Case Study:
Tech COmpany
THE SITUATION
The client came to RightSpend because:
- Their historical MSAs were “fixed bid” and non-marketing centric.
- They had little-to-no transparency into their agency rates or compensation.
- They were using an internally developed rates database which did not represent fair market benchmarks.
- There was a lack of defined terms, allowing agencies to develop fees in a variety of ways.
- Long term agency relationships had never been re-pitched or reviewed, making it difficult to determine appropriate “should cost” for scoped services.
THE ACTION
RightSpend’s system and industry knowledge was utilised to:- Assess the top 8 agencies – representing $35-40m total annual spend (as a starting point)
- Implement a new standard for agency MSA language.
- Align to best practices across all future scopes of work.
- Deliver extensive training for all internal stakeholders to bring consistency to their marketing procurement.
THE RESULTS
The client was able to realise:
- $5.9M (~15%) identified in potential savings immediately
- An empowered and informed Marketing Procurement team
- Optimised compensation methodologies
- Clarity on maximising agency negotiations
- Agency expectations were reset and communicated
- Mandatory agency compensation transparency moving forward
