How to measure ROI on public relations

As the year draws to a close–you’re probably trying to calculate the return on your investment in public relations.

Public relations companies have long struggled to measure the value of what they do. Some cite “awareness” or “engagement” but both are meaningless based on current metrics. Part of the problem is that they’re not selling public relations; part of the problem is that they’re selling something that is reliant on so many unknown variables – there are so many things that traditional PR agencies have no control over. The other problem is that their definition of return is based on an estimated financial value of advertising, rather than the value of the product of their labors.

I read an article recently that talked about how AVE [Advertising Value Equivalent] was outdated and suggested that a better measure of publicity activities should be gAVE [Google Advertising Value Equivalency]. It might be me, but it doesn’t sound much of an evolution – you’re still measuring an estimate of advertising equivalency based on a cost per page impression and using a value defined by a publisher – Google. The problem remains that a gAVE calculation makes assumptions: the most obvious one being whether the audience is the right one for your business but others like whether customers have a need, whether they have purchasing authority or influence in the purchase decision, or that they will be motivated to enough to reach out or click a link to a website to find more information. It also relies on the assumption [often incorrectly] that the reader or website visitor will initiate a conversation.

As entrepreneurs, we’re building businesses around a set of, hopefully validated, assumptions. We know that the problem we’re solving exists and we know who our ideal customer is. Right? So, what if, rather than trying to measure the value of public relations using an abstract like advertising equivalency we measure it on something that we already has value – relationships with the people that will help us grow successful, profitable businesses such as prospects, customers, industry luminaries, purchase influencers, advocates, journalists and investors.

We subconsciously measure relationship strength in our personal lives every day. We know if we’ve annoyed or irritated our spouse or partner, or whether a friendship is strong enough to support a disagreement. Whether we can count on somebody to help us when we need it – no matter what – or whether they’ll make promises but never follow through on them.

What if we measured the strength of our professional relationships in the same way? We could measure the strength of the relationships needed to achieve commercial goals and monitor whether our behaviors strengthened or weakened them. We could identify which relationships were necessary – and the strength of each – to achieve a specific outcome.

Try something with me now. Who are the 6 – 10 people that you need to have relationships with in order to achieve your next milestone? Write them down.

How strong do you need each of those relationships to be in order for you to achieve your desired outcome? Give each of them a rating between 0 and 10 with zero being no existing relationship and 10 meaning you have a relationship with them that you could call them today to ask for their help and they’d do whatever they could to help you.

Now use the same scale to give your relationship with each of the people on the list a value using the same scale. Zero being no relationship at all and 10 being a relationship you could bet your business on. How do they compare?

Chances are that there will be gaps – and that’s OK. It is the function of PR to help strengthen relationships where you need them to be stronger–and maintain the relationships that are where you need them to be. In many cases, to build a relationship with somebody on your list, you’ll need to build relationships with other people that can provide you with credibility, testimonials, social proof and, in some cases, introductions.

The list you have will contain the most important relationships for achieving your next milestone. Revisit and update it every time your goals change to ensure that you’re PR strategy is always focused on building and maintaining relationships with the most important 6 – 10 people for achieving that specific outcome.

Measuring public relations is easy when you know what you should be measuring – it’s all about measuring relationship strength with the people that are critical to the growth and long-term success of your business. When you’re defining the measures of success you want from for your PR activity in 2015, focus on relationship strength with named individuals and ask your PR company or your own team members about how they’ll help you achieve it.

Startup and SmallBiz PR and marketing tip: be clear on what your desired commercial outcome is before you start any public relations, marketing or publicity activity – it’ll make it far easier to measure whether you have delivered it.

This post also appeared on Launchable Magazine http://www.launchablemag.com/?page=post&title=Measuring-PR-Its-All–About-Relationships-Not-Coverage

PR & marketing killed Target in Canada

Target has just announced that its expansion in to Canada will end, with the closure of 133 stores.  Why? A fundamental failure of the company’s marketing.  Target failed to understand the market and, as a result, failed to provide the products Canadian customers wanted, at the right price and failed to promote itself correctly.

