In a move aimed at changing the way in which Nestlé’s agencies are remunerated, the company has appointed Aprais to implement a global evaluation system that will help measure and manage over 300 of its agency relationships worldwide. The appointment actually follows a comprehensive three-year trial to determine whether improved client / agency relationships really do lead to better business results.
Aprais, which is a unique on-line 360-degree evaluation system, reveals how both clients and agencies view their own and each other’s performance across key measures. The findings are then benchmarked over a period of time.
Aprais actually began working with Nestlé and its agencies in late 2000 and the stated objectives were to measure and benchmark relationship as well as understand how good are Nestlé’s agencies as well as how good is Nestlé.
Nestlé also needed a purpose-designed, very flexible system for simply calculating payment by results, which Aprais could offer in its Bonus Manager tool.
Thus, the benefits which Aprais provided were professional, comprehensive and equitable appraisal system delivered through a totally independent third party; that enables partners to measure and monitor performance, especially in a multi-agency situation. The system also is a state of the art technology, involving less set-up, completion and administrative time for both sides of each relationship; simple and easy to use.
The new agency remuneration system also offers a better management information flow for both client and agency, ability to benchmark performance worldwide, regionally or locally, by division, category, company and relationship type. There is also an ability to very simply and equitably calculate Performance Based Remuneration (PBR).
Sunil Gupta, Regional Director, South Asia, Aprais, said, “The trail results have been extremely good and having realised this, Nestlé is now running this evaluation system in Australia and New Zealand. There is a growing appreciation of the fact from Nestle that Aprais has been extremely effective since it has had so much value, it is now been applied globally. The Aprais system will thus enable both Nestlé and its communication partners to review and compare their performance across brands, geographies, categories using consistent criteria.”