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Ten keys to avoiding mistakes when starting or ending a
client-agency relationship.
According to conventional industry wisdom, the average client-agency
relationship now lasts about three years. Some seem to self-destruct
as quickly as a Pamela Anderson marriage. The Wal-Mart – Draft
coupling unraveled before the agency produced its first campaign for
the fickle retailer.
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The right agency relationship--new or old--has the right
chemistry to bring you new ideas. |
Why did Wal-Mart dump GSD&M, the agency that helped increase their
sales more than 2,800%? Why did they chose Draft as their new
marketing communications partner? And why didn't the new
relationship work?
Key #1: If it
ain't broke, don't mess with it.
GSD&M's work delivered spectacular results for
Wal-Mart. As it had for years. And that was the problem. They were
the predictable, dependable long-term partner. Not the exciting new
vixen or stud muffin. Best we can tell, Wal-Mart was bored. So they
hired a new marketing maven who hired a new agency. Like many
ill-considered flings, things ended badly. And by the time Wal-Mart
realized they'd made a middle-age crazy mistake, their old reliable
agency wasn't interested in trying to rekindle the relationship.
If your agency is producing results, don't tinker with success.
Key #2: Recognize
that there's a limit to what marketing communications can achieve.
Wal-Mart flat-out owns the price/value end of the retail spectrum.
But they wanted to broaden their market to include more upscale
merchandise (and margins). And, of course, they wanted to do it
without losing their grip on their existing customer base. They
thought Draft could do that.
The laws of marketing communications are about as inflexible as
those that govern physics. And one of them is you can't be all
things to all people. That's why Toyota launched the Lexus brand
instead of introducing an upscale Avalon. Then Scion instead of a
down-market Camry. Expecting an agency to be able to simultaneously
move Wal-Mart up-market and maintain the present position and
customer base was unrealistic, and failure was inevitable. (Although
in this case the relationship didn't last long enough to collide
with that particular piece of reality.)
Make sure your expectations are realistic.
Key #3: Make sure
the styles of client and agency are compatible.
Folks who drive Aston Martins and wine and dine clients with
breathtakingly expensive vodka martinis and trendy sushi aren't
likely to be a good fit with a corporate culture that evolved from
Sam Walton's old Ford pick-up truck and Coke-and-cheeseburger
lunches. That's not to say client and agency have to look, dress,
eat, think and speak alike. Only that their styles shouldn't be so
dissimilar that one side regards the other as hopeless hicks or
effete snobs.
Don't team up with folks you don't like. At least a little.
Wal-Mart isn't the only company that can teach advertisers through
negative example. In fact, the columns of Advertising Age and
The Wall Street Journal are full of cautionary tales:
Key #4: Don't
tolerate sub-par performance.
Buick finally fired McCann-Erickson after decades of insipid –
actually, invisible – advertising. Buick lost market share, momentum
and the opportunity to capitalize on some attractive new models
because they stuck with their old stand-by. The cumulative effect
has been extremely negative for the brand and for the corporate
parent's bottom line.
No agency hits a home run on every assignment. But while one bad ad
won't wreck havoc with a brand, a weak campaign can. And a
consistent record of ineffective work can have a devastating impact
on a company's success or even its survival. Not to mention the
survival of the advertising manager or marketing director who
accepts inadequate performance.
Set metrics and fire an agency that fails to deliver.
Key #5: Work with
an agency that defines "good" the same way you do.
A
few months ago Crispin Porter + Bogusky resigned the Miller business
because they were not comfortable with the quality of work coming
out of their relationship with the client. It's certainly unusual
for an agency to walk away form a eight-figure account over creative
differences. It usually works the other way. But either partner in a
client-agency relationship would be right to call it quits if they
don't agree on what constitutes good advertising.
Before you hire an agency, look at what they do for other clients.
If you like it you're on the way to a good partnership. If you
don't, walk away. Thinking an agency will change its style after
you're their client is as hopeless as thinking a mate will change
her or his habits after you're married.
Realize that what you see an agency do for other clients is what
you'll get, too.
Key #6: Define
exactly what you expect from an agency.
Career Builder put its account into review because their commercials
weren't in the top 10 "most liked" Super Bowl spots in USA
Today's viewer survey. (Despite the fact that Cramer-Krasselt's
campaign vaulted Career Builder past Monster to become the top of
the job board.) Although a top ten "most liked" score is a
monumentally stupid expectation, it is a clear, easily measured one.
That single-minded focus would seem to simplify the search process:
hire Kristin Dehnert, whose consumer-generated Doritos "Check Out
The Girl" was the most liked spot of all in the USA Today
poll.
Of course there are more meaningful expectations: sales increase,
revenue growth or our favorite, return on marketing communications
investment. But those aren't the only possibilities. Maybe the
marketing director is looking for a golfing buddy. Or someone to
pick up the check at the Palm. Whatever the key expectation may be,
define it. Know what you want from an agency and spell it out. You
won't get quantifiable results from a sycophant, and you probably
won't be shamelessly schmoozed by top pros. But if you know what you
really want going in, you're less likely to be disappointed.
