Size Matters When It Comes to Picking a PR Agency

090831-SmallMediumLarge-4651Public relations agencies come in all shapes and sizes. Some are holding-company owned with offices in 50 countries or more and thousands of employees.  Others are independent and mid-sized with a handful of offices and perhaps a hundred or more workers. And of course there are scores of founder-run, single-office firms and boutique consultancies with anywhere from three to 50 staffers all working under one roof or virtually.

While all of these agency types often compete with each other for the same prized piece of business, they can be very different in their approach to new business, client service and relationship management.

For the prospect, deciding to work with a one-office firm or a large agency with an office in every major U.S. metro area can be a tricky decision as agencies have grown adept at becoming chameleon-like. For example, a smaller agency may try to present itself as bigger and more “scalable”  than they really are when pitching a potentially big client. They will bring up that they work with “partner” agencies all over the world allowing them to send your message out globally.  And a large agency may attempt to present itself as nimble and flexible (with pricing and programs) when pitching an emerging brand with limited marketing dollars.  They will bring up the fact that they have specialized teams working on smaller programs and the promise that you won’t be a small fish in a big pond.

Blah blah blah.

Ok, so perhaps there are a few instances where both the large and the small agency can get the same job done well.  But typically, this won’t be the case.  So to help you decide, here are a few guidelines to mull:

  • if yours is a global company, then hire a global agency with global branded offices. This doesn’t mean that you shouldn’t bring in a boutique for specialized work as well. But in my experience, the various global networks of independent PR agencies are better suited for project vs. ongoing work.  I’m sure there are exceptions, but it’s difficult for one agency (the AOR) to control and manage the quality of the work that another agency in another country is doing for a client.
  • if it’s important that agency principals pay close attention to your account, then hire a boutique. Even with many mid-size firms, you won’t see the firm principals very often once the contract is signed unless you insist on it or have a previous relationship.  In most cases, agency principals are too busy running the business to pay attention to client service until something goes wrong.
  • if you are an emerging brand with limited PR dollars to spend for the foreseeable future, hire a boutique or mid-size agency.  Big agencies are working hard to penetrate the emerging brands market, especially in tech, but until they figure out how to make money on small budgets it’s still largely a work in progress for them. Generally, if you’re an emerging brand, the sense of urgency and enthusiasm and attention you’ll get from a smaller firm will outshine that of a big agency (at least once the honeymoon is over).
  • if prestige and name recognition is important to your CEO, then hire the global agency so he/she can brag at the next cocktail party that his PR agency has offices in 75 countries even though the client only does business in three of them. Just remember, someone has to pay for all that overhead.
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A More Human Model for Product Storytelling

Reblogged from MarketingProfs I Kathy Klotz

by Kathy Klotz-Guest

October 16, 2013

Humans are wired for stories; we’re storytelling animals. The resurgence in storytelling, the original social medium, is an important and welcome evolution for many reasons. Memorable stories scale in a way that facts alone cannot. And a multiplier effect is critical in marketing. Finally, stories cut through the tremendous clutter—much of it lacking context and meaning—created by the never-ending content explosion. Here’s where stories pay dividends: According to a recent Stanford study, stories are remembered up to 22 times more than facts alone.

In a world of noise, the best stories win.

From Product-Centered to Story-Driven Content

The most important thing any organization can do is become a storytelling organization. That means elevating your product or service discussion to one that focuses on the human needs of your audience.

It all begins with telling the right stories about real people who use your product or service and not focusing on the product itself. Your best stories are not about your products or you. Your goal is to tell a bigger story that makes your customer the hero.

Customers are doing their own research, and they’re asking the most important question: How will your product or service make my life better? If your marketing fails to elevate the discussion to one of change for the better, you’ll never rise above the din.

Getting Started

One of my favorite models for getting started with storytelling comes from improvisation—one of the most powerful ways of co-creating stories. It’s also that classic and fun universal bed-time story model that you’ll recognize from movies. I’ve used this model as an improviser on stage and as a marketer. Recently, I used this approach in several storytelling sessions I gave at Product Camp Silicon Valley 2013.

What I love about this particular model, called the “seven-step story,” is that you can easily adapt it. This approach covers all the key elements of a story, and it works for just about every type of story a company can have: a core purpose story, product stories, origin stories, and others.

Here’s the model for product/service stories told through the lens of your customer:

Once upon a time, <customer name> was doing…

And every day, he or she did <big challenge he or she has>…

Until one day, he or she discovered <enter the solution: your product or service>…

And because of that, he or she could <benefit 1>…

And because of that, he or she could <benefit 2>…

And because of that, he or she could <benefit 3>… (You don’t need three, but three is the maximum you want. Shorter stories are more powerful.>

And every day since that day, he or she uses <your product or service> because it enables him or her to <big human need>…

Show How Customers’ Situations ‘Change’

The most important part of a story is showing how the hero/protagonist of the story changes. What can your customer do now because of your product or service that he/she could not do before? That’s story rocket fuel.

Your product or service must make your customers look good. (They are the hero; your service becomes the supportive sidekick!)

Start thinking bigger than your product by focusing on what people really want: time, freedom, success, recognition, enhanced reputation, self-reliance, stability, belonging, safety, reduced risk, acceptance, security, credibility, and so on. Think about Abraham Maslow‘s famous “Hierarchy of Needs.”

No one needs your product or service. What they need is the change that your product or service allows them to make! And you don’t have to be saving lives to claim real value. You must aim for credibility, however. Great stories are built on a foundation of truth. And if you are in need of inspiration, ask customers, “How did we make your life better?” And make it personal. The best product stories are.