I remember my first trip to a Target south of the border in the mid 1990s. It was a revelation.  Living as I did in the UK there was nothing like Target – somewhere you could go to get almost everything at incredibly competitive prices.  Having visited Target stores in the US many times since I moved to Canada in 2010 the experience in my local Canadian store was a very different experience.

Having experienced the US stores, Canadians wanted that same combination of product choice and price that they experienced there, but the company failed to replicate it successfully in Canada. This breach of customer goodwill made Canadian customers think differently about the company.  Combine this with a lack of a clear differentiator between stores like Canadian Tire and Walmart and you have all of the ingredients for failure.

That, in my opinion, is the reason for Target’s failure in Canada.

Startup and SmallBiz PR and marketing tip: business success is based on building and maintaining solid relationships with the people that matter most to achieving it.  Don’t take your customers for granted and be prepared to stick with it for the long haul. If you change the brand experience – a combination of value proposition, core values and customer experience – then you fundamentally change the relationship you have with customers.

BlackBerry Has Lost Control

Update: An unsubstantiated rumour on May 11 2015 that Apple could be interested in acquiring all, or part, of BlackBerry caused the Waterloo-based company’s stock price to skyrocket.

Yesterday I explained that BlackBerry is facing its biggest challenge yet as it looks to turn the business around: an increasing number of people, including once loyal users, appear not to care.  Shortly before the markets closed yesterday a report surfaced claiming Samsung had approached the Waterloo-based company about a takeover.  The share price rocketed before falling back in after hours trading as the approach was denied by BlackBerry.

It’s another demonstration of a company’s future [and stock price] is in the hands of others.  The fact that the only people who appear  interested in BlackBerry are investors, looking to make a quick buck on M&A rumours, rather than a long-term recovery of the business through selling products customers – it has been reported the company is having trouble winning back corporate customers] want to buy then it reinforces the point I made in my earlier post.

The company has lost control of its own destiny.  It is at the mercy of its news agenda.  It cannot control [I would argue it is unable to define a clear brand or value proposition] its own destiny. It’s the last place a company ever wants to be and it appears not to know how to regain control.

What do you think? Do you agree or disagree?  Tell me in the comments below.

Startup and SmallBiz PR and marketing tip: whatever you do, retain control of your brand and its perception.  When a third-party has control your business is almost certainly doomed.

BlackBerry’s Biggest Problem: Nobody Cares

I’ve been talking about what I perceive are the reasons for BlackBerry’s demise in recent years.  There’s a long list from product market fit to a failure to grasp the fundamental shifts in consumer tastes; a failure to understand what its customers wanted to abysmal marketing and PR strategies.  But BlackBerry faces its biggest problem yet.  One that no company wants to find itself in.  It is almost always fatal.

*NASDAQ stock price at time of recording was $9. 40

Startup and SmallBiz PR and marketing tip:  Stay focused on the value you deliver that nobody else can and reinforce this wherever possible. When nobody cares about your company it’s over.

Blackberry iPhone Switch Deal Shows Nothing Has Changed

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BlackBerry wants you to think that it has changed.  Its Black Friday deal demonstrates it hasn’t.  It’s bad news for the Waterloo, Ontario based company and is yet another example of how the company continues to get its PR and marketing wrong – to the detriment of the company.

The company is offering iPhone users up to $550 if they switch to a Passport on of after December 1.  The chances of persuading many to ‘trade up’ is slim. iPhone users are unlikely to switch – and $550 incentives is not going to be enough to persuade those that could be swayed to give up their shiny i device.

If BlackBerry had a clear business and communications strategy designed to bring users back to its devices, it would realize that iPhone users are not their target audience. The company should, instead, be offering entrepreneurs and small businesses incentives to choose the BlackBerry passport. These are the people who will get most value from the companies devices.  They are also customers that, once captured, are likely to be long-term and loyal.

Until BlackBerry figures out who its customer is, understands the value it delivers to them, develops a long-term strategic plan to communicate this to them, and build long-term mutually beneficial relationship with them the company will continue to flounder.

Read more about BlackBerry’s Marketing and Public Relations Disaster

Startup and SmallBiz PR and marketing tip: focus on the people that value what your do, rather than chasing those that don’t.

