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Does Your PR Group Help Make Sales?

March 4th, 2009 @ 5:30 am

16 Comments

Categories: Career Development, Management, Marketing, Sales Skills, Watercooler

Tags: Sales, Public Relations, Marketing, Corporate Communications, Geoffrey James

If you think of “public relations” as the way that customers perceive a company, there’s no question that good PR can grease the wheels.  But if you think about “public relations” as the group of people inside the company who are chartered to create that image with the public, I’m afraid the answer is probably that they have very little, if any impact on sales.  Please note that I’m telling you this hard truth, even though its vastly in my own interests to keep this observation to myself.

You see, as a reporter and writer, I LOVE LOVE LOVE corporate public relations.  Most of the time, they treat me like I’m some sort of star, and they work hard to convince top executives to shoot the bull with me.  They dig up information, analyst reports, and sometimes do a significant amount of legwork that makes my job easier.  They’re great!  I love ‘em.

But the truth is that, while PR folk are REALLY useful to me (in my role as a journalist), most of what PR folk do is really pretty useless from a sales perspective.  There is so much media in the world today, and so much of it is paid content anyway, that getting quoted isn’t all that big a deal.  And even if a CEO gets quoted in a major publication, it probably isn’t doing all that much to generate sales.  Sorry, but that’s the case.

There are a few companies that “get” this, big time.  Apple for one.  Reporters hate working with Apple, because their PR folks are hard-nosed and difficult to work with.  Sony’s Playstation group, same thing.  Microsoft’s xBox group, ditto.  Horrible to work with — from a reporter’s standpoint.  But they’re probably right in limiting interview only to situations where they can flog a product message.

That’s my gut feeling, anyway.   However, I could be wrong, and the companies with a more “open” PR philosophy may be right.  The problem here is measurement?  How do you measure — quantitatively and objectively — the value of being quoted in a publication?  The answer is, you can’t… unless…

Unless the publication is online.  I’m surprised that nobody has thought of this yet, but it seems to me that PR groups should require online publications, as a condition of the interview, to include a unique link in the published version of the article.  The company who granted the interview could then track the click-throughs, see how many converted into qualified leads and eventual customers.

After a year or so, the PR group would have objective, quantifiable data indicating what kind of publication made sense to work with, and which was just a waste of time.

Don’t hold your breath though.

Man, I hope none of my PR contacts ever read this…

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  •  
    1

    warmsoul

    03/04/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    Well, ...I partially disagree. I don't know if
    italian market is different but I registered
    some lead generation from PR (I still remember
    the case a prospect called our PR specialst
    whose business card was partially visible in a
    picture on the mag). For sure all paid articles
    pay back really little or nothing at all (less
    pleasant than adverts and similarly reliable to
    the reader), but being cited as role model,
    pioneer or leader is often attracting many
    suspects. Regarding measurement you can only
    base on web stats or ask (by phone, in the
    forms of websites...). Anyway, it may also be a
    particular case: that experience was in a
    relatively young and growing market, mine was
    an innovative and aggressive company and
    "suspects" did not know our product/service in
    deep. No need to say product related news (when
    they're relly news) on highly valued and
    reliable media provide warmer leads.
    Bye

  •  
    2

    frankjask

    03/04/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    Geoffrey,

    PR should start with the end in mind. For very large corporations, local PR is important as protection against adverse regulatory actions. An example, in my state there are very few pharmaceutical companies (I'm in a life science association) and very many medical device companies. The pharma companies constantly are being attacked because of the east cost "big pharma."

    The local pharma companies are small, family owned generic firms (the least evil if you will). Since we have been working community and public relations our lobbying job has become easier.

    As it relates to sales - you are exactly right. PR should be done in a manner that drives the business. Again using the life sciences as an example, in the medical device world there are people whose job it is to identify KOL's or key opinion leaders in the medical community and convince them that the new device is worthy of their use. KOL's influence the medical community through their interviews, journal publishing and because they work with other medical professionals.

  •  
    3

    frederic@...

    03/05/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    I would tend to agree as mot PR is really about shouting
    our name from the top of our lungs for anyone to hear.
    The only way I was able to get some sort of business
    benefits, and it's often anecdotal, is when we matched
    our PR effort and media focus to different levels of the
    sales cycles, to a particular target and, in some cases, to
    influence one particular deal.

    Thanks for this article.

  •  
    4

    rapwrites

    03/05/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    To say that Public Relations has no effect on sales is inaccurate. Public Relations is the discipline which looks after reputation, with the aim of earning understanding and support and influencing opinion and behavior. This extends far beyond getting quotes from the CEO published!

