trinityp3 industry webinars: super charge your agency with incentive based remuneration
TRANSCRIPT
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marketing management consultants
Super charge your agencies ���with incentive based remuneration
TrinityP3 Webinar Series Presented by Darren Woolley
25 November 2015
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marketing management consultants
What we will discuss today
• The benefits of incentive based remuneration
• Defining performance
• Developing criteria - Soft, medium & hard
• Methods of PBR
• The five challenges to overcome
• The ultimate incentive model
• Questions
• Past webinars
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marketing management consultants
Performance or Incentive Benefits
Benefits: • Improved agency
performance with incentive for achieving results
• Rewarding agencies for outcomes and not inputs
• Encourages competition to achieve goals and not competing over your budget
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marketing management consultants
Performance or Incentive Criteria
Business Performance
• Sales Volume • Volume Growth • Relative Brand
Performance • Composite
Performance • Market/brand share • Customer loyalty • Brand equity • Brand profitability
Marketing Performance
• Advertising Awareness
• Brand Image Shifts • Attitude Ratings • Ad enjoyment • Brand personality • Predisposition to buy • Ad scores • Persuasion index
Agency Performance
• Agency Service delivery*
• Relationship Management*
• Functional competencies*
• Contribution to ‘branding’
• Project management* • Administration* • Cost Efficiency* • Pro-activity* • Collaboration*
* Can be measured, managed and maximised using Evalu8ing. Find out more at www.evalu8ing.com
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marketing management consultants
Performance or Incentive Models
Types: • Bonus - additional to the
agreed profit margin. • Cost recovery - represents
all profit. • Shared risk and reward -
agency puts % of margin at risk and advertiser meets that % in pool.
• Earn back - agency puts % of margin at risk to be paid in results.
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marketing management consultants
5 major challenges to be overcome
1. Agencies are hesitant to link remuneration to performance
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marketing management consultants
5 major challenges to be overcome
2. The performance criteria prove difficult to agree on
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marketing management consultants
5 major challenges to be overcome
3. The incentive is too small to be an incentive
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marketing management consultants
5 major challenges to be overcome
4. It proves difficult to budget the payment
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marketing management consultants
5 major challenges to be overcome
5. Disputes over the payment of the incentive
http://www.trinityp3.com/2015/06/agency-incentive-payments/
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marketing management consultants
The ultimate incentive system
Step 1: Choose the core strategic / performance
agencies / suppliers
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marketing management consultants
The ultimate incentive system
Step 2: Use the same appropriate criteria the marketing team use
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marketing management consultants
The ultimate incentive system
Step 3: Agree the size and funding of the bonus pool
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marketing management consultants
The ultimate incentive system
Step 4: Calculate the agreed bonus against performance
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marketing management consultants
The ultimate incentive system
Step 5: Measure collaboration between agencies
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marketing management consultants
The ultimate incentive system
Step 6: Use performance and collaboration
to finalise the agency share
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marketing management consultants
TrinityP3 Webinar SeriesAugust 26: The latest trends in agency remuneration September 9: Creating transparency and trust in media September 23: Transforming Production for the 21st Century October 7: How many agencies do you need and how to get there October 21: Aligning your digital marketing to marketing November 11: The challenges for Marketers in a carbon constrained future November 25: Super charge your agency with incentive based remuneration Presentations: http://www.slideshare.net/darrenwoolley Videos: https://www.youtube.com/user/dazzap3/videos
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marketing management consultants
For more information contact:
TrinityP3 Pty Ltd Sydney
+612 9964 9900 Melbourne
+613 9682 6800 Hong Kong
+852 3478 3982 Singapore
+65 6631 2861
[email protected] www.trinityp3.com
Trinityp3.com/blog/ @TrinityP3 TrinityP3 TrinityP3.StrategicMarketingConsultants