How To Measure Success of Public Relations

Ask most PR professionals and they’ll tell you that measuring the value of public relations is hard to express.  As a result, they’ll say, it’s hard to be specific about the value they deliver.  The return on your investment is affected by so many variables it is hard to be able to give you tangible outcomes.

It’s all a lie.  Here’s how to measure the success of public relations.  It’s all in the strength of the relationships build or maintained as a result of your PR activities. We do it every day in our private lives, so why do we find it so difficult to do it in our businesses?

Think about the most important people to your business right now.  Do you have relationships with them at all?  If not, they score a zero.

Of the people you have relationships with how strong are those connections?  Would they drop everything to help you if you asked them to?  Would they willingly do everything within their power to help your business overcome its current challenge?  Will they go to bat for you if you needed them to? Will they introduce you to people within their network that may have a need for your product or service? Will they testify to your credibility or vouch for the quality of your work?

If they would then score those relationships a 10.

If they’re not a 10 then you need to figure out where on the scale they are currently.

Perhaps they’re a new connection that will help you with advice, or will provide feedback on your product development.  They might be willing to introduce you to people that are potential customers or partners, but won’t provide a reference or testimonial.  They will help if they can, but you can’t guarantee they’ll come rushing in an emergency.  Would they help if they really were your last hope? What incentive would you need to offer in order to get them to help your business if you needed them to? Do you have direct access to them? Who are the people that you rely on to give you the access you need? Do you loose access to these people without the intermediary?

Make a list of the top ten people your business needs relationships with and score them, between 0 and 10, based on these criteria.  Having benchmarked the relationships that are most important to your business achieving its next milestone you can develop a PR programme designed to build, strengthen, or maintain these relationships.

Measuring the success of your PR activities can then be tracked, based on whether these relationships strengthen, weaken or whether you are able to maintain them until you have achieved your desired outcome.  If you reevaluate each of your ten most important relationships every 30 days you can quickly see the impact that public relations is having on your business.

Startup and SmallBiz PR and marketing tip: benchmark relationship strength and build a plan to ensure you have the ones you need in place.

$BBRY, BlackBerry, Mobile, Telecommunications

BlackBerry has a death wish!

The BlackBerry Passport launches tomorrow. The question is will anybody care?

The company has, yet again, failed to build the relationships it needed to change the perception of the company, and its marketing around the launch of the new handset has been woeful. Again.

I wrote 18 months ago about my launch plan for the company’s BB10 devices and have been reflecting on what I would do differently for Passport. In reality, much of my BB10 remains unimplemented and would have give the company a better chance of success than anything I’ve seen to date.

The only thing I would change from my original plan would be the device cost. Announced yesterday, $599 dollars off contract is too much. A 50 dollar difference between the Passport and the iPhone 6 won’t persuade people to give BlackBerry another chance. Many wouldn’t switch if the price differential was $500. It’s not so much about the handset, although the Passport is an acquired style choice, but about the brand image.

There are those that have claimed, ‘market share is not BlackBerry’s game’. Some have said it’s about margin. Some who say the company is focused on Enterprise, not consumers.

So why even mention the price differential to the competitors? Why mention the comparative size of the screen? Make a clear statement that you’re focused on a different market.

Lastly, and most importantly, BlackBerry has failed to communicate these clearly via PR and marketing to build relationships and get people to take the action you want them to. BlackBerry has failed on all counts and it’s running out of runway.

I wrote almost three years ago that BlackBerry was its own worst enemy.  Nothing I’ve seen since convinces me otherwise!

Startup and SmallBiz PR and marketing tip:  Don’t get distracted by the competition. Don’t be scared to sell on differentiators. Be prepared to trade on the value you deliver in the eyes of your customers and prospects – and if that doesn’t work… it’s over.

iFail – Apple’s ‘Historic’ Announcement Will Do Untold Damage

Hyped more than any Apple event that I can remember. Dubbed a ‘Historic Announcement’ by the media. Apple’s iPhone 6/Apple Pay/Apple Watch keynote will do untold damage to the company.  Here’s why.

