Snapshot : Formal marketing agency evaluation is important. But, there are also many informal ways to judge whether your agency is doing a good job for you. We cover the many rules of thumb that will help you decide if your agency relationship is a dream or a dud.
One of the first lessons you are taught in marketing is that you can’t do everything yourself. Marketing covers a wide range of skills. Unless you have three brains (!), it’s impossible to be good at all of them. But what is possible is to know the range of skills your business needs. And more importantly, to know what “good” looks like in each of those skills.
Obviously, if you can’t do all the skills yourself, then you need to find other people to do them. That could mean outsourcing to contractors and freelancers for specific projects. Or to marketing agencies, for more regular and on-going work.
As we share in our guide to marketing agencies, there are many different types of marketing agency. The most common types specialise in services like market research, advertising, media planning and digital marketing. And by association, many of these agencies will provide related creative skills like copywriting, graphic design and photography.
While each of these skills are important to drive the overall success of your business, they all come with a cost. You need to pay for agency fees and implementation costs.
And with these costs, you need an evaluation process to make sure you get your money’s worth.
That’s where marketing agency evaluation comes in.
Marketing agency evaluation – formal
Bigger companies will typically have a formal marketing agency evaluation process.
They would outline this process in the contract and / or the statement of work. In some businesses, you would employ an independent consultant to set-up and manage this agency evaluation process.
This formal marketing agency evaluation would cover areas like how the agency delivered against the business goals, and how they delivered specific services.
For example, you might evaluate the agency teams on their services like strategic planning, creative delivery and account management. You can develop a set of specific criteria and “score” the agency on these. Have they met expectations or were they above or below expectations?
We’ve got more examples of such formal criteria in our marketing agency guide.
Marketing agency evaluation - informal
The formal marketing agency evaluation is a good professional way to run your business relationship with your agency. It forces open and honest conversations with the agency.
But it’s at its most effective only AFTER you’ve worked with the agency for a while. And, it takes time to decide on the criteria, gather the feedback and review the implications.
Sometime, you need to make quicker judgements about agencies though. And what about agencies you are thinking about working with, but have not yet committed to? How does marketing agency evaluation work there?
Well, we have some quicker and much more informal ‘rules of thumb’ for those situations.
You might use these when talking to a new agency. Or, for agencies that you only use on small projects or on an adhoc basis. You would not normally write these into a formal contract or formal marketing agency evaluation.
But, these principles are based on long experience of working with marketing agencies. You can use them to evaluate any type of agency.
Rules of thumb that make you question your marketing agency
Let’s start with the bad behaviours and actions. Stuff that would automatically raise a red flag. These are all very common, and where we can, we try to explain why they might occur.
But bear in mind, as the client, it’s your money that pays the agency. So, you are the one who gets to decide if you’ll accept these behaviours.
#1 They are inflexible on processes
Marketing agencies will love to tell you, you need to be more customer focussed. They’ll tell you that you need to listen to the needs of the customer, and organise your business around those needs.
But remember, that for the marketing agency, YOU are the customer. And when you ask some agencies to organise their business around your needs, you find they don’t practice what they preach.
In particular, when it comes to processes, you’ll often find marketing agencies have pre-defined internal processes. They use these to commission and deliver the work.
This lets them move their people around different clients without having to learn different ways of working. This makes life much simpler and more efficient for them.
But if your processes don’t connect well with their processes, some agencies will refuse to change the way they do things.
When agencies are inflexible on processes and can’t adapt to meet your needs, this is a bad sign.
So, for example, as we outline in our guide to advertising, clients start the advertising process with the brief. The agency should respond with their proposal on how they will respond to the brief.
But, often agencies will ask to submit a “reverse brief”. They’ll rewrite your brief to make it easier for them to work with. Your brief that you spent all that time getting just right, to be clear on what you need.
Suddenly, it’s not your brief any longer, it’s the agencies interpretation of what you need. And, it’s written so they can manage it through their business more easily.
What you’ll often find though is this reverse brief excludes things you specifically wanted to include. Or it includes things you chose to leave out.
Of course, you review these changes and keep them if they make the brief better or clearer. But if they don’t and the agency insists on keeping them in, “because that’s how we do things”, this is a definite watch-out.
#2 They are undifferentiated on process
As we’ve said, there are many agencies out there. They’ll all claim to be better or different to their competitors. But when you scrape away the surface impressions you have, you’ll often find that the inner workings of marketing agencies are very similar.
Think about it. Most agencies are full of people who worked at other marketing agencies first. It’s quite an enclosed world, where in the effort to match competitors, agencies end up replicating competitors.
That’s not so good for you, as the client.
A few years ago, we worked on a project with a business that had dozens of agencies providing different services. They’d decided to consolidate the business into one single agency that could cover most of those services together. The aim was to make the marketing more integrated. Though as one project team member said, with one agency, it also makes it easier when “there’s only one throat to choke”.
