On occasion, we get calls from in-house PR or marketing communications managers who know they need to get external support, and in the process collect information about the cost and steps needed to convince senior management to make the investment.
Convincing CEOs to truly value public relations (PR)—and strategic communications as a whole—is vital to ensure that a company communicates effectively with its stakeholders, manages its reputation and stays ahead of potential crises. Here are steps and strategies to make that happen:
Educate about PR’s role
Ensure the CEO understands that PR is not just about media relations, but about enhancing business value across a range of areas: stakeholder engagement, sales enablement, investor relations, reputation management, internal communications, crisis communication and the improved market position that comes from positive brand-building
Show ROI
Quantify the results. Whether it’s increased brand recognition in the form of media mentions in outlets that sales or marketing have identified as high impact, a rise in stock price following a key company milestone like a product launch or acquisition, or a rise in customer satisfaction and education after a PR campaign.
Connect PR with Business Goals
Illustrate how PR campaigns and strategies align with the company’s broader business objectives. Communications—and public relations as one of its key functions—is a rung (albeit a frequently overlooked one) on a ladder that includes marketing goals, sales pipelines and initiatives and top-line business outcomes.
Case studies
Provide examples of companies that benefited from effective PR, and, conversely, those that suffered due to neglecting it. Be creative in how you tell these stories—not everything needs to be a press release. There are plenty of channels through which to highlight customer successes like analyst briefings, award submissions, owned video content, co-marketed speaking engagements.
Crisis preparedness
Highlight the importance of PR in crisis situations. A single PR misstep or oversight during a crisis can lead to significant damage to a company’s reputation and, consequently, its financial health, whether in the form of share price, valuation or ability to hire top talent.
Emphasize reputation value
Emphasize the value of corporate reputation. Brand reputation has a reputation for being intangible, but there are quantifiable methods of measuring it: stock price, customer retention, social media conversations and sentiment, employee churn, NPS or referral scoring just to name a few.
Involve the C-suite in PR activities
Let CEOs meet with key journalists, attend significant PR events and identify opportunities to promote them as leaders and experts. Their firsthand experience can help them see the value.
Benchmark against competitors
Show how competitors are using PR to their advantage through channels like media relations, social media, analyst market reports like Gartner Magic Quadrant or award wins. CEOs often pay close attention to what their competitors are doing, so much so that one of the most common reasons for engaging with an agency like Red Fan is because a CEO saw what a competitor did well and got a case of FOMO.
Engage PR professionals as expert strategists, not tactical arms and legs
Encourage CEOs to engage in discussions with PR professionals, either from within the organization or outside experts, to gain a deeper understanding of how their communications approach folds into broader business strategy.
Generate a constant feedback loop
Establish regular updates between the PR team and the CEO—beyond that, between the PR team and other major business divisions, particularly sales and customer-facing employees. Regular reporting ensures that PR’s value is consistently communicated throughout the organization and used effectively across channels. Make sure the reporting is meaningful in ways that allow the CEO to share the impact with the board and others.
Customer insights
Use analytics tools to provide insights into customer segments, sentiments, market trends, language preferences for messaging, and other areas that not only show progress and value, but highlight gaps that need to be filled. CEOs will always appreciate data that can guide business strategies.
Highlight the risks
Discuss the consequences of neglecting PR—which can lead to a total lack of brand awareness among entire groups of stakeholders, leave sales without tools to effectively facilitate conversations and a lack of impact of strategic marketing initiatives and campaigns. Sometimes, understanding what can go wrong is as influential as seeing the benefits.
Adaptability and flexibility
PR isn’t a one-size-fits-all strategy. Emphasize the importance of having a flexible PR strategy that can adapt to changing business landscapes. Vet your PR agency to make the strategies and tactics they emphasize aren’t universal, and are instead customized based on your business goals, data, marketing and sales objectives.
Internal PR
Highlight the value of internal communications—it’s one of the most crucial means of hiring and retaining top talent. Happy and informed employees can be brand ambassadors, while disgruntled ones can become detractors. If left unchecked, a lack of transparency and engagement leads to mutiny.
Engage third-party advocates
Sometimes, testimonials or advocacy from external consultants, industry experts or peers can be influential. If other respected professionals—like a chief people officer who needs added communications support to effectively engage a large employee base—advocate for the value of PR, it can influence budgetary decisions.
Allocate budget based on goals
If the company’s focus for a particular period is on brand reputation or stakeholder engagement, make a case for a higher PR budget. If it’s on product launch or sales, marketing might need more. By aligning the budget with company objectives, it’s easier to justify resource allocation.
Regularly review and adjust
Periodically review PR outcomes and adjust strategies accordingly. By continually optimizing, you show that you’re serious about maximizing the value derived from every dollar spent.
Secure early buy-in
Engage with budget decision-makers early in the planning process. If you wait until budgets are nearly finalized, it might be too late to secure the resources you need.
Pilot projects
If you’re asking for a budget increase, consider proposing a pilot project or campaign to demonstrate potential results. This “proof of concept” can showcase PR’s potential return on investment.
But what about having the budget conversation with senior management?
To ensure that PR receives its fair share of the budget and is not overshadowed by—but folded into—marketing, you need to establish a clear understanding of PR’s distinct value, build a robust business case for its funding, and advocate for its importance at the executive level. Here’s how you can achieve this:
While PR and marketing often overlap, they have distinct objectives that feed into each other. Clearly define what PR covers (e.g., reputation management, media relations, crisis communications) and how it differs from marketing’s objectives (e.g., lead generation, building pipeline, product marketing).
By following these steps, you can create a compelling argument for both investing in strategic communications and balancing the budget between marketing and PR. Remember, the goal isn’t to take away from marketing, but to ensure that both functions are adequately funded to maximize their collective impact on the organization’s goals.
