Assessing and Managing The Agency Relationship Between A Supplier and Client

I am frequently asked by exhibit and event companies how they can strengthen and retain their customer relationships and reduce turnover. Even though agency relationship evaluation is not yet common in the events industry, measuring the effectiveness and strength of this relationship can lead to better results, lower costs and long term, mutually beneficial partnerships.

The relationship between a client and their event marketing agency has a lot to do with the level of results obtained as well as the ease, effectiveness and cost of obtaining them. Thus, evaluating agency relationships is common practice in the advertising and PR worlds. Applying a similar methodology to event marketing agencies provides a good basis for evaluation of the working relationship.

There are two types of variables that serve as agency evaluation metrics:

1. Performance Variables

These variables include such considerations as overall effectiveness, production, financial management, creative, etc. The client is asked to evaluate their agency on those aspects of support using a suggested rating scale. The client is also asked to provide an explanation of each variable as the basis for discussion and improvement.

2. Values Variables

Common values are essential to a good relationship. Value variables include elements such as the agency’s discipline (how strong are they in meeting deadlines, being present at meetings, etc.) and their resourcefulness (do they think strategically for example?). Another example might be shared responsibility. The client is also asked to rate the value variables on a similar scale and provide an explanation of each variable as the basis for discussion and improvement.

Once the variables have been established, it is essential to implement the agency evaluation as part of the overall event marketing measurement program. Relationship measurement should be supplemental to measurement of accomplishments and results. If results are less than satisfactory, the immediate focus should be on identifying and correcting factors that will produce better results from the next event. Sometimes immediate performance issues degrade into ad-hoc evaluation of the relationship, neither solving the immediate problem nor objectively diagnosing the relationship issues. If relationship measurement is structured and scheduled as a regular activity, for example quarterly, this tendency is reduced.

On a more advanced level, evaluations are completed by the agency as well, providing analysis of both sides of the relationship. Relationship variables with the largest rating gaps reveal the likely causes behind problems or friction among the team members. Changes are made that alleviate problems and progress is tracked by reporting improvement from period to period.

Although agency evaluation may be new to our world, it should be given strong consideration as an aid to increased customer satisfaction, lower turnover and greater job satisfaction for everyone. We are working on bringing this capability to the events industry. Please comment and let us know your thoughts or suggest elements of performance and values that apply to event marketing agency relationships.

For more information or to discuss this concept as a means to improve your Event Marketing program, please contact us at +1 (770) 391-0015 or heatherdeloach@constellationcc.com.

Fear of Negative PR Not the Only Reason for Budget Cuts

An exhibit manager chimed in on a message board recently, to remind us that the perception that shows and events are frivolous or the potential for negative PR exposure are not the only reasons events are cancelled or cut back. "... certainly not because we see the shows as unnecessary, a luxury or some trumped up PR stunt to try and present an image of a socially-conscious corporate citizen - it is simply self-preservation. Significant cuts are necessary to keep many companies in business. The marketing budget is an easy target for quick money - it's a lot harder to carve money out of production if you are already a lean, efficient organization with good strategic sourcing and operations practices in place. It is sad that this has to become politicized. Nothing should be read into the practice of cutting back trade show marketing other than it is simply one of many tools corporations are using to try and get through this recession."

Her response raises the question again, why cut marketing when things are down?

Profit often comes from serving the existing customer base. New revenue is often expensive to obtain and expensive to support, partially answering the question "why do companies cut sales and marketing budgets during an economic downturn?" Leaning out the organization as Karen has indicated and keeping the revenue streams you already have is a common approach.

Many companies are shifting weight to Customer Relationship Management at events in which they continue to participate, aka "putting their arms around their existing customers." Keeping the business you have safe from price attacks by starving competitors, offering solutions to existing customers that help you both mutually deal with the economy, and making sure that you get any additional business that is to be had from your current accounts are productive goals for events in the near term. Scheduled meetings with top accounts, where you offer real support and solutions for weathering the storm are a wise investment of time and resources.

So, if you are still counting leads as a major part of your event measurement, count meetings with high value accounts at least equally in your measure of success.