An agency is not the most difficult company to manage. We do not have complicated processes, with many transformation steps. Overall, we sell services, i.e. time/man with salary costs + subcontracting if necessary. You will find below the indicators that we use to manage 1min30, including the gross margin which is the reference indicator in communication.
Definition of gross margin
For the AACC (Association of Communication Consulting Agencies) the definition of gross margin is as follows:
Total turnover (total invoices issued by the agency: fees, commissions and purchases re-invoiced to clients) reduced by all external purchasing costs incurred on behalf of clients
The AACC also indicates that the gross margin is the best basis ecuador mobile database for comparing the level of activity of French or foreign consulting agencies, since it only takes into account the elements of added value specific to each structure. Indeed, the gross margin of consulting agencies reflects their specific contribution, independently of the purchases made on behalf of their clients, which vary greatly depending on the type of agency or their mode of organization, depending on whether or not there is a purchase of space and depending on the country. The gross margin is the international reference for the activity of consulting agencies in communication. It allows them to be compared.
The monthly performance indicators of the 1min30 agency
Every month, we monitor the following indicators broken down into the different stages of the business:
Sales indicators
For the sale, we follow:
sales turnover and gross margin sold, only the latter really matters.
the size of the commercial pipeline, namely the amount of open opportunities.
the proposal rate won in number and value.
Production indicators
Once the service is sold, it must be produced and this is where we have worked a lot to both improve the quality of our production and the associated customer satisfaction, and better monitor what we produce monthly, knowing that invoicing is not completely in line with production, taking into account deposits, balances, etc.
We therefore apply a regular reporting system, weekly or monthly, depending on the nature of the projects, to inform the client on the progress of each project and to measure what we have produced.