Agency Compensation (Advertising & Marketing)
Why?
One of the hottest topics in marketing today is the concept of 'Value-based Compensation'.
This in the well publicised context that agency margins have been under considerable pressure as the basis of remuneration has swung away from commissions towards 'cost-plus' pricing.
Accordingly, many clients and agencies are seeking to implement a system which reflects the value that agencies bring to the businesses of their clients.
This has the effect of directly linking a component of the agency's compensation to the client's business goals, creating alignment of interest.
What?
Agency Relationship Optimizer is used to create a value-based compensation process through performance incentives and assessment metrics across a mix of three key dimensions. You are free to choose one, two or all three dimensions in your agency compensation framework.
Outcomes
(Lag indicators) |
e.g. sales volume, market share gain |
Drivers
(Lead indicators) |
e.g brand awareness, recall |
Relationship
Measures |
e.g. creative quality, strategic insights, account service |
Importantly the compensation measures can be configured for individual agencies, brands and countries/regions.
The application is completely configurable, flexible and its processes are email enabled. Its centralized reporting and administration make it ideal for implementing a compensation system on a regional or global basis.
How?
Agency Relationship Optimizer is an 'on-demand' web application that users from anywhere in the world can access without having software installed on their computers.
It has been designed to produce immediate returns and there are no complex installation issues. Indeed most clients are up and running in a few days.
It can be adopted as a software-only tool or delivered fully managed by one of our consulting partners in the USA, UK, Australia, New Zealand, Europe and Asia.
These partners are: Morgan Anderson (USA), Roth Associates (USA), Brand Action Team (USA), Agency Assessments International / Ark (UK/Europe/USA); Navigare (Australia); The Clinic (Australia); MDA Asia-Pacific (Asia); Aqumen (New Zealand).
Now!
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