First, the live stream was a disaster.  I failed to stream from the start; frequently displayed the test page; had simultaneous translation that competed with Tim Cook [on an already quiet audio stream]; returned to the start…  This is not the slick, composed and seamless company with an abnormal attention-to-detail that we’ve become accustomed to.

AppleLive, iWatch, iPhone6, Public Relations, iFail
We interrupt this historic event…

Second, the announcements.  A new iPhone that had been ‘leaked’ by just about every technology publication in the last month. Apple Pay, a contactless payment application [NFC and contactless payment have both been around for more than a decade] and the much anticipated Apple Watch that, well, let’s just say, it’s not pretty and, while it has some nice design tweaks and technology, it’s not exactly historic.  None of the announcements were exactly new [remember Galaxy Gear, Pebble, Android Wear?!]

Three all of the announcements were positioned as being Apple innovations.  Apple’s credibility starts to wear a little thin on this one.  It had a six and a half minute pseudo intellectual video about the iWatch and another [shorter] video about its Activity app.

But, and here is the real problem… Apple hyped this event to the point of calling it historic.  I’ll say it again… Apple claimed the event would include a historic announcement.  While it delivered some nice products to add to its portfolio it failed to deliver anything that could realistically be considered historic.  Not even close.

It’s not the first time. Apple has, in recent years, has been expected to deliver revolutionary new products but has failed.  It’s lost ground to the competition and, given its notoriously strict and predictable release cycle looks set to lose further ground.  This is not good news for the company or its investors.  It does not bode well for future events… how long will people believe the hype? How long will the fanboys and the media supporters be prepared to continue to support a company turning out what are “me-too” products [nice ones, admittedly] but not industry leading or historic.

This could do serious long-term damage to the relationships that Apple has built over the last decade with customers around the world as part of a relentless and meticulous public relations program. Apple has built relationships with customers based on trust – and over-hyping events like it did for today’s keynote will quickly erode it. Why does this matter? It is these relationships that have resulted in hundreds of millions of sales and record share prices.  Today’s event could be the first – and a major – backward step Apple has made in the last decade – likely undermining the trust the company has built in the its claims.

Once  this process starts, it’s almost impossible to recover.

The degree to which Apple is, I’d suggest, as much a victim of the reality distortion field as its loyal customers ever were, was Tim Cook’s claim, ‘Isn’t that the best single you’ve ever heard’ as U2 played. It was alright, but not that good! Certainly not the best I’ve ever heard. I suspect I wasn’t the only one.

[…and before you accuse me of being anti-Apple, this post was written on a Mac!]

Startup and PR marketing and PR tip: when you’re streaming video make sure you have the infrastructure that scales.

Why does my content marketing suck? | THINK PR Espresso

I read a piece over the weekend called ‘Why content marketing sucks?‘ and it made me mad. The author makes the point in the piece that content marketing doesn’t suck – she just used the title to get people to read her post.

The irony is that she’s demonstrating, perfectly, the reason that most content marketing sucks. Badly.

The problem is that the action/outcome appears to be to get people to read something, rather than anything that is of value to the individual or business. A link-bait title also sets unrealistic expectations and, invariably, disappoints the reader. How do you feel when somebody wastes your time? How would you feel if somebody hooked you with a sign outside their store offering a 50% discount, only for you to find that once in the store there was no discount, it was simply a tactic to get you in the store?

How likely would you be to do business with a company that operated in that way?

Startup and SmallBiz PR and marketing tip: If you want to improve the quality and effectiveness of your content marketing don’t chase anybody that is willing to click a link. Focus on the people that are likely to become your customers and provide them with valuable content. You might find that when you ask them to take an action – whether it is to share something, buy something or tell others like them about you – they’ll be far more likely to agree.

Like this? Find 90+ other PR Espressos

 

What value media coverage? | THINK PR Espresso

The more I read in the media, the more I question the value of media coverage as a way to inform and educate audiences; as a way to start conversations and build relationships.

Startup and SmallBiz PR and marketing tip:  understand why you want media coverage and its role in delivering your desired commercial outcome.  If you don’t understand why then you shouldn’t be doing it.