Caroline Johnson discusses the importance of agency innovation from a client's perspective, emphasizing the need for sustainable marketing models. The podcast explores challenges in the creative industry's commercial model and advocates for agencies to elevate value by shifting towards consultancy and transparency in commercial discussions.
Agencies should prioritize strategic value creation over immediate revenue to establish trust and sustainability with clients.
Shifting towards consultative agency-client partnerships can enhance agencies' role in delivering impactful results beyond initial brief requirements.
Deep dives
Addressing the Commercial Imbalance
The current commercial models in the agency-client relationship often lead to unsustainable practices where agencies face pressures to sign contracts that may not be financially viable. This imbalance results in talent being focused more on new business rather than existing client needs. As a consequence, agencies experience burnout, compromised creativity, and a diminished focus on client service.
Shifting Towards Consultative Partnerships
Agencies and clients should move towards more consultative and advisory partnerships to elevate the value creation process beyond the initial brief. By transcending the clients' stated requirements and focusing on strategic value, agencies can enhance their role in delivering impactful results. This shift requires agencies to rethink their engagement models, positioning themselves as valued partners who contribute strategically and creatively.
Embracing Commercial Innovation
Adopting innovative commercial models is crucial for agencies to ensure value delivery while maintaining sustainable operations. Agencies must present business cases that prioritize protecting the client's value above immediate revenue considerations. By co-investing with clients and proposing commercial solutions that align with client needs, agencies can establish trust, sustainability, and integrity in their relationships.
The Path to Sustainable Transformation
Achieving sustainable transformation in the agency-client dynamic necessitates a shift towards commercial models that focus on value creation rather than price increases. Agencies should prioritize creating evidence-based business cases that highlight the strategic benefits and outcomes they offer to clients. By initiating conversations centered on client value protection, collaborative innovation, and transparent commercial practices, agencies can pave the way for impactful and lasting transformations.
The Business Model Company cofounder Caroline Johnson is 20%’s first return guest and in this episode Caroline, Blair and Leah pick up where they left off in their last conversation on business model innovation among agencies. This time they view it from the client’s perspective, exploring why agency innovation is vital for clients and for the future of marketing services itself.