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Why Transparency Is Good For Business

For years the creative services industry has shielded its eyes to account management practices. But one thing is becoming increasingly apparent - client transparency is good for business, says Marcus Leathwood...

For years the creative services industry has shielded its eyes to account management practices. But one thing is becoming increasingly apparent - client transparency is good for business, says Marcus Leathwood...

By Marcus Leathwood, Business Development Director, Maconomy

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In the ever-changing world of the creative services industry one thing is becoming increasingly apparent… client transparency is good for business. For years the industry has shielded its eyes to account management practices, however as clients are increasingly looking for more efficient agency management and greater transparency, the industry must now stand up and be counted.

As marketing departments are forced to tighten their belts, agencies are equally beginning to feel the squeeze. Under the watchful eye of procurement departments, inspiring creativity and flair must now be underpinned by excellent time and financial management processes.

A recent Profitwatch survey revealed that thirty six per cent of agency time remains unaccounted for via time capture systems. Agencies must now deliver campaigns that that not only impress the client on a creative front but are also on target with supplier and business performance metrics.

Agencies' creative finesse no longer enough

Whilst businesses may cry that procurement is threatening creativity, they must recognise the increasing importance of providing clients with an open-door policy. Agencies, as they should, are starting to be held accountable for every part of the campaign and this can only be achieved when agencies look closely at their own internal processes.

As the liaison between the client and the agency, it is imperative for account handlers to be aware of each aspect of the campaign so that they can keep clients informed for the duration – and in my experience nothing annoys a client more than confusion over budgets, billing and deadlines.

Secondly, agencies must shake of the perception that they are techno-phobes and instead be seen to recognise the benefits that technology can bring. Account administration must mature from the trusty excel spreadsheet and instead embrace technology-based solutions that offer clients a means of managing internal processes and communicating critical information.

Client reporting systems make sense

Systems tailored to meet individual client needs and deliver real-time reporting will ensure that clients get the information they want when they want it. In addition, it will help develop a relationship based on trust between client and agency – something that is missing from many client/agency marriages.

In the UK, good client/agency relationships are often the secret to the success of a long and happy marriage; alarmingly forty four per cent of businesses believe a change in client contact is the main reason why clients re-pitch their business. Efficient account management not only lengthens the life of an existing relationship, but can also form solid foundations for a new one.

Profitwatch revealed that in the quest for excellent service and value for money, it is not uncommon for clients to re-pitch their business to ensure they are getting the best from their agency, not only in terms of creativity but also tight account management. Although the procurement and marketing department may be like chalk and cheese, in new business pitches, agencies need to win over both camps if they’re serious about winning the business.

Account management systems improve relationships & profitability

As the truth rarely comes out until the client asks for a campaign evaluation, efficient account management systems will eliminate disputes over billing and schedule delays. With fifty six per cent of respondents agreeing that invoices are often queried as a result of erroneous information, agencies that demonstrate to clients how and where their money is being spent and that they are willing to work within the procurement processes, are much more likely to succeed.

Account transparency not only benefits clients but can also help agencies to tackle the problem of over-service levels. The creative services sector currently over-services accounts by fifteen per cent on average and although there is an industry wide aim to reduce this, the target figure still remains high at eight per cent. By investing in measures to control account management and manage costs, an agency can ultimately improve their own profitability.

In an increasingly competitive environment, agencies must stand out from the crowd and be viewed by their clients as a business partner rather than just a supplier. Whilst creativity remains top of the agenda, a culture that revolves around account transparency and excellent management will be beneficial to both client and agency. The creative services sector is beginning to face the ‘accountability’ issue, and by effectively aligning themselves with changing organisational needs, agencies will profit from long and happy client/agency marriages.

About the Author:
Maconomy is a global provider of industry-specific business solutions for professional services companies. Its business solutions enable organisations to optimise project and resource management, manage costs and drive profitable behaviour throughout their organisation. Marcus Leathwood, Business Development Director, has been working in the Software and Solutions industry primarily in a marketing function for the past 10 years. www.maconomy.com