Publicis Groupe is putting its $4 billion acquisition of data-marketing firm Epsilon to use through a new offering it’s calling The Pact, that offers clients a 100 percent refund should it fail to deliver on specific business outcomes.
The Pact applies to only small-to-medium sized businesses, which Publicis CEO Arthur Sadoun describes as companies earning between $10 million and $1 billion in revenue. Clients using the program tell Publicis what key performance indicators — or KPIs — they’re seeking, such as a specific increase in sales, a particular coupon redemption rate or new customer acquisition target.
If Publicis fails to deliver on 100 percent of the agreed-upon KPI, then the client will receive a full refund, according to Sadoun. “If it doesn’t work we will give the money back — it’s that simple,” says Sadoun. “There is a lot of science behind this, otherwise we wouldn't be so bold.”
There are some caveats. Clients must spend at least $75,000 in advertising over the course of three months. And results are committed to be delivered at the end of a campaign, with measurement milestones in between.
Sadoun says the holding company was initially going to debut The Pact at some point in the near future, but accelerated its rollout following the novel coronavirus pandemic. Small-to-medium sized businesses “are facing an almost impossible equation,” Sadoun says. “They are cutting costs and they have no alternative to invest for what will now be the new normal.”