reach the desired target audience and refrain from being swayed by other pressures across the agency.
he agency world skews the young or old?
The agency world skews young. The IPA’s 2021 IPA Agency Census indicates that the average age of agency employees is 34.6 years. A raft of talent seems to reach a certain seniority and leave agencies. This is an issue that the industry is gradually becoming more attuned to. With the pressure on talent, it’s a shame to waste these years of experience. Undoubtedly, agency leaders will focus on this when developing their talent strategies.
