FINANCIAL OPTIMIZATION

Historically, when marketers thought about optimizing their marketing communications spending they would focus their attention on paid media and production, re-negotiating rates and costs to extract savings. As the marketing communications world has changed, so too has the opportunity to find efficiencies in the overall marketing communications model. Pile and Company’s Financial Optimization offering includes Agency Base and Incentive Compensation Development and Contract Review and Development.

Agency Compensation

Base Models – New and Existing Relationships

For new agency relationships Pile and Company Financial Consultants utilize client data, the Pile benchmarks and best practices understanding to recommend compensation models and amounts that align with client objectives and the proposed scope of work. Compensation analysis involving existing agencies includes a detailed review of staffing plans, prior and projected scopes of work, agency performance, and direct/indirect/overhead/profit models against industry against Pile proprietary benchmarks. The compensation recommendation for both new and existing agencies is provided in a form that can be easily incorporated into a standard or existing contract.

Incentive Models – New and Existing Relationships

For new agency relationships Pile and Company Financial Consultants work with the client team to craft Incentive Compensation formulas that align with measurable business and brand objectives and ideally tie into the Agency Performance Evaluation methodology. Existing agency incentive models are reviewed on an annual basis, assessed and modified as necessary.

Contracts

Contract Development – New Agency Relationships

Pile and Company Financial Consultants work with the client team and their legal department to develop comprehensive contracts that conform to industry standards. Contract elements include specific language regarding terms and termination, responsibilities, rights in data and confidentiality, indemnification, billing practices, Agency Performance Evaluation, etc.

Contract Review and Modification – Existing Agency Relationships

Pile and Company Financial Consultants conduct a comprehensive review of the existing agency contracts and provide specific recommendations regarding opportunities to minimize client liability and/or risk.

Multi-Agency Contract Standardization

Pile and Company Financial Consultants conduct a comprehensive review of all existing agency contracts and provide specific recommendations regarding opportunities to standardize terms and conditions against industry benchmarks and across agency relationships.

For more information on our Financial Optimization Services, please contact us.