How account planning holds the key…
As agencies start to feel the bite of the credit crunch, the latest industry seminar from Blue Skies seems to have been aptly timed. Liz Bielinska & Rebecca Ashley of Planning Express shared their views and secrets on ‘How account planning holds the key to thriving in an industry slowdown’.
What is Account Planning?
In a nutshell Account Planning represents the customer’s voice within the agency. Whilst stand-alone Planners are often seen as a luxury, Planning is best described as a way of thinking, rather than a specific department. Most agencies have an account handler who is naturally more drawn to big idea thinking; somebody who habitually mines information about the market and consumers. In essence they are a Planner in all but name.
In truth there is a menu of services that Planners can offer:
1. Defining the target audience - Who are they? What motivates them? What barriers are there to market?
2. The brand positioning
3. The message
4. Channel planning - Planners need a media agnostic frame of mind
5. Measurement
At one, several or all of these stages Planners can connect insights with the brand to generate ideas for Creatives, clients and media strategy.
The Current Situation and What Lies Ahead
It is impossible to avoid current news about a widespread slowdown. As consumers tighten their belts, Planners are able to plot the chain reaction of agencies’ clients being squeezed and therefore expecting more from their suppliers and the eventual effect on agencies. Whilst media spend is already being cut, clients will also be looking to get more value for their money from agencies.
As a result, agencies (like everybody else) will need to start offering more. Just as Tesco has started to compete less with Sainsbury’s and more with Aldi by offering discount brands in order to provide more value for money options to customers, agencies need to stay one step ahead of the game.
The savvy agency should therefore see the opportunity to steal a march on competitors through a combination of three responses:
1. Differentiate
Although each agency has its USPs, often these are not clearly understood by clients. Without differentiation, clients have little reason to choose an agency and by developing unique ideas or processes, Planners can provide a point of difference. Clients are now also more prepared to look nationally (and even globally) for value for money and Planners can assist in helping agencies to stand out.
2. Protect current margins
As companies are asking for more for their money, the big idea thinking from Planners can help to show how agencies are doing more for their clients (and acting strategically rather than reactively) thereby helping to justify fee income and protecting margins and bottom line.
3. Create incremental growth
As pitches become rarer, agencies need to generate extra revenue from existing clients perhaps by diversifying their offering. Planners’ wider thinking will help agencies to see existing opportunities that they are not exploiting.
Ultimately to overcome each of these challenges requires an attitudinal shift from ‘do for me’ to becoming a ‘think for me’ agency - from being a builder to becoming an architect. To do so will package up the agency’s offering to ensure it is difficult for the client to move elsewhere.
In short, next time you are working on a project think about how sometimes planners can sell in better than an Account Manger because they understand the consumer voice and add this weight to pitches/discussions. Backing up ideas/strategies with these insights also assists with internal and client buy-in and therefore reduces friction between departments.
Tags: account management, agencies, communication, marketing, planning
