Company Category: Financial Services
Challenging Problem: A regional insurance company with operations in multiple countries had various “best-of-breed” service providers in each market in the areas of digital, CRM, direct marketing and database marketing, but one global network creative agency and associated media agency across all market.
The creative and media agency had provided a proposal to align all of the business within their network promising a 20% saving in hard costs. The client wanted to ensure these costs would be delivered before they “put all their eggs in the one basket”.
Creative Solution: Undertaking a TrinityP3 Remuneration Modeling across the region, we created an “As is” model and the “To be” based on the proposal and using the past 12 months of activity as the base.
Process: Data was collected from each market and each agency and compared to the current contracts and the proposed remuneration and resource plan.
Timeline: The process took 8 weeks across 4 markets
Result and feedback: While the proposal appeared to provide the same level of servicing and resourcing and the guaranteed savings there were issues with the type of resources and the comprehensiveness of the proposal that actually made it more expensive.
There were more less experienced resources and many of the services previously under the retainer were now included in the rate card, which would effectively delivered the client an almost 30% increase in real costs in the first year.