Cost vs ROI: Make your agency retainer pay for itself

Lauren: So Phil, over the last 12 months, we have delivered millions of pounds in ROI for our clients, and actually, when we talk about ROI, we're talking about the value that the retainers bring, and there's a few things that we've learned, haven't we? About what that looks like for clients.

Phil: Yeah, I think that term ROI is important because it's a term, it's in our conversations every day, isn't it? And we always talk about the ROI that we're bringing rather than just ‘think about this investment in marketing as purely a cost’. I think the trap that people potentially could fall into, is to go for the cheapest option possible and see it as a cost. When in fact, saving those few hundred pounds could actually cost them many thousands of pounds in lost revenue.

Lauren: Yeah, you know what, we see that quite a lot, don't we? I mean, one of the biggest clients that we have, we've seen that they've had a return of 10 to 1, haven't they? They've had over a million pounds returned in revenue for only a hundred thousand pounds of investment. Whereas, you know, we'll look at some of our smaller clients and the value isn't as great as what it could be if they'd invested more.

Phil: Yeah, I think there's almost a threshold and if you sort of, if you penny pinch on that threshold, you almost don't get to the point where you can really deliver that great return. It's about finding that sweet spot where by you're investing enough to get traction, but actually if everything's aligned and the leads are coming in, then a handful of extra leads, with a known lead value, can really add a significant amount to the bottom line if those metrics are understood from the outset.

Lauren: Yeah, so I mean right from the outset that's what we set out to achieve, isn't it? A lead value.

Phil: Yeah, if we can work out that lead value, bring in a certain amount of leads, the cost is understood at the outset, then that 10 to 1 plus return on investment should be achievable.

Lauren: Yeah, because that's what we say, isn't it? That 5 to 1 is average, that's okay, but 10 to 1 is really what we're looking to achieve. 10 to 1 and above.

Phil: I think the other point worth making as well is we sometimes see the return, you know, the amount of business leads, you know, that we can provide for the client almost as an additional sales member of the team. You know, one where you don't have to pay recruitment fees and some of the other overheads and hassle. I can’t say that, really, can I? Associated with it.

Lauren: Well, it is hassle though, isn't it?

Phil: It can be, yeah.

Lauren: Like you’re doing the whole recruitment stuff.

Phil: I suppose overall what we've learnt is, if we can really be clear on that ROI, that we're delivering that return on investment and we don't see investment in lead generation marketing as a cost, but we focus on the ROI, then that leads us to realise that the cheapest retainer isn't always the best. It's the one that's going to deliver the most business leads and the most value to the client.

Lauren: Yeah, definitely.

Phil: I think a final point worth making, is when that agency client relationship is absolutely singing and optimum, there's a clear focus on ROI, the value to the business is being returned, you know, whatever 10 to 1, then really the added benefit is this can extend the life of the website. Because, you know, a new website project should last at least 3 years, but if the marketing retainer is really delivering that value and everything's working as it should, you know, we can extend the life of the site possibly from 3 to 5 years, so there's additional value to be gained from, you know, a really successful marketing retainer.

Lauren: Yeah great thanks, Phil.