    In today?s world of integrated marketing, the lines between advertising, communications and public relations have become almost non-existent. For this reason it may be difficult to quantify which element of the marketing program drove sales. Public relations should be to the marketing practitioner, an integral part of the marketing mix. Advertising and sales efforts are more likely to succeed when prior public relations activity (also called MARKET EDUCATION) has created knowledge and understanding of the product or service being pedaled.

    Additionally, a company?s reputation, or the essence of how it is viewed by all of its publics, is the leading factor in its ability to achieve success. Reputation can account for a large portion of a company?s market capitalization and can be its most important long-term asset. Today with distrust of the corporate world at an all-time high, credibility is an over-riding factor in every arena. Companies are at the mercy of public constituencies. There is growing recognition of the need to foster a good reputation by developing positive relationships with various publics.

    With today?s economic environment and continued pressure on debt,cash flow and profitability, companies need people who can make a measurable difference to the bottom line. PR professionals can certainly help.
    The most effective marketing strategy encompasses a comprehensive plan that includes a communications mix of marketing tools, that should include public relations. The two work hand-in-hand to produce desired results.
    Today more savvy marketing professionals understand this. It is an especially wise business practice for public relations to work with advertising to break into a new market or to introduce a new product or service. Research for AT&T has confirmed ? not only do advertising and public relations each contribute separate benefits, the two disciplines can be even more effective if managed together. It?s a crucial tool that cuts right across the marketing mix.

    Research conducted by Jonathan Low and Pam Cohen Kalafut in their book published in 2003, ?Invisible Advantage: How Intangibles are Driving Business Performance,? overwhelmingly demonstrated that business institutional investors rely on much more than traditional economic indicators such as profit and loss. Interviews with buy-side investors, who control more than 80 percent of all stock that is purchased, pay significant attention to intangible assets such as culture, leadership, human capital, communications, brand and reputation.

    Public relations is uniquely equipped to manage these assets, setting the stage for an ever-increasing role in a variety of strategic areas beyond publicity,including sales.

  •  
    5

    PJKrupin

    03/05/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    I do publicity for lots of authors, publishing companies, inventors and experts.

    I thin PR is an essential part of what people who hope to sell need to do.

    The hard part is making sales ROI each and every time and thus tangibly justify the expense. The problem is that it simply doesn't work that way.

    You can't jumpstart a profitable business reliably using PR because you can't predict public response to the messages you put out, especially when the messages are commercial.

    You can always get some coverage.

    Thus most of the time it's more like pushing a snowball up a hill. Youi can't see the top and you just need to keep pushing.

    Now what is important to realize is that in the US, we have 300 million people who are uniformly trained to respond to media messages the same way. We laugh at the same jokes, cry at the same sad stories, and we react predictably to the same bad news and good news.

    So to the PR professional, AND to tjhe savvy company who looks to utilize a PR professional wisely, what this means is that you can develop and test your message in the microcosm of your back yard, and then once you know what sort of a action you get, you can use technology to repeat the message.

    But one thing is for certain. If the message is crap. That's what you'll get.

    And that's what a real PR person will do. He or she will focus on pulling a truly newsworthy story together and then present it to the right media.

    Too often, we create news releases filled with crap. The media do not react kindly to our pure and unadultered attempts to get them to give us free advertising and ego building self laudatory praise.

    To be successful, we need to focus on what the media needs which typically is education, entertainment, and value to their audience.

    So if you focus on helping people then you offer real advice and value added.

    When you deliver that, you can get the best professional branding coverage.

    You do that repeatedly and people will look forward to everything you say and do, and they'll buy everything you have for sale.

    That's how I work.

    Paul J. Krupin
    Direct Contact PR
    www.directcontactpr.com

  •  
    6

    cre88

    03/05/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    Yo. PR could be short for "pre", as in, before you make that sales call, has anyone ever heard of you? Don't forget the most admired B2B advertisement of all time, McGraw-Hill?s legendary ?Grumpy Old Man? says:

    I don?t know who you are.
    I don?t know your company.
    I don?t know your company?s products.
    I don?t know what your company stands for.
    I don?t know your company?s customers.
    I don?t know your company?s reputation.
    Now ? what was it you wanted to sell me?

    PR ROI is especially hard to measure because most sales people don't give PR any credit. We'll just say "You're welcome" as we stand holding the door open ....

  •  
    7

    keithsolsvig

    03/06/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    It is difficult to equate PR to sales but, it has been proven to help startup firms. A study last year stated that startup companies that conducted pr got funded 30% more than ones that did not.

  •  
    8

    Alexanderthegreatlyblessed

    03/06/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    Cre88 - Excellent. Thx.

    PJKrupin - Pls support this: "Now what is important to realize is that in the US, we have 300 million people who are uniformly trained to respond to media messages the same way. We laugh at the same jokes, cry at the same sad stories, and we react predictably to the same bad news and good news." - It's not making sense on many counts. It's too broad a generalization. "300 million", "uniformly trained to respond", "react predictably"??! Just look at the responses to this post by Geoffrey & we have a different picture.

