With a heavy focus on generating revenue from clients and using retainers, many agencies operate with the knowledge that they will get paid whether agreed levels of activity are met or not. Fixed-term contracts can also tie clients to restrictive agreements, whereby they aren’t given the scalability they need to grow an agile business or respond to the changing marketing environments.
The internal agency focused structure involving account managers and directors, which are in essence billable sales resources, add a significant overhead to every client’s monthly invoice. These account managers typically have limited direct involvement in client deliverables.
Traditionally, outsourced B2B marketing agencies have a tendency to focus on short-term tactical campaigns aiming to maintain high levels of activity and engagement. However, these campaigns can deliver poor results due to a poorly defined value proposition, targeting the wrong prospects, producing an isolated campaign or sending out the wrong marketing message. This tick-box activity that does not generate the required results is just one of the reasons that current marketing agency models are outdated and unsustainable.
A disruption to the current marketing agency operating model is therefore long overdue.
For clients, this would mean an agency that is truly client focused, representing the best interest of clients at all times and not self interest. This would translate as a delivery and results driven marketing agency. It also requires the ability to provide valuable strategic advice that underpins tactical marketing execution to generate better quality client outcomes. Finally, this would define an agency that provides full transparency on marketing, delivery and flexibility without the use of monthly retainers.
Watch our video to find out how we, at Shaping Business, are disrupting the traditional marketing agency model.