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Peel open the top of any agency, and you'll uncover a glorified
assembly line that has changed relatively little during the past 40 years. Ads
or collateral are passed in job bags from concept to execution to quality control
and then to production, aided by such tools as email, spreadsheets and even sticky
notes.
This process has numerous problems. Data collection is difficult. Changes or
approvals slow the process considerably. Worst of all, the redundant process adds
little value to clients.
As a result, agencies need to move away from their time-honored processes toward
branding systems. Branding systems have multiple advantages. They add structure
and discipline to processes. They ensure uniformity in internal and client interactions.
They institutionalize knowledge so that the wheel is not always being re-discovered.
And, most important, they establish measurement and accountability.
Without such measurement, branding's organizational role will continue to decline.
In a survey among companies from The Times 1000, only 57% of finance directors
- the people who ultimately write the cheques to agencies -- believed marketing
investments helped long-term corporate growth; 27% believed that marketing was
only a short-term tactical measure; and 32% said marketing was the first budget
they would cut in hard times (such a surprise).
The first type of branding system is strategic. These consist
of scorecards, which involve a matrix of interrelated goals, activities and measurements,
and the well-known Six Sigma, which seeks to reduce defects through measurement
and the elimination of variability. Not only will these strategic systems help
agencies reduce redundancies and improve both profitability and accountability,
they also represent an important value-add to clients. Unless agencies incorporate
strategic systemic skills into their offerings, they will undoubtedly find their
strategic role usurped by the top accounting firms and other consultancies.
The second type is tactical. Marketing performance management (MPM) systems automate
the routine - but still critical - activities that form the backbone of branding
execution. Lead management systems track a lead from prospect to customer acquisition;
campaign management systems manage acquisition segmentation and/or customer communications;
and resource management software helps ensure that jobs get out the door on time
and on budget.
These MPM - also known as Enterprise Marketing Management (EMM) -- systems
not only ensure that agencies run more efficiently but also help meet the increasing
CEO and CFO demand for branding accountability. The CMO (Chief Marketing Officer)
Council studied MPM and concluded that "companies with a formal comprehensive
MPM system significantly outperformed companies that had not even entered the
consideration phase, with mean performance ratings 29%, 32% and 37% better in
relation to sales growth, market share and profitability.
Generally the
greater the adoption of MPM, the more satisfied the CEO".
Traditionally, lead management has been a responsibility of sales. But increasingly,
that role is being handled by marketing in measurement-conscious companies. Lead
management software can track how many leads marketing is actually delivering,
including where they come from, how they get handed off to sales and whether or
not they lead to business. Campaign management systems can simplify the onerous
task of media planning and placement, but are most commonly used today for targeted
email campaigns.
For agencies, the fastest growing segment is resource management software.
These increase productivity by recreating job-bags electronically in a secure
online environment. Agency personnel - and clients - access the job bag to check
progress, outline next steps and issue instructions and sign-offs. Resource management
software also provides process and design templates, helping to ensure brand consistency
across an enterprise. And such software considerably simplifies billing.
Traditionally, the fragmentation of the agency business and the complexity
of the processes has meant that agencies have considered themselves automated
if they have email. But such ad hoc tools are no longer enough when branding investments
are receiving greater hard-nosed scrutiny. To avoid commoditization of their offerings,
agencies and internal departments must look closely at strategic and tactical
systems to demonstrate tangible business value, cost-justify investments, calculate
ROI, better allocate resources and demonstrate improvements in profitability.
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