    Rgds,
    A

  •  
    9

    Alexanderthegreatlyblessed

    03/06/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    cre88 - nice post! Points well taken!

    PJKrupin - Interesting post... Support: "Now what is important to realize is that in the US, we have 300 million people who are uniformly trained to respond to media messages the same way. We laugh at the same jokes, cry at the same sad stories, and we react predictably to the same bad news and good news." So how did you deduce "in the US, ...300 million people", "uniformly trained to respond", "we react predictably"... etc.? The responses to Geoffrey's post present a non-uniform & somewhat unpredictable response.

  •  
    10

    Geoffrey James, Sales Machine

    03/06/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    I'm going to revisit this topic in a future post, but until then I have an observation to make. The rebuttals above are far more diplomatic than the rebuttals that turn up when I take marketing (i.e. marcom) to task. And they're better reasoned through and thus FORCING me to rethink my initial premise. Although I think PR is often misdirected, I do note that PR folk are, in general, better able to "sell" their ideas than run-of-the-mill marketers. That alone is enough to make me mull the situation...is there some untapped sales talent here that could be better brought to bear?

  •  
    11

    K2Colo

    03/06/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    In terms of measurement there is usually an online "echo" for offline media coverage.

    You can trend online activity around keywords related to the story using tools like Technorati, Google Trends, Google Alerts, trackur.com.

    Now overlay that trend data with your sales and website traffic reports to see if there is any correlation between the PR and sales and website activity (preferably conversions from the traffic segment driving the new visitors).

    If there is a correlation then look at the incremental impact on sales and relate that back to your PR expense.

    Man it's a great time to be in sales/marketing/PR

  •  
    12

    axiapr

    03/06/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    I'm a Florida PR professional who specializes in media relations - working with the news media and helping national companies tell their news story (idea, product, service, company, expertise) to the news media.

    We are results focused. We've experimented with many items discussed here.

    As advertising budgets and newsrooms are shrinking, positive news media coverage about your company and its products, services and experts becomes more and more valuable, more competitive and more critical to your company's success.


    Over the years, I've collected dozens of attributed statements to the "power or PR."

    Such as...

    ?PR ? even though it is underutilized ? is extremely effective when properly leveraged.? ? Harvard Business School

    ?Seventy-one percent of business owners say their marketing dollars are best spent
    on PR.? ? Inc. Magazine

    A sale is 89 percent more likely when unpaid messages generate positive discussion in advance of such purchase. Such messages include media coverage, one type of PR, referrals and word of mouth. - attribution lost

    Nearly nine in ten (86 percent) of Americans say reading about a company in the
    news is more influential and credible than reading a company's advertising. - attribution lost

    I'd welcome any others like this to my collection or if you can help me find attribution for the last two. Please share. Thanks!

    Jason Mudd, APR
    AXIA PR :: www.axia.net

  •  
    13

    dmorabito@...

    03/09/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    This is an act, right? You're really the Howard Stearn of marketing. The shock jock of sales. The Rush Limbaugh of blogging. It took me a while, but I realize now that you don't really believe any of what you write. Hats off, though. I keep coming back. You should be on Fox.

  •  
    14

    Geoffrey James, Sales Machine

    03/09/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    Quote from dmorabito:You're really the Howard Stearn of marketing

    Actually, I'm the Laurence Sterne of Sales.

  •  
    15

    HughMRyan

    03/28/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    Our PR firm had an assignment to introduce a new product line for a leading abrasives manufacturer. There was no advertising or any other kind of marketing support deployed. As we started to generate favorable editorial coverage, the marketing chief got a call from inside sales saying, "Call off the dogs! Our inside sales reps are getting so many orders that we cannot keep up." On another product launch, with no marketing support besides PR, the product manager exceeded his annual sales goal in eight months, attributing it to PR. When we published a single article on a medical-device product, that one article produced two substantial sales. These are just three examples that spring to mind. If PR is not driving sales for your company, you don't know what doing.

  •  
    16

    HughMRyan

    03/28/09 | Report as spam

    RE: Does Your PR Group Help Make Sales?

    Our PR firm had an assignment to introduce a new product line for a leading abrasives manufacturer. There was no advertising or any other kind of marketing support deployed. As we started to generate favorable editorial coverage, the marketing chief got a call from inside sales saying, "Call off the dogs! Our inside sales reps are getting so many orders that we cannot keep up." On another product launch, with no marketing support besides PR, the product manager exceeded his annual sales goal in eight months, attributing it to PR. When we published a single article on a medical-device product, that one article produced two substantial sales. These are just three examples that spring to mind. If PR is not driving sales for your company, you don't know what doing.

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