As part of the pitch, we saw the RFI (Request for Information) documentation for 11 different marketing agencies. One of the questions asked them to map out their strategic planning process. When we reviewed the responses, we found that all 11 answered the question almost identically. You could barely tell them apart.
Now, you could argue that some processes are standardised and should be similar. But you think all these smart advertising gurus who tell you, you need to be differentiated would have at least worked out a way of differentiating their own brand?
#3 They make guarantees they can’t keep
There’s a great quote in Bob Hoffman’s book Laughing at Advertising that marketing is all about probabilities, not certainties. Which makes it interesting when you hear marketing agencies talking about guaranteed ways to grow your business. When they talk about sure-fire strategies to grow your business, and 100% success rates.
Because, there’s no such thing. If 100% guaranteed success in marketing actually existed, everyone would do those things. And if everyone did those things, then no-one would win.
Every business is different. Every business has different strengths and weaknesses, different audiences, different competitors and different challenges to face.
So, you can’t guarantee that what worked for someone else will work for your business. Anyone, who is over-confident in what they can deliver, and over-promises is someone to watch out for.
Now, that’s not to say, they can’t or shouldn’t make some other sort of guarantees …
#4 They don’t make guarantees they should keep
But just because there are no sure-fire guarantees for success, there are some guarantees marketing agencies could and should make. These are what they will do to increase your probability of success.
They could and should for example be partners in achieving your business goals. When you do well, the marketing agency should benefit from their role in helping your business perform. But, if you fail to hit your goals, the marketing agency should own some part of that failure too.
For all the services the agency provides, they should make some guarantees about who in the agency will actually do the work. They should make guarantees about the quality of the work and when it will be delivered. And they should make guarantees of what they will do, if there’s something you are unhappy with.
#5 They bring the wrong people and too many people to meetings
These are the people who’ll work on your business. And that’s fine. Except, often the agency won’t really explain what everyone does. And won’t share who actually does the work on the team.
At some point when you visit an agency, you’ll be introduced to”the team”. Remember, you’re paying for everyone on the team’s time. By the hour.
An obvious example is the hours billed by agency “directors”. Especially, Executive Creative Directors. (ECDs) They’ll often do minimal work on your actual business.
But you’ll find them billing $250+/hour to “review” work that their junior designers or copywriters have done. That you’ve already paid for. Or the same amount, to turn up to a meeting where they only talk for 5 minutes.
Not just that, but agencies who turn up with masses of people in the meeting. That might make you feel like they are taking your business seriously. But, think about it. You are paying for every person in the room. And that can easily be $150 to $250+ per hour per person.
If you’ve got a bunch of people who are only there to listen and to be aware of what’s going on, you can find longer meetings racking up thousands of dollars in fees. And you have to ask yourself, are you getting that value back for your business from that meeting?
Try it, next time the agency brings a big team along. Ask them how much in sales and profit the meeting will deliver. If they get flustered, or can’t at least come up with a response, that’s a bad sign.
#6 Their attitude to your money sucks
We don’t begrudge marketing agencies having nice offices. Or, doing things to recruit, keep and motivate their staff. But remember, they way they pay for their offices, their staff and all the things they do comes from their clients.
And that’s you.
We’ve worked with many agencies who’ll take taxis everywhere. Even, if there’s good public transport. They’ll buy you coffees, take you out for lunch and have drinks in the office on a Friday afternoon.
Heck, if you’re important enough, they might take you on a “fact-finding” trip to a big event overseas.
But, all of these things, nice as they are, they’re not being generous. They’re spending your money. So, don’t be a tight-arse. But, do question your agency if their spending seems reckless.
With your marketing budget, imagine, it’s like handing over your own wallet or purse to them. Do you trust them to spend your money wisely? Because, if you don’t, that’s a bad sign.
#7 Their attitude sucks
And yes, finally sometimes, it’s that you just don’t connect with the people. When you work with marketing agencies, it’s important to build up a strong working relationship. That doesn’t mean you agree on everything. But, you trust each other’s judgement to do the best thing for both sides.
But sometimes it feels like your agency is doing the work only for their own benefit. That they don’t have your best interests in mind.
That’s the moment when you want to get out. And get out, fast.
Example : An agency whose attitude sucked
Let’s finish this section with a little story about an agency whose attitude sucked.
Once upon a time, a long time ago, working as a client, we had a website agency, who wrote content for us. We reviewed this content before it went online. But, we found that every time it was full of spelling errors and grammatical errors. Now, these things happen from time to time. But, with this agency, it happened EVERY time.
When we flagged this to them, their response was it wasn’t their responsibility. It was our content on our site, so we should correct their spelling and grammar before it got posted.
