Over-servicing remains the key financial challenge for Agencies
The first Agency Food Report of 2017 revealed that 58 per cent of Agencies are finding over-servicing their biggest challenge. Increasing profitability was the second biggest financial challenge for 39 per cent of Agencies surveyed.
Over-servicing and reduced profitability go hand in hand resulting in this vicious cycle of driving new business to increase profitability, which in turn is over-serviced and subsequently, becomes unprofitable.
It may be that over-servicing at your Agency is seen as investment to ensure competitiveness, and longevity of client relationships. Whatever the reason, it can always be explained away, but is this a sustainable model for your business?
If you’re aligned to the 58 per cent of our Agency Food Barometer respondents who are finding that over-servicing is their greatest financial challenge, then reviewing your processes and job monitoring systems could be a worthwhile move.
On Thursday 21st September at 12:00pm, we’ll be running a webinar that will explore the reasons as to why over-servicing remains the key financial challenge year-on year and how we can address these issues.
Click here to register.