Here’s a brief example applying the model to Company X:

Once upon a time, Bob, a company owner, kept numerous files in various locations.

And every day he had to update information in many places because he did not have the data in one secure place to be able to work remotely. It was a huge pain in a number of ways.

Then, one day, a friend introduced Bob to Company X’s cloud-based data services.

Because of that, Bob could securely access data anywhere, anytime wherever he was.

Because of that he was able to get more work done quickly and easily and without worrying about compromising data security.

And every day since that day, Bob’s organization uses Company X because the ability to access data “anytime anywhere” securely has reduced his risk, ensured data freedom, and freed up his time to do what does best: run his business and spend time with his family—not with his IT department.

Customers Buy Stories, Not Products

Company X delivers its service via the cloud. No one needs cloud-based services, but the cloud is how Company X delivers its value. What matters is that the product allows users to do something (bigger than the product) that they could not do before. In this case, Company X enables information freedom, simplicity, security and freed-up time.

Your product story is always about the people who use what you sell and how their lives are better. When you focus on products and features—on you, instead of your customers—you are playing a small game.

Elevate your marketing. Products come and go; a deep commitment to changing customers’ lives for the better—something bigger than any company—must be an unwavering purpose that provides meaning. That’s the change your stories must focus on if they are to resonate emotionally with your audience, be memorable, and create compelling calls to action.

That’s my story. What’s yours? Email: Kathy(at)keepingithuman(dot)com

IPO Communications Guidelines That Make Good Sense

GM-NYSE-listed-720x340It’s the dream of many public relations professionals:  land a position with a promising pre-IPO company. Take less base compensation and sacrifice weekends and holidays for the promise of mainlining a gold vein of stock options and sailing off to the Caribbean following a robust IPO and the requisite vesting period.

Ah.  If only it was that easy.

The reality is that the PR pro in a pre-IPO company has enormous pressure and responsibility to ensure that his/her organization is playing by the IPO communications rules of the road. The job can be like herding cats.  A single communications misstep can be extremely costly to the organization, and of course to communications leadership.

2013 is actually turning out to be a banner year for IPOs in the U.S.  According to the czars of IPO research at Renaissance Capital, 165 IPOs have priced so far this year — that’s a near 50 per cent increase over 2012. In addition, a whopping 208 IPOs have been filed with the SEC year-to-date, more than 75 per cent than a year ago.  And the average IPO has returned almost 30 per cent from the offer price.

Twitter, as the galaxy is aware, is expected to complete its IPO process before the end of the year, possibly by Thanksgiving. Its recent decision to fuel the IPO frenzy is having a significant and positive impact on other recent IPOs as well, like Rocket Fuel Inc. and FireEye Inc.  Their stock price has doubled since their IPOs less than one month ago.

Going public has many pluses.  Among the benefits is the opportunity to earn significantly more interest and coverage from business and financial information channels, major newspapers, business magazines, television, radio, financial and business websites, among other media outlets.

However, the benefits of enhanced publicity come with the increased responsibility of communicating appropriately, leveraging new-found media attention to support strategic business goals while playing by fair market rules and maintaining corporate transparency.

Much of this enormous responsibility falls squarely on the shoulders of the organization’s communications leadership. Remember the companies in the dot.com boom that screwed up their IPOs by inadvertently leaking confidential information that found its way to the media and then the SEC?  That’s a sure-fire for the dream to become a nightmare of epic proportions.

Here are a few guidelines for PR  pros and their pre-IPO companies that will help dreams come true:

1. Prevent official and unofficial spokespeople from telling external sources your company intends to go public. Regardless of when it’s said, it can be published during the IPO quiet period and will look like SEC rules have been violated. Instead, focus on the company’s growth story.  Talk about financing as an adjunct that facilitates growth.

2. Develop a story that describes your company’s competitive advantages and barriers to entry without industry jargon. Keep it simple and do it well in advance of the IPO as it will serve as the basis for your corporate description in the prospectus.

3. Strengthen your website. During the quiet period, your company website will speak for you to industry influencers and potential investors.

4. Stay visible.  Typically, visible IPOs price higher in the range and trade higher afterwards. Don’t focus only on the Wall Street Journal and other national publications. Industry trade publications, bloggers, industry and Wall Street analysts are also excellent visibility creators.

5. Be visible now or company attorneys may say “no” after you have filed. If you haven’t been active before the filing, it will be difficult to be active once you have filed.  Even if you have been active with the media before the filing, many attorneys will take an ultra-conservative position and still try to prevent the company from being visible.  Challenge their position by sharing the many examples of companies who got their cake and ate it.

6. Once your company has gone public, employees have no right to material information before other shareholders. Make sure your company employees understand the rules. Be prepared to circulate policies that explain how to handle material information and how to avoid insider training.

7. IPO day is the beginning, not the end, of communications. Use the remainder of your quiet period to plan your debut as a public company. Decide what your publicity stance will be on the first day of trading.

8. The first nine months of being public will prove whether you can properly forecast your future for Wall Street. It’s easier to keep your good reputation than try to rebuild it.

9. Look to bellwether companies outside your industry for best communications practices, and not only to your competitors.

10. Work with your company’s attorneys and advisers to fit your desired business strategy within regulatory rules.

11. Get your corporate legal and investor relations teams involved in social media to protect the company from violating disclosure requirements. The risks simply don’t outweigh the benefits.

Oh, and good luck.