TrinityP3 Industry Webinars: Super charge your agency with incentive based remuneration

marketing management consultants

Super charge your agencies ��with incentive based remuneration

TrinityP3 Webinar Series Presented by Darren Woolley

25 November 2015


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


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


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


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.


5 major challenges to be overcome

1. Agencies are hesitant to link remuneration to performance



2. The performance criteria prove difficult to agree on



3. The incentive is too small to be an incentive



4. It proves difficult to budget the payment



5. Disputes over the payment of the incentive

http://www.trinityp3.com/2015/06/agency-incentive-payments/


The ultimate incentive system

Step 1: Choose the core strategic / performance

agencies / suppliers



Step 2: Use the same appropriate criteria the marketing team use



Step 3: Agree the size and funding of the bonus pool



Step 4: Calculate the agreed bonus against performance



Step 5: Measure collaboration between agencies



Step 6: Use performance and collaboration

to finalise the agency share


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


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