True or False – Savings can be achieved without the loss of service output.
Cost savings are easy to deliver but are often a false economy in the absence of agreed service delivery standards. We call this sentiment “value management”.
It underpins the work undertaken for all of our clients. Be it agency pitches, contract renewals, cost negotiations or media performance reviews, consistent due diligence must be applied to ensure savings generated on behalf of clients are protected through performance accountability.
We’ve got a common objective with our clients. The objective is to ensure that the best possible performance output is received for the fairest possible price. This applies for all communication supplier types.
There are several tools to enable this:
- Benchmarking. We maintain a robust database ranging from head hour costs to production menu items. This database is used to benchmark client costs for service levels across all communication disciplines. These costs are further validated by salary survey standards and independent production specialists where appropriate.
- Individual focus. We assess each agency cost aspect individually to ensure all costs are appropriate for the agreed output levels. We review everything from the Creative Director’s hourly rate and involvement, to the smallest production and studio items!
- Third party production analysis. We also undertake third party production cost benchmarking supported by the scrutiny of independent TVC, digital and print production specialists. TVC production budgets are a significant cost to clients that are often left at the liberty of the production house. In conjunction with our specialists, we identify if estimated costs are appropriate given the specific script/storyboard.
- Media Review and Audit. Considering that the vast proportion of a marketers’ communication spend is allocated against media it is not surprising that there are many areas where significant economies can be identified. We measure delivery of pledged media bonus and added value commitments which are often prone to exaggeration and under delivery. Independent third party analysis in the form of media review and audits ensures that these commitments are identified and fulfilled.
This is just a sample of where and how savings can be achieved without the loss of service output. We have found that without third party assistance, it is often not possible for marketers to continually monitor all cost mechanisms and contractual obligations, yet each of the above areas can yield significant savings whether it be creative, media or production services.