Our next series of interviews in the Reconnaissance Series are with a range of agency growth consultants. We’ll be looking at the current M&A trends, the need for transformation in the agency business model, how to prepare for rapid growth and how to build IP into your agency model.
The first in the series is an interview with Caroline Johnson who heads up The Clear Partnership (part of the Business Model Co.). Caroline helps agencies to transform their agency business model to ensure what they offer is fully aligned to clients needs and challenges and over time cut away some of the more commoditised areas of their service.
For the top 50 independent marketing groups in the UK, profit margins have decreased to a historic low of 7.5% and it’s clear that the current industry model is no longer sustainable for agencies. Change can only come by focusing on driving more value on both sides, and developing business models that focus on clients’ business challenges, putting agencies and their Brands back into true commercial and strategic alignment.
Caroline's proven IP is currently helping some of the world’s leading independent and network agencies to increase the margin on their existing commercial models whilst also transitioning to a forward thinking, higher-margin model. This helps agencies to move away from selling services towards a more value-based approach.