PR/Communications – More Critical Now Than Ever

Keeping existing customers happy and finding new ones has always been difficult.  Today the marketplace is seeing more aggressive competitors, often “ridiculous” pricing and deteriorating service levels as competitors reduce overhead by cutting staff.  What do savvy business people do to replace customers who drop out and/or move to another competitor?  Do they roll-over and pretend it’s not happening?  Or, to put it another way, they’re asking themselves, “Do I wait for the economy to return to ‘normal’ or begin to be as aggressive as some of our competitors?”

Bill Bradley, SPIA’s PR/Communication Consultant is convinced that effective communications is part of the solution to just about any business problem even challenges as serious as we describe above.

Bill divides communications strategy and tactical execution into three areas:

1.    WHO do you want to reach?
2.    WHAT do you want to say to them?
3.    HOW do you best reach them and motivate them to respond the way you want them to respond?

To test Bill’s theory, we asked him to explain how communications can address concerns that are top of mind for business owners and executives in today’s challenging economic climate.

Q:    It’s harder than ever these days to find new customers and get add-on business from existing accounts.  How can communications can help turn things around?

A:    The first thing companies need to understand is that there are just two sources of revenue: new accounts and existing customers.  When yield from both channels slows down like it is today, your best bet is to concentrate on your existing customers.  They already know you and trust you, and gaining revenue from this source is far less expensive than the cost to obtain new accounts.  This is true regardless of the economic climate.

To sell efficiently to your current customers, put them under a microscope to learn everything you can about them (the WHO) and their purchasing history with you.  This way you’ll have some idea of what they’re dealing with – and which of your products/services they don’t have that can help them succeed (the WHAT).  Once you know “what you’re aiming at” in this approach, you can select the communications channels (the HOW) to make the business case for them to do more business with you.

Q:    Many companies feel paralyzed due to a daunting cash flow position with suppliers, customers and creditors.  How can a communications program make a difference here?

A:    I call this scenario the “cost of doing nothing.”  That’s right, even doing nothing has a cost…in this case the cost is your very business survival.  If you’re prepared to do nothing but surrender to the prevailing economic conditions and “hope” things turn around in time, then close up shop now.  Save yourself and those with whom you do business the agony of a lingering death.  No one can predict when things will turn around!  So you either commit to take steps now to be primed for growth when the economy does rebound (and it will!)…or you should just turn out the lights now and lock the door.

If you choose to be a fighter instead of a victim, you need to have a plan to address the WHO, WHAT and HOW of communications.  It’s that simple.  “Hope” is not a strategy.

Q:    There are many established small- medium-sized companies with solid reputations in an industry or geographic market that has been dominated by much larger firms.  Today, those big name companies are laying off workers in droves and the smaller firms are struggling to survive.  Where’s the “good news” to form the basis of a communications program.

A:    The good news here is that suddenly there is market share up for grabs — lots of it.  Customers and prospect of those now not-so-big companies realize they have to find another supplier.  Even if they don’t plan to buy right away, they are actively looking for a quality alternative.  Those timid SMBs struggling to survive are not going to mount much of a challenge.  It’s a golden opportunity for established SMBs with solid reputations to get their attention and laugh all the way to the bank.  All it takes is the willingness to make something happen, and some communications savvy

Q:    Advertising, trade shows and direct mail all cost money I don’t have right now.  But with everyone using the web and email marketing to reach buyers for practically nothing, it’s hard to stand out.  What’s the biggest bang for my marketing buck?

A:    It’s true that to communicate your message to your targeted audience, you either pay what can be big bucks, or you risk getting lost in the crowd of electronic “commodity” media.

There is only one exception to this rule: public relations.  PR is where you interact with the print, online and broadcast media to reach your WHO and convey your WHAT.  And as we all know, the built-in credibility and feedback mechanisms of media coverage tends to take care of the HOW.  In fact, you can’t buy editorial coverage even it you wanted to. While the Fortune 500 firms get coverage often whether they want it or not, relatively few SMBs know how to “play the PR game.”  So to me it’s clear that public relations is the most compelling, credible and cost-effective marketing channel there is.

by Bill Bradley, SPIA’s PR/Communications Consultant