RightSpend connects marketing, procurement and finance to deliver improved ROI through better reporting and insights.
Combined, procurement and marketing are key to adding value for companies. When sharing common goals, both are an essential element to ensuring the long-term and sustainable success of a brand and their campaigns.
The complexities and challenges that have sat between marketing and procurement are being set aside in favour of collaborative approaches and shared insights. Ensuring every step taken is one that’s in line with business needs and expectations.
For procurement, return on investment (ROI) will always be a priority. Spend has to meet targets. Savings have to ignite growth and allow for investment into opportunities to further refine spend and value.
Procurement teams need metrics that allow them to measure performance and ensure that marketing campaigns are aligned with strategy and budgets. Their goal is to get the most value from every dollar spent on agencies, campaigns, assets and channels.
As marketing and procurement collaborate to create cohesion in spend and campaigns – the real question needs to be how they can better connect their digital dots to secure Board and C-Suite approval for future budgets and spend.
Utilising their combined insights and shared value to translate into improved reporting for financial decision makers will, in turn, impact budget allocation down the line.
Unpacking the value of insights
It is certainly possible to grow marketing reach, improve campaign impacts and transform deliverables all whilst making savings on spend. And, it is possible to do so without cutting corners or pressuring agency relationships.
Whilst marketing expects ROI from its campaigns, they may not always look at the return delivered by their agency and asset spend.
With the right tools, marketing can consistently assess all areas of their budgets, identify inefficiencies and cost saving opportunities that don’t impact on performance.
These insights, shared with procurement, bring the transparency needed to better support marketing, help maximise savings, and increase reinvestment back into more of the right campaigns.
Data and insights make a significant difference to how procurement, marketing and finance connect to one another.
Assessing agency value and spend to ensure that the brand isn’t overpaying the agency, is a critical area that can make a significant difference. Often a complex process, it involves assessing how many hours agency employees actually work versus how many hours the brand is paying for versus admin and total actual hours spent on any given project or campaign.
How do you actually know if you are getting value for marketing spend?
Using benchmarking data which is assessing multiple agencies in 75 global regions and countries, allows the assessment of agency costs against specific metrics that drive improved transparency and clarity into marketing costs.
Benchmarking data gives marketing and procurement a yardstick against which they can measure costs and expectations realistically. It’s data that offers a single view into scopes of work, negotiations, quotes and pricing across numerous agencies.
It’s also an immediate snapshot of agency costs that enables instant savings to deliver improved ROI and inform decision making.
Leveraging the data to assess how marketing and procurement can ensure campaign spend is accurate and extends beyond just agency is vital. Ensuring fees charged across channels, assets, and campaigns are not inflated and are on par with local market expectations. This is particularly of value for brands that have global campaigns and require visibility into costs across different markets.
Engaging with decision makers
There is always room for improvement on spend and smart ways to deliver improved ROI. If marketing and procurement share information in a clear reporting style, then they will immediately discover any internal gaps that may be impacting on costs and return.
Further enhanced with external data specifically providing the insight needed to save money intelligently. Not by cutting corners, but by cutting unnecessary spending in all the right places.
Just think, if both teams can scrutinise marketing costs and discover room for improvement on top-line savings, they have the potential to shave millions off their expenditure, which can mean reinvestment into further marketing activity.
Considering this is just the start of how the two teams can use shared data to measure value and ROI, it’s easy to see how the right benchmarking and analytics tools will pay dividends. And it becomes clear how these insights can evidence the value of both teams are demonstrating when laid before C-Suite decision makers.
Find out how you can deliver advanced ROI for your business…