Showing posts with label Business Value. Show all posts
Showing posts with label Business Value. Show all posts

Wednesday, March 6, 2013

‘Going Rogue’ Again? Keeping Client Communications In Check


With a title like the above, you might think we’ve returned to the days of Sarah Palin’s memoir, Going Rogue: An American Life. 

But this time I’m not talking about a “mavericky” Alaskan -- who, along with a very talented PR machine, masterminded a brilliant and profitable 15 minutes of fame. I’m talking about the client-PR agency relationship and how, despite living in an age of instant communication, some maverick-prone clients fail to keep their PR agencies abreast of what they are planning to say, how they plan to say it, which media outlets they’re talking to and who’s writing what. It’s as if we’re being undervalued -- a topic I discussed in a recent blog, Proving PR’s Business Value Easier Said than Done, But Not Impossible.

A recent AdAge article also addresses this growing advertising agency concern, citing data from The Bedford Group that finds the average client-agency relationship length has fallen to under 3 years versus 7.2 years in 1984 -- a drop of almost 60% over three decades.

What has changed and why is this happening?

Even my agency has not been immune to so-called rogue clients. A press release gets drafted without our knowledge. A media interview is conducted without our review and the client is caught off guard. Each scenario is a potential PR minefield.

Notice in the preceding paragraph that I was very selective in my language, as all PR execs should be. At no point did I say “without our consent” or “without our green light” -- and I think that’s the problem right there. Turf wars between agency management/oversight and client control. Considering that client-agency relationship lengths are so short, we must do everything in our power not to step on clients’ toes, or we may be perceived as know-it-alls.

Trust me, we’re not. And in the power struggle that communications can become, clients have the final say.

That said, there is a reason why we call the client-agency arrangement a relationship and not a doctor-patient review. Clients come to us for creative ways to improve their brand, not reinvent it. They’re not sick. They’re not dying. Agencies are integral to this team effort. And that collaboration, as I addressed in another blog, begins with thinking about clients less as machine-like conglomerates, and more like individuals with communication needs that must be met, not serviced.

So what we have here are two partners failing to communicate -- one that is perceived to be micromanaging (the agency) and one that’s looking to preserve its own voice. As AdAge rightly points out, technology ironically hampers our communication efforts as excessive emails and meetings trump genuine correspondence and conversations, watering down the quality of our time together.

And since this article began with a political reference, I’ll begin my wrap-up like this: agencies and the clients they represent need to press the “reset button,” remembering to be transparent about what each side plans to do and when they plan to do it, within reason. It’s a building block of trust and mutual respect. PR agencies are there to help, not hurt. And we can only do that when clients are honest with us and we are aware of their intentions. Likewise, agencies must involve their clients actively in the communications and PR outreach process.

Of course, this advice won’t stop all instances of going rogue, nor will it consign the occurrence solely to our industry. Sometimes, for very deliberate reasons, clients employ elements of surprise to their communications advantage, keeping everyone but their innermost circle in the dark. The recent shocking resignation of Pope Benedict XVI demonstrates that even inner, inner circles aren’t always privy to the thoughts of one individual.

In most cases, as seems to be the case with Alaska’s former governor, going rogue helps no one, not even the so-called “maverick.” Fittingly, like the drop in client-agency relationship length, Palin’s Amazon book price has fallen 60% too.

Does your agency have a going rogue problem? Inspired by the data gathered from The Bedford Group, I’d like to begin collating my own research on the client-agency “going rogue” phenomenon and report our findings in a follow-up article. Beyond the suggestions I have offered, how does your agency address the problem? Are there examples of a contentious client-agency relationship being healed by an attitude adjustment? Any particularly jarring “rogue moment” that caused your agency to put its foot down and change communications course? Lastly, like a heart attack, are there any warning signs that rogue has arrived? I would love to hear about your experiences with clients “going rogue.” 

This article originally appeared on Marketing Daily on 03/06/13. 

Tuesday, February 12, 2013

Tuesday’s PR Lesson: Flood Your Clients with Facts and Figures

I love it when a progression of news stories works out like this... Yesterday, I posted a blog about how PR companies can learn to speak the economic and business language of their clients, adding to their marketing skill sets. My advice boiled down to this: become your enemy. Or, in Star Wars geek-speak, PR execs must learn to use “the force” to understand the mindset of their number-crunching counterparts, essentially getting inside their heads.

I also suggested the recruitment of business-background employees, expanded roles for in-house accounting departments and the taking of free online economic courses which have gained not only popularity of late but also legitimacy as quality teaching vehicles.

But there are other ways to demonstrate PR’s worth. It’s time for a little bragging so get out your batons.

