We’re focusing on the procurement function to boost our agencies’ profitability and client retention. Data shows that procurement negotiates an increasing number of relationships across agencies of all sizes.
We recently surveyed procurement executives and attended the May ANA Financial Management Conference. Here are some key takeaways:
DO
- Educate: Many procurement executives are new to PR. Invest time to explain how our agencies deliver earned-first integrated solutions and the potential business outcomes of those programs.
- Use clear industry language: Ensure mutual understanding of terms like earned, fixed fee agreements, and value-based billing.
- Share updates: With your client’s approval, regularly provide meaningful project management and measurement updates.
- Invest in relationships: Regularly engage with procurement to share what’s working and not working.
DON’T
- Agree to extended payment terms: Educate clients on our business model and the necessity of payment terms within 30 days.
- Permit AI-related fee reductions: Highlight our investments in AI and added value through training sessions instead.
- Give away senior time: Emphasize the importance and value of senior talent, especially as AI takes over repetitive tasks and comms expertise and judgement become even more critical.
More insights will follow, but hopefully these steps will have an immediate positive impact.