Feature: Negotiating the roster maze

It is a well known fact that organisational behemoths such as the BBC or Transport for London run hundreds of agency rosters, encompassing thousands of preferred suppliers from advertising agencies to taxi-cab firms. But no matter what the size of your company, at some point, you may find yourself in need of some agency support.

Client companies appoint agencies for many different reasons. Sudden influx of work may have created a too-heavy workload, and an external agency is required to mop up the excess. Alternatively the client may need specialist skills that are not present in their own company. Whatever the reasons (and there are as many reasons as there are agencies), the prospect of finding and appointing an agency, never mind an agency roster, can seem a little daunting.

As consumers have increasingly been reached by more than one marketing channel, the sales promotion industry in turn has extended its offering. So much so that promotional marketing is fast becoming the generic term that encompasses everything from on pack to experiential to digital campaigns. This in turn has further muddied the waters for those wishing to appoint an agency. Should you appoint a specialist agency for just one facet of your campaign? Or would it be best to work with an “integrated” agency who could deliver against all your promotional marketing needs?

For some people the whole process will fill them with dread, but for others, it will feel like a great opportunity to bring fresh thinking and understanding to their businesses.

Like any business project, research and preparation are key. If you are clear about your requirements, it will be easier to decide on whether you need a single agency or a roster of agencies. Keep in mind whether or not you have enough work to engage multiple agencies on a roster.

Here are six tips to try and ensure that you make the process as simple and effective as possible.

Have the authority

Before you start the process, be sure that you have the authority to see it through. There is nothing more infuriating than discovering that the person in head office had not been consulted and is insisting that you stop the process.

Know your requirements

Know what your requirements of an agency are. Define what you need your agency to deliver. Why do you need to promote sales? What is happening at the moment? How well do you understand all the techniques available? Do you need them to have experience of your market or will their lack of knowledge bring a fresh perspective? Size may also be an issue. Do you want to be a big fish in a small pond or a small fish in a big pond? Neither is wrong.

Make it manageable

Choose a manageable number of agencies to pitch. Once you have narrowed your list down, we would normally recommend a maximum of four agencies for your final pitch list. Any more than four and there is a danger that you will not get the commitment from the agencies. Agencies will pitch if they have a one-in-four chance of winning your business, not if they have a one-in-ten chance. In addition you’ll need to be able to spend enough quality time getting to know them in advance of the final presentation.

Issue your brief

Issue a written brief and give agencies access to all key decision makers. The pitch brief needs to include everything that you wish the agency to cover in their presentation. However, it is unrealistic to expect that this should include all that you anticipate the agency to deliver during your relationship, as this would be too great to detail. Equally, if the chairman is going to be part of the final decision process, it is important that the agencies have access to him or her in advance of the final presentation.

Plan your pitch

Decide on the type of pitch that you are going to have. The traditional “beauty parade” where agencies presented the creative work that would run are becoming less relevant. Instead, an increasing number of clients are opting for strategic presentations or workshops where they can get a feel for the way that an agency thinks and what they would be like to work with.

Plan your budget

Discuss remuneration in advance of the final presentation. It can be very disappointing to fall in love with an agency and an idea, only to discover that 50 per cent of your marketing budget will be going on their fee. Ask the agencies to provide details in advance of the pitch indicating staffing resources, overheads, profit levels, etc. This will allow you to have a ball-park indication of the likely fee levels involved.

In the end, most clients will appoint the agencies with whom they feel most comfortable. However, recent research from AAR stated that 88 per cent of clients believe client/agency relationships fail for avoidable reasons. Furthermore, the majority of these can be traced back to the lack of time invested in how the day-to-day relationship is going to be managed following appointment. Whether you need a single agency or a roster, conducting a full induction and establishing working practice is imperative. If this is overlooked, it is a bit like putting down the carpet before you paint the walls – it’s going to end in tears.