A Sponsorship Consultancy: 15 Questions You Should Ask

In the sixth of our 'top tips' series, Andy Fry looks at what you should be considering when appointing a consultancy.  We actively welcome feedback so if we've missed an important consideration, please let us know by emailing news@sponsorship-awards.co.uk. To read our previous features, please click here

Choosing the right sponsorship consultancy could prove to be the difference between the success and failure of your overall sponsorship strategy. So don’t enter the process lightly. Here we list some questions worth considering before you choose a firm.

Are you clear about what you want to achieve with sponsorship? Consultancies vary considerably in terms of what they offer. While some are more focused on delivering brand strategies, others are more comfortable selling rights on behalf of rights owners. Some agencies are very adept at sponsorship selection and negotiation while others thrive on activation. There are agencies that have particular expertise in PR, event management, social media and so on. So even if you haven’t got a detailed plan in mind, it does make sense to go to market with some clear objectives. Consider hiring a consultancy on a preliminary basis to explore sponsorship options and then holding a pitch for the main task once you have a better idea of how sponsorship might work for your brand. Be clear whether you are looking for an ongoing partnership with a consultant or whether you want a company to do a specific job, because this may affect your final choice over which agency.

How do you start your consultancy search? It never hurts to ask around and get recommendations. Industry trade body ESA can advise,  you could look at numerous respected companies that enter the UK Sponsorship Awards on a regular basis or you could talk to Think Sponsorship about its agency register TSAR.  Trade magazine databases are also useful resources. 

Do they have relevant industry experience? Find out as much as you can before committing. Have they won major awards? If not, why not?  What other clients do they have and which pieces of the business do they look after? Make sure that consultancies aren’t claiming to represent the entire sponsorship programme on their CV when they are only responsible for one small section. Enquire about new business wins (to see if they are on a roll) and client retention levels. Have they worked with any brands for a long time and been with them through rights renewals? Ask whether they are most comfortable with sports or arts sponsorships, or do they have particular knowledge in media-related areas like AFP programming? Is their main expertise in rights negotiation, activation or research? Are they specialists in areas like education, community or charitable areas? Keep in mind that strategy and implementation are different skillsets.

Do they have a reputation for creativity and innovation? More than ever, sponsorships need to be creative if they are to stand out. Look at the creative capability within the firm and assess whether they are an ideas-led consultancy. This doesn’t mean all of the other elements are unimportant, but the ability to devise a theme that excites your entire organisation and its customer base is priceless. The same points apply to innovation. Why not see if they’ve been on the UK Sponsorship Innovations Award shortlist?

How is the firm structured? Some consultancies are part of huge global communication groups while other are independent boutique businesses. Both have their advantages. The former group tends to be better-resourced for large-scale or international campaigns. Do they lavish TLC on their clients or are they  guilty of prioritising the biggest, most valuable accounts?  With boutiques, there could be more personal attention and a willingness to think outside the box but this needs to be balanced against their ability to activate a strategy effectively. Either way, you need to choose a consultancy that fits well with your own corporate culture.

How well-resourced are they? How many people will be assigned to your brief? Will the person who impressed you at the pitch be involved in the day to day running of the sponsorship? If not, who will take up the reins and what is their track record like? Will they be working on your account in a dedicated way or is their time split across briefs? Does the consultancy have lots of key skills under one roof or is it likely to contract out key areas? If so, who to? Where are they located? Do they have support near where you are based or is it likely to be a long-distance relationship? Ask about new business wins and try to assess whether they have sufficient capacity to deal with the work they have taken on.

Is the firm financially stable? In these tough economic times, you need to be sure your consultant is financially rock solid and is not going to leave you high and dry in the middle of a programme. Ask to see the accounts and do a basic search to see if there has been any unusual activity such as director departures, recent mergers, department closures or premise movements. Better safe than sorry because you don’t want your multi-million investment in sponsorship to be derailed through some financial oversight.

What other clients do they have? Do they have clients that are similar in character to your own brand or which have similar needs? Is this likely to create friction if one client has prior access to certain assets or is perceived to have a better campaign? Alternatively, could it be a benefit if the consultancy has already proven it can work with similar brands and briefs? Whatever you do, make sure there is some exclusivity of approach and ideas and a mechanism for keeping your work protected from copying.

Is there any objective third party you can talk to? Can you get guidance and advice from a relevant third party? Maybe you can get recommendations from the company that had your sponsorship before you. Or maybe you can find another company that has dealings with the firms you are interested in.

Can you find out anything about staff satisfaction? Are staff happy and likely to stick around if you enter a 3-5 year sponsorship deal? Does the company have a good commitment to training its staff and progressing them up through the business? While it’s good to see stability at the upper end of businesses, it’s also important that younger talent with new ideas can come through. Check out the UK Sponsorship Awards for the last few years to see which consultancies have built up a reputation for bringing new talent up through the business. Try to find out how it recruits and whether it is viewed as a popular place to work.

What is the cost structure likely to be? This is an obvious question when dealing with any service provider. But make sure you get a price and are clear about what is included and what isn’t. What extra costs may be involved in addition to upfront fees. If you conduct a pitch, check everything against other firms to work out a realistic range. Keep in mind that some work will be outsourced, so be clear about the scope of the firm’s activities. If they outsource find out why they do so and who they work with. Competitive pricing is important but don’t feel that you have to drive prices down too hard because you risk harming delivery.

Do they have a passionate, dynamic, modern voice? Most consultancies have a website, so get to know the character of the business by what they say through blogs. The best websites provide a mix of industry analysis and personal insights that can go a long way towards revealing the strengths of the business. The quality of the website and its commentary on digital media will also provide a sense of whether the agency has a good grasp of the changes in consumer retail and media behaviour that are having such a big impact on the business. At a more basic level, a good website will provide a summary of the services on offer.

Are they good at writing proposals? A well-written proposal will tell you a lot about the way a consultancy operates. A good proposal will demonstrate a clear understanding of your situation and objectives, and provide an outline of approach that will be taken on the sponsorship programme. Look for how the consultancy addresses issues such as confidentiality, exclusivity, cost, availability and timelines. See if they have provided any case study materials or research to underpin their approach. There are some good ideas and observations in this link: powersponsorship.com/hire-corporate-sponsorship-consultant/

Are they active in the industry and how do you feel about that? This links back to the issue of corporate compatibility. Are you looking for a consultant that is an industry pioneer or one that keeps itself to itself? Are they the kind of agency that will want to use you as a case study in a year’s time? How does this fit with your corporate ethos? Are you worried that they will share too much information about what you do and they way you think? Or do you like the idea of industry engagement? Industry engagement can equate to a better understanding of corporate best practice and changing modus operandi in the sector.

Do you feel like you can learn from them? Over and above delivering a great sponsorship, some consultancies are also thought-leaders in the sector. Think about whether there will be some positive knowledge transfer back in the direction of your company. This could be especially valuable if sponsorship is a new discipline for your brand or if you are building a new team.

Are you a consultancy and looking to enter the Awards? Please click here for more details.  Please note that the Consultancy section is open to all sponsorship agencies notwithstanding size or nature of business. We will divide the category by size of outfit to ensure as level a playing field as possible.