Define – and share – your expectations.
Key #7: Be clear
on your fish/pond expectations.
Crispin Porter + Bogusky did brilliant work for BMW's Mini Cooper
brand, but the Mini Cooper was a relatively small fish in CP+B's
large – and fast-growing – pond. When CP+B was not included in the
review for the overall BMW account, they dumped the Mini Cooper
business and took on Volkswagen. By itself Mini Cooper just wasn't
big enough to be significant to the agency.
A recent posting on imedia connection suggested that advertisers
consider agencies at which their account would represent
approximately 30% of total billings. That's ridiculous. By that
standard an agency could only have three clients. A three-client
agency might not have the variety of challenges which encourage
cross pollination of ideas. It would be perilously vulnerable to an
account departing. Objectivity might be impaired by the desire to
say what they think the client wants to hear rather than what it
would be in the client's best interest to say. And it would be
difficult to attract and keep top professionals.
In today's disintermediated marketing communications world only
multinational advertisers need gigantic agencies. (See our "Lean
Team, Fat Rolodex® page). Rather than going for an
arbitrary percentage of billings, it might be reasonable to look for
an agency at which your account would be among the top ten.
Be big enough to matter. After that, don't obsess over size.
Key #8: Good.
Cheap. Sorry, you can't have both.
Fallon is a great agency going through a rough patch right now. You
might think that they'd grab any business they could get. But their
new business director, Helen Weisinger, recently said "We have
turned down lots of business this year on a cost basis. We don't
want to compromise our quality or our margins."
If an agency doesn't get enough income from an account to pay top
people, it only has three options: put cheaper (generally less able)
people on the business, lose money or cheat. Good agencies won't do
any of those things. Shabby agencies will go with cheaper people.
Foolish agencies will lose money on each account and try to make it
up on volume. And dishonest ones will simply cheat.
Don't squander money, but be prepared to spend enough to do the job
well.
Key #9: It's all
about the people.
In a recent presentation to Coca-Cola, the myriad agencies of WPP
were represented by the group's chairman, Sir Martin Sorrell. Sir
Martin is a powerful force in the industry. An incredibly able
entrepreneur. A financial whiz. And an accountant by training who
doesn't actually work on any of the accounts handled by his
agencies. Which may be why the presentation was not successful.
Some agencies have new business teams who go out and wrangle new
accounts, then never see the client again. The most important people
for an advertiser to meet and evaluate are the ones who will
actually work on the account. And at a mega agency that won't be the
chairman. The abilities of the professionals who will be doing the
day-to-day work are crucial. The charm – or impressive bombast – of
the agency's top management, irrelevant. Learn who's going to work
on your business and what their qualifications and track records
are.
Make sure the team you meet is the team that will be working for
you.
Key #10: Define
why you're firing your present agency.
Ernesto Gallo used to be famous for firing an advertising agency
every year. Either he was one of the all-time worst at choosing
agencies, or the problem was with him. And if you're looking for
your third agency in as many years, you might want to consider that
the problem may be you.
Of course there are some obvious reasons to fire an agency:
·
Dishonesty.
·
Failure to live up to schedule and/or budget commitments.
·
Inability to adapt to a fast-evolving marketing communications
environment.
·
Professional incompetence.
·
A
revolving door bringing a constant stream of new people to work on
your business.
·
Carelessness with your confidential information.
Some are more subtle, but just as serious:
·
Not challenging your preconceptions. That may seem like deference,
but
it's actually shortchanging you on the quality of
advice – and involvement
– you should expect.
·
Failure to set or adjust your expectations to marketplace realities.
If you
set a goal of 25% market share with 10% of media
spending, a
responsible agency should point out that the goal may
not be realistic.
·
The same answer for every challenge. It's not always a :30 TV,
especially
not now. It might be behavioral targeting, public
relations or skywriting.
·
Shoddy work. Your brand is a valuable corporate asset. Shoddy work
devalues it.
·
They have plenty to say, but they don't listen.
·
They listen, but they don't have anything to contribute.
Whenever you balance the pros and cons of your
agency consider the cost, time, hassle and effort of bringing a new
agency up to speed on your business.
And also consider the impact your present agency will have when they
go to work for your competitor the week after you fire them. If you
find yourself thinking that your present agency would make a
competitor a stronger marketer, you might want to consider working
out the kinks in your relationship. But if you think your present
agency would be a liability to your competition, fire them ASAP. And
if you're lucky a competitor will hire them.
Naturally a blog on hiring and/or firing an agency wouldn't be
complete without a commercial message. But it's not that BrainPosse
is the right choice for all clients in all situations. We're right
for some clients, not for others. See the Why
Hire Us? Or Why Not? section of our web site.
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