It then got worse. The agency offered to run an online event for us, that would have been the first such event in the category. But then, we received a mass mailing from them where they obviously hadn’t checked who the email was going to. It offered a similar event to all of our competitors, the day before our event was due.
Like we said, sometimes you get an agency with an attitude that sucks. We terminated that contract pretty quickly, and also found another good agency who ran the event for us. A week before the competitor event went ahead.
Which, fun though it has been to point out the faults of bad agencies, does bring us on to what we would look for in good agencies.
Rules of thumb that show your marketing agency is good
If your business is going well, there’s a good chance you have a good marketing agency supporting you.
You should be doing regular evaluations with your agency anyway. These will show how and where they are hitting your targets.
But beyond those, there are some specific outcomes and behaviours you should look for. These’ll help you work out if you’ve actually got a good marketing agency, who are worth holding onto.
If you don’t see examples of these, then it’s time to start asking questions.
#1 You (and #2 your customers) like their work
As we’ve covered before, sometimes when you meet with an agency, particularly the creative team, the meeting can feel like a car crash. When the agency doesn’t seem to get what you want. Or they’re pushing their own agenda. That’s hard work.
But sometimes, if your agency does “get it”, and they constantly produce work that you like, that makes you feel good about what they do, that’s a sign you are on to a good thing.
How smoothly your feedback conversations go, how easily you work together, how proud you feel to show others the work. Those are all signs that your agency is good.
If you haven’t started working with the agency yet, check out the work they do for other clients.
We’re big believers that the quality of an agency’s work is a reflection of how well an agency is run. The best quality work that has strong market research and insights behind it, that builds brand identity and that is commercially successful comes from well-run agencies.
#3 They make you think
The whole point of outsourcing work to a marketing agency, is that they can do things that you can’t do yourself. And as part of that, they should share how they think. And, how and where their ideas about your business come from.
This outside thinking, that makes you understand your business differently is an important part of a good marketing agency relationship.
It doesn’t mean that everything they do has to be new and original. But it does mean that everything they do has been well researched and well-thought out. It makes you think in a different way about your business.
#4 They understand how finances work
Oh, this one is actually surprisingly rare, we’ve found. But it can save so much pain in working with a marketing agency. They don’t need to be financial experts, but they should understand some key financial terms like how a profit and loss works. And, how Return on Investment works.
If your agency understands how your finances work, they can present projects and opportunities to you that fit your budgets. We’ve seen too many agencies present crazily-high budgets on projects that would never pay off.
The first e-Commerce project we ever worked on for example, our incumbent digital agency proposed it as a $600k project. This seemed high. It was more than our sales target for the first year.
So, we then spoke to another couple of agencies. And, found it was achievable for $60k. That’s 10% of what the original agency wanted to charge us. They didn’t really understand how the finances of our business worked. And that we could persuade the business to invest $60k in the opportunity, but not $600k.
#5 They put skin in the game
Which brings us on to the next sign that your marketing agency is good. If they understand your business, and your finances, then the best agencies will consider making the rewards and risks they get from working with you more closely linked to the rewards and risks of how your business performs.
So, rather than a purely flat fee for work they do for you, they might offer to defer a percentage of their fee based on the results they deliver for you.
And if they deliver above the promised results (your sales are higher), they get a bigger fee for that delivery. But, if they deliver below the promised results, they receive less of their fee.
We don’t know many agencies who do this. But a few do. And, without exception, we’ve found agencies who are willing to do this, are more deeply committed to your success. It’s in their interest to go above and beyond, because their’s a clear benefit in it for them.
And on that theme …
#6 They go above and beyond
The best way you can understand how good an agency is, is how they respond when something goes wrong. That might be something as small as a spelling mistake on the website. Or it could be a major crisis that impacts your business like a legal complaint or a product recall.
At times like these, good agencies focus on fixing the problem first, and worrying about the bill afterwards.
One of the best agencies we worked with, when we had a major crisis happen on a Friday morning, called their whole team in and worked over the weekend to have it fixed by Monday morning.
This is the sign of an agency who put their customers first. So, while you don’t want to create a crisis, ask your agency what they’d do if something bad was to happen.
#7 You trust and like them
Which brings us to the final item on our informal marketing agency evaluation list. And, that’s whether you actually trust and like them. It takes time to build up trust with an agency relationship, but if trust isn’t there, and it doesn’t seem like it’s going to come, that’s not a good sign.
But if you do trust your marketing agency, and you do like and enjoy working with them, then make the effort to keep that going. Because, it doesn’t always work out that way.
Before we jumped into the marketing coaching and consulting world, we had a lot of experience as clients, working with agencies. Check out our guide to marketing agencies to find out more. Or, contact us directly if you’ve got a specific marketing agency question we can help you with.
Handshake : Cytonn Photography on Pexels