I tend to write on Wednesdays with a good cup of coffee in hand and some good music queued up. I’m going vintage today with Neil Young’s “The Harvest.”
Lately, I’ve been reflecting on the difference between how clients and others “perceive” the value of PR vs. its actual impact on their businesses. This distinction is particularly crucial when planning for sustainability and strategic growth.
For many companies, their first engagement with PR stems from a need to support an immediate event, such as a product launch, acquisition, a funding round or a change in leadership.
That engagement is often measured by a specific set of short-term metrics like a number of stories or a single piece of coverage in a tier-one publication. You would be surprised by the number of potential clients who ask, “Can you get us in the Wall Street Journal?”
However, there are also those chief marketing officers (CMOs) who have a long game in mind. They understand the importance of a comprehensive integrated marketing and communications strategy and the long-term implications of sustained PR efforts.
This last week, while working with clients, my team and I were reminded of the importance of strategic PR partnerships in helping to win the long game.
As we navigate various client scenarios—from crisis management planning to rebranding, product launches and M&A—we remember that our engagement with clients is not just about handling tasks but truly embedding ourselves in their strategic fabric.
The Dual Nature of Value
When looking at PR, there’s a dual nature of the value we provide. There’s the tangible, direct impact of our work, such as successfully navigating a crisis or launching a product. But there’s also the perceived value as a trusted advisor that can be equally significant.
A year ago, I worked with a CEO who faced a potential loss of hundreds of millions due to a displeased client. The situation was tense, with heated email exchanges between CEOs threatening to derail a crucial deal. Stepping in, I crafted a response that not only saved the deal but also preserved and enhanced the relationship with our client.
This short, 20-minute intervention helped diffuse the conversation, altering the tone and direction of the discussion and ultimately the financial outcome. While this sort of thing wasn’t included in Red Fan’s scope of work, the CEO knew he could call upon me for help and recommendations. That relationship has been going strong for over five years now.
The Importance of Perception in Value
This incident highlights an important aspect of PR: the perceived value of our actions. Often, it is not the quantity of time we spend but the quality of our strategic input as trusted advisors that defines our worth.
In such situations, value is perceived by the significance of a well-considered word or a strategically timed action.
The Concept of Perceived Value vs. Actual Impact
Perceived value refers to the importance or worth customers or stakeholders attribute to a brand’s offerings or initiatives, which can be influenced by subjective factors such as brand reputation, media presence and marketing.
Conversely, actual impact involves tangible outcomes that directly affect a customer’s decision-making process or the company’s bottom line. These outcomes can be measured through metrics like sales growth, customer retention rates and market share.
The difference between the two can reveal what clients genuinely value vs. what they might initially perceive as important. For instance, a single, high-profile story might create a buzz that temporarily boosts perceived value. However, that value could be negated if the buzz doesn’t align with customer’s needs or expectations over a longer period.
However, a more tangible, strategic outcome might be achieved by a steady stream of PR featuring a company’s thought leaders discussing customer pain points in relation to a product’s advancements or offerings, in addition to several customer success stories.
A single story about a company or its competitor might also persuade them to judge PR for its effectiveness at that specific moment. That’s why it’s essential to communicate metrics within the broader context of an ongoing campaign.
Having a trusted advisor over the long haul offers several benefits that a few isolated results can’t replicate.
Exclusivity Equals Trust and Integrity
I grew up in an agency world in Boston and New York where integrity was valued and we didn’t take on competitive clients. I built my agency the same way because I believe our clients value knowing my team isn’t working with a direct competitor. They treasure the confidentiality and security, knowing we are focused exclusively on them.
CEOs don’t have to worry that we’re sharing their secrets with a team that’s working with their competitor.
This seems like common sense, but some agencies prioritize volume over trust. And some companies prefer to flock to agencies with clients who share their space.
We believe there is value in an exclusive environment where clients feel comfortable knowing their information is protected and ideas are not shared.
This is a value I uphold at my agency. And our clients who truly value this exclusivity stay with us for years, and bring us into growth strategy planning.
Consistency and Credibility During an IPO
Consider the scenario of a company preparing for an initial public offering (IPO). The company has invested in a PR firm, and the results are stellar: The media coverage is extensive and positive and consequently, the stock performs well post-IPO.
Blair Enns, a thought leader in marketing strategy, highlights, “In a high-stakes game like an IPO, where perceptions can drastically sway investor behavior, the real value of PR extends beyond immediate media outcomes. It’s about creating a sustained image and credibility that carries far into the company’s future.”
A Calm and Clear Voice to Navigate a Crisis
Similarly, imagine a potential crisis that threatens to damage a brand overnight. Here, the value of having the right PR partner becomes starkly apparent. With the right support, a company can navigate a crisis with minimal damage, preserving its reputation and stakeholder trust. Enns emphasizes, “In moments of crisis, the true value of a PR firm is not just in managing the present but in safeguarding the future.”
Air cover and Support for Sales
Consider a sales campaign without press coverage. The sales team has no aircover other than marketing brochures, direct mail, advertising and a website landing page—all with promotional messaging. There’s no independent or objective voice to validate your product.
By integrating PR with sales, you can amplify your sales messaging and efforts with customer comments, analyst and partner quotes and executive thought leadership.
A focused level of effort gives the sales team the added support needed year-round, rather than ad hoc PR in spurts.
I just spent time with a CMO whose CEO prefers to execute on a short burst of PR. At the same time, their competition invests in a steady drumbeat all year, leveraging various PR methods to ensure they are consistently in the limelight. Helping the CEO understand that these elements are necessary is sometimes hard for CMOs. But without it, the sales team and the company won’t get the support and air cover they need.
An Integrated Marketing and Communication Strategy
An integrated marketing and communication strategy in all of these areas ensures all marketing efforts, including PR, are cohesive and strategically aligned. Such a strategy prevents disjointed messaging and ensures all initiatives contribute to a unified brand narrative. This holistic approach not only enhances perceived value but can also drive real business outcomes by engaging customers more effectively and building long-term loyalty.
Strategic Partnerships as a Core Value Driver
As we continue to embed ourselves deeply in our clients’ strategies, handling their immediate needs and strategic challenges, it’s crucial to continually evaluate and communicate value.
Understanding and articulating this perceived and actual value is essential for PR practitioners, especially those in leadership roles like CMOs and senior VPs. It not only justifies the role of PR within the broader business strategy, but also highlights the critical nature of our expertise in times of need.
