When it comes to selecting a digital agency for marketing functions, there are three key factors an asset manager needs to consider. Do you want to achieve results that are Good, Fast, or Cheap? Turns out, you can only select two because experience shows it is not possible to achieve all three at the same time.
This concept is known as the Iron Triangle and has long served as a business standard for asset managers who decide to outsource certain work. With these options in mind, let's discuss the benefits and limitations of the various combinations.
Pick Two: Assessing the Combinations
A common combination is Fast and Cheap. This choice is often made when a company wants to see immediate results from its digital marketing projects yet has a limited budget to spend. There are two challenges with this approach. First, prospective clients are much more discerning today when making buying decisions, and marketing campaigns can’t rush their decision-making process. Second, only high-quality content has a chance of earning prospects’ attention today, and by sacrificing Good, firms have little chance of generating leads.
Another combination is Good and Cheap. Here, asset managers make the decision to sacrifice speed to achieve the other two characteristics of the Iron Triangle. Choosing this option allows firms to keep costs in line while still receiving quality work. However, the downside of this combination is that the slow speed of delivery in creating content, deploying campaigns, and assessing results may hinder the success of the firm’s marketing strategy and could lead to lower returns and being outpaced by the competition.
Lastly, asset managers can choose Good and Fast. This option yields the highest quality work and generally the best results. The Fast factor is achieved when a digital agency uses an “agile” development process. Agile is an iterative approach designed to yield value sooner than other methods. The Good factor is achieved when an agency’s staff has the specialized skills and deep experience in both digital marketing and asset management distribution.
The downside of Good and Fast is that this option will never be the lowest-cost combination. The Good and Fast model operates from the philosophy, “You get what you pay for.”
When making a decision to select a digital agency for marketing functions, the Iron Triangle must be considered. Each combination of the two out of three features has its own set of benefits and limitations. Experience has shown that Good and Fast is generally the best option for asset managers who want to generate the best long-term results from their marketing campaigns.
An agency that consistently creates the highest quality content and executes your strategies with speed in an agile environment can be a partner you count on for years to come.