Press Release \'Client of Choice\'
CEB researched the Aprais database and found that clients can get 28% more commitment from their advertising and marketing agencies.
Published on: Mar 4, 2016
Transcripts - Press Release \'Client of Choice\'
PRESS RELEASE‘Client of Choice’ rating can increase agency commitment up to 28%Landmark study reveals the value of a good client-agency relationshipLONDON, Friday 27th June 2008Advertisers who are considered “client of choice” status by their agencies stand to gain anincrease in the agencies’ commitment to their account by up to 28%, according to a recentstudy. An extensive data-mining exercise of several million data inputs conducted by London-based APRAIS and the Advertising and Marketing Communications Roundtable, a divisionof Corporate Executive Board, shows that the most important factor influencing agencycommitment to an account is whether that client is considered to be “Client of Choice” by theagency.The analysis conducted by the Roundtable was based on anonymised data from more than1,400 agency-client relationships and several million individual questions answered throughthe APRAIS client-agency evaluation system.The study, conducted earlier this year, investigated the different factors that drive agencycommitment to the client account, an important measure that impacts how an agency allocatestalent to the client, how deeply agency management is involved with the client, their level ofinitiative, and their willingness to work as a business partner beyond advertising (all thingsmost advertisers say they want from their partners). Among various drivers tested, the twocompanies found that the most important driver was whether the agency considered the clienta “Client of Choice” (defined as enjoyable to work with, providing challenging projects, etc). Infact, clients with high client-of-choice ratings can realize increased agency commitment of upto 28%.Speaking of the findings [APRAIS spokesperson] said; “In what can often be seen as master-servant relationships, this shows that clients can actually extract greater value if they treat theagency as a real partner. Of course, the agency has to live up to the trust placed in it by theclient, otherwise it won’t last. [He/she] said. “We pride ourselves on our total objectivity and ofour understanding of issues that drive successful relationships”.Interestingly, many clients believe that the most important factors driving client-of-choice arebeyond their control. Andy Armstrong, Practice Manager for the Advertising and MarketingCommunications Roundtable, said “Contrary to conventional wisdom, the client actually hasmore control over its status as a client-of-choice than it thinks. Many clients believe client-of-choice is solely driven by the client brand or the value of their account, which, for the most part,is out of the MarComm executive’s control; however, many clients under-appreciate client-of-choice drivers that are within their control, eg, offering timely feedback and recognition, beingopen to fresh creative ideas and new media opportunities, and being a smart consumer ofagency resources. ” END Page 1/3
PRESS RELEASE Driving Agency Commitment Becoming a Client of Choice has a 28% average impact on …and is, in turn, driven by other attributes within the all components of Agency Commitment… client’s control 100% 93% 140 128 27% ∆ = 28% Impact on Level of 100 Client of 50% 33% Agency 100 Choice Commitment Rating2 (indexed)1 33% 60 0% With Low Client of Choice With High Client of Choice Providing Feedback Providing Staffing and Using Staffing and Using Openness to Risk Openness to Risk Total Impact Total Impact on Ratings Ratings Feedback and and Recognition Agency Resources Agency Resources and Innovation Innovation Client of Choice Recognition Effectively Effectively Ratings 1Impact represents average effect on Agency Commitment components resulting from a move from poor to good agency ratings of the client as a Client of Choice. Results control for geography, industry, business model, and agency characteristics 2Impact represents the total effect on Client of Choice ratings resulting from a move from poor to good agency ratings of the client on each driver. Results control for geography, industry, business model, and agency characteristics 5 Source: Advertising and Marketing Communications Roundtable research; Aprais, Ltd., London, UK. Drivers of Client of Choice: F ull Results* Key Finding: Providing good feedback and recognition, and using agency resources effectively are the best ways to become a client of choice. Client of Choice Drivers Shaded Bars are Statistically Significant 45.0% Client Characteristics Agency Quality +33.0% +32.7% +26.5% +26.2% Impact on Client of Choice 20.0% +17.2% +8.4% +5.1% -1.1% -5.0% Client Provides Client Staffs Client is Open to Client Treats Client has good Client considers Client Provides Overall Agency Feedback and Appropriately and Risk and Agency Like a day-to-day advertising vital Clear and Quality Recognition Uses Agency Innovation Strategic Thought management for business Consistent Resources Partner success Direction *Results are additive. Effectively 6 6FOR MORE INFORMATION CONTACT: Joni Renick Tony Geary Corporate Executive Board APRAIS Ltd +1 571-303-4074 +44 20 7748 6101 email@example.com firstname.lastname@example.org page 2/3
PRESS RELEASEAbout APRAIS (www.aprais.com)APRAIS is the global leader in advertising performance evaluation, improvement and remuneration.Based on proprietary technology tools, APRAIS is able to manage and assess the perception of therelationship between advertisers and their marketing communications agencies; to provide actualmeasures of relationship performance. Working side by side with both companies and agencies,these ‘soft data’ performance scores are tracked over time and can be incorporated, along with othermeasures, into PBR (Payment By Results) calculations.APRAIS is unique in that it has built a database of over 4,000 agency-client relationships in 42countries, involving 300 agencies, 200 clients and over 10 million individual questions answered.This has enabled APRAIS to create “Agency Performance Benchmarks” against which companiescan better understand and improve their relationships, maximizing both real and emotional ROI frommarketing communications.Founded in 2000 and headquartered in London, UK, APRAIS is an independent organisation thathas offices across Europe, North America, Latin America, Asia and the Middle East and Africa. With anetwork of 19 offices and 33 senior personnel worldwide, APRAIS works with local and internationalclients and agencies across a variety of industry sectors.APRAIS evaluates relationships every 6 months, using a 360º appraisal process and a proprietary on-line tool for collecting and analysing data at various levels.The parties are helped to understand the dynamics of their relationships, action plans – short-term andlong-term can be drawn up, providing guidance to both parties to enhance the relationship further.APRAIS is available for all marketing communications relationships including: · Above the Line · Media Planning & Buying · Public Relations · Sponsorship · CRM / Direct Marketing · Digital · Market Research · Packaging Design About the Advertising and Marketing Communications Roundtable(www.amcr.executiveboard.com)The Advertising and Marketing Communications Roundtable provides insightful and action-oriented best practices research, data, networking, executive education, benchmarking tools, anddecision-support services to a global network of over 300 heads of advertising, marketing andbrand communications, and marketing services at leading companies. Drawing on the power of theCorporate Executive Board’s cross-functional network from around the executive suite, the Roundtablefocuses on topics that are most critical for advertising and MarComm executives: integrated marketingcommunications, interactive/digital media, agency management, sponsorships, and brand andconsumer communications.About the Corporate Executive BoardThe Corporate Executive Board (NASDAQ: EXBD) provides analysis and authoritative guidance to theworld’s most successful organizations. With a member network of over 80% of the Fortune 500, theCorporate Executive Board delivers indispensable resources for timely decision-making on all issuesrelated to strategy, operations and general management. For more information, visit www.exbd.com. Page 3/3