Today, while traditional newsrooms have atrophied, PR has helped blur the lines between paid media, earned media and owned media. According to the latest estimates, the ratio of public relations professionals to journalists has increased from 1.2:1 (in the 1980s) to upward of 4:1 in 2010. Meanwhile, The Holmes Report, which ranks PR firms, estimates global PR revenues at $10 billion per year and Veronis Suhler Stevenson, a media investment group, predicted US PR spending would rise 8.3% in 2012 to $4.2 billion. Between 1997 and 2007 average agency salaries went from $38,735 to $50,499. Clearly we’re doing something right.

Then there’s recent acquisitions news with AdAge reporting that PR buys are “red hot” this year.  While AdAge was quick to point out that some of the recent buying frenzy was spurred by expected tax code changes, it reaffirmed that much of the interest lay in advertisers and marketers realizing the value of what PR companies bring to the table.

Phil Palazzo, founder and president of mergers-and-acquisitions consulting firm Palazzo Investment Bankers sized contemporary PR up like this: “PR agencies have become very adept at delivering strategic and targeted solutions over multiple channels – varying from experiential to crisis to social media to events – and for that reason they've been capturing a growing share of marketing dollars." 

Go us!

Of course, industry snapshots, in isolation, do little to convince a potential client of your agency’s worth. But whether it’s drafting that initial proposal, the weekly phone call, or the periodic visit to client headquarters, infusing your written and spoken narrative with these industry facts, can’t be a bad thing. There is a reason why pack mentality works. If everyone is choosing PR firms, why aren’t you, goes the implied subtext. The next step is placing what your individual firm does in the context of this macro-industry data.

It may astound some clients, but PR communications have been around since the days of classical antiquity. And if you go back further, information management and agenda-focused storytelling have been central to businesses for as long as business has existed.

So, the next time you find yourself on that unpleasant client call (admit it, they do happen) take some inspiration from this blog and flood ‘em with facts and figures, remind your clients that PR’s worth is often a lot more than what industry metrics state and prove to them why their business cannot live without yours.

Monday, February 11, 2013

Proving PR’s Business Value Easier Said than Done, But Not Impossible

Here we go kicking off another week full of media pitching, content marketing, social business and thought leadership strategies, pitching for new business and, most importantly, keeping ThinkInk clients very happy. How do we do that?  It’s not easy but we start by demonstrating and creating value in everything we do.  Why do it otherwise?

So this week’s theme is all about value – what we create for our clients and ourselves.  We’d love to get your views on demonstrating value to your clients, whether or not you’re in PR.  What are the biggest hurdles you face? And your advice to others?

Please share your comments below.

“To know your enemy you must become your enemy” – Sun Tzu, The Art of War, ancient Chinese military treatise

The above quote might sound a little harsh, especially as it relates to public relations and determining its business value, but this is essentially what Kristin Jones, CEO of Wallop! OnDemand, suggests in a recent post on Bulldog Reporter article without directly saying it.

Jones argues that in order for PR execs and their companies to maximize their value to clients, they must begin thinking like them. In fact, not just think like them, but propose solutions and pitches that demonstrate an ability to act like them too. While clients certainly aren’t the enemy of PR companies, sometimes the economics-based and direct dollar value language they speak is so foreign to communications industry pros (who know more about marketing campaigns, crisis management and the sometimes-fuzzy ad value math) that those aspects of a client’s business can feel adversarial. The result is a PR team reduced to second- or third-place status rather than being an integral component to boardroom “elites” or partners.

Jones recommends the following steps to counter this problem:
·         Educate yourself on the economics behind value
·         Make value creation your mission
·         Step out of the shadows

But after reading her article again I was left with this nagging question…. how do PR execs actually educate themselves on the economics behind value?

The answer: they must become their enemy.

Mind you, this is not an easy task. Many in the PR industry claim to have gone the communications route partly because their brains “aren’t wired for finance or business.” Let someone else crunch the numbers I’ve heard many a time. Earning an MBA might seem impractical for more senior executives, but perhaps PR agencies should begin recruiting those with business backgrounds – much in the way they’ve hired ex-journalists to help tell more compelling client stories. Another approach might be an expanded role for a PR company’s in-house accountant, an individual most likely to appreciate and understand your client’s by-the-numbers needs.

There’s also continuing education on the cheap. Coursera, founded last April, is a for-profit online educational outlet that provides free web video courses and has gained significant notoriety in the past several months, attracting some $22 million in venture capital. Courses, which include topics on economics and business strategy, (among many others) are broken up into multiple pre-recorded sessions along with quizzes and the occasional written assignment. How much or how little the student does is entirely up to them.

So perhaps PR agencies should carve out additional time for staff to make use of resources like this. It won’t raise your company’s business IQ overnight. But it could make a lasting, positive impression whose “compounded interest” – an economic term we all should know – really adds up.

And isn’t that what PR is about after all?