The intangible value of PR will always work against agencies when faced with the cold hard facts of a company balance sheet. While we all know and understand the value of our work in terms of generating awareness and brand equity, the essence of what we do is create credibility. And, as credibility is ultimately about perceptions - which doesn't have a standard measure or calculation - more and more PR agencies are coming under increasing pressure to “justify” what they do. This makes managing client expectations critical.
While the role of PR is being recognised by more companies, many still demand “results” in terms of their bottom line. An editorial piece that gets published, for example, is expected to translate into instant sales or, at the very least, customer enquiries. Companies don't realise that these will probably happen as a result - when the company comes to be perceived as credible and one that consumers trust and would like to be associated with.
Consumer trust is a huge commodity - and has to be acquired as opposed to “bought”. Because the media is perceived to be both impartial and objective, consumers are guided by media views and opinions in terms of where to place their trust - and who to trust. This trust translates into loyalty; where your increased sales and customer enquiries eventually come in.
Needless to say, building trust is a process. It cannot be achieved through one radio interview or well-placed feature, but rather has to be sustainably built over time. This means that when you're standing before the board of directors justifying your monthly retainer, you need to emphasise that it's a critical part of long-term strategy and therefore wasted if done in fits and starts. It also means that you need explain the role of PR and your function long before you end up standing in front of the board - and that in these trying times, you need to reiterate these points regularly at your client meetings.
When it comes to your clients cutting costs then, my advice is to have the “credibility conversation” with them rather sooner than later. In this way you'll demonstrate the real value of what you do, and show them the opportunity inherent in tough times like these - when consumers are fussier than ever with their disposable income. By creating credibility you generate trust which translates into an affinity for your client's company and its products which ultimately equals sales - a winning equation in both PR and accountant speak!
