The Australian and New Zealand economies have presented cost-of-living and cost-of-production challenges in the post-Covid chapter. Such challenges manifest in reducing waste and cost and ensuring optimal return on all investments.
Outsourcing retail marketing and adjacent value chain activities to drive more sales is less about a linear cost saving and more about reducing waste and ensuring optimal return on investment (ROI). Aside from obvious cashflow squeezes, if the ROI is right in percentage and dollar terms, investing could be exponential, especially if the timing is right, as the economy picks up.
If reducing cost is the short-term driver alone, there needs to be an ongoing future efficiency/effectiveness program to ensure that the initial outsourcing is a one year wonder for the profit and loss.
Agencies that demonstrate (not just say) the following competencies and traits are the right partners to optimise the current and impending economic climate, as well as offering a sustained, improved ROI year on year.
People: Who needs them?
The other external impact facing all organisations with a scale field activation resource is the IR legislative changes, which, while being reinforced, have also toughened their breach penalties. Outsource this challenge to the experts who navigate the implementation of people legislation, especially in the field, on an hourly basis.
Furthermore, retail marketing in an outsourced environment can be a strong career choice for the budding FMCG star. Exposure to a broad range of retail trading channels and, even more, countless brand categories is a key attraction. The better agencies offer a range of services offer technical career experience for all.
Additionally, the most sought-after agencies drive quality training and offer positive, real employee value propositions.
Finally, the ultimate compliment to the better agencies is when the outsourced providers are a fertile talent pipeline for their clients, not concerned with reducing their own talent pool, but adding value to the client.
Timing is everything, but the current external environment and its challenges support the opportunity for outsourcing retail marketing activities. The agencies must step up, show their worth, and demonstrate their value add.
