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Posts Tagged ‘ROI’


Public Relations for Small Businesses: Interview with Robb Deigh

August 16th, 2010 :: Monika Jansen
Robb Deigh

Robb Deigh

Robb Deigh is President of RDC Communication, a strategic communication, marketing, and public relations firm located outside of Washington, DC.  He worked in journalism and PR at PBS, AOL, Blackboard, Inc., and a large PR agency before venturing out on his own 12 years ago.  He’s the author of How Come No One Knows About Us?, as well as numerous articles for trade journals and other publications.  In the following interview with Robb, he offers suggestions on how to get a PR program in place, what mistakes to avoid, and how to track the ROI of your PR efforts.
 
What are the biggest challenges small businesses face when it comes to planning and executing public relations?

Besides the obvious—budget—there are two.  First, their language and messages might be all over the place.  I take clients through a messaging exercise that helps create a strong, solid set of messages that can then be used on their website and in presentations, print materials, and other communications.  If everyone on the team uses the messages, it is a very powerful tool. 

The second challenge is knowing how to get attention using traditional and social media.  Make a list of stories you can pitch to the media and match those stories to the right publications and appropriate reporters.  Knowing how to pitch a story is THE most important PR skill to have.  In terms of social media, small businesses need to get their messages and website in order before deciding to start a blog, use Facebook, or even publish an e-newsletter.  Make sure that before you say something to the world, you have something to say.  If you use Twitter, you know that there is a lot of jibberish out there right alongside useful information.
 
What are some easy ways for small businesses to get going with PR?

Start out by creating your organizational messages.   Get your team together and brainstorm a list of all of your company’s attributes.  Use those attributes to build 5-6 great messages that tell prospects, “Here is what we can do for you.”  Update your website with those messages, since all of your communication is designed to steer prospects there first.  Then, try some press.  If budget is tight, build your own small press list.  What do you and your audiences read?  The reporters at those publications are your targets. Get their email addresses and send them announcements when you have real news.  Put yourself in their place and call them with great story ideas about your industry.  

What should small businesses avoid doing?

Three things immediately spring to mind:

  1. Don’t assign a non-communications person in your organization the task of doing PR.  It will end up taking a back seat to his/her real job.  Hire someone with applicable experience and, if needed, get some outside help.  
  2. When pitching stories, do not call reporters with non-news.  
  3. Don’t blog, use Facebook or Twitter, or publish an e-newsletter unless you have something useful and non-self-promotional to say.   Educate your audience and give them the advantage of your expertise.

How can you track the ROI of your public relations efforts?  Seeing a mention in the press is great, but figuring out if it’s generating leads is probably not so easy.

Absolutely!  A stack of clips with your company’s name in it is definitely not a measure of success.  But clips that include at least one of your 5-6 main messages are of immense value.  That’s part of your long-term public relations ROI.  Make sure that when you do an interview, publish an article, or make a presentation, you use your messages.  In time, you will hear them echo back to you in the news media and elsewhere.  That’s how you know it is working.  Of course, you’ll also know it’s working when your sales increase, because good PR leads to high visibility which leads to higher sales.     

Care to share a couple of success stories?

I’ve helped dozens of companies go from being virtually invisible to being strong brands, but I think my biggest PR/media successes over the years have occurred when I have found good story ideas within client organizations and packaged those stories with 2-3 good sources for the right reporters at the right time. 

When you have a great story pitch, make an initial phone call and then send details by email. If you are doing it correctly, you really are doing part of the reporter’s job—finding good stories and sources.   Make it easy for them to say “yes.”  It works the same whether you are pitching your community paper or CNN (although CNN will be harder to reach on the phone!).

What is this ROI thing?

December 17th, 2009 :: Michael Dougherty

I was considering calling this post “How much effort are you willing to be put into getting what you want”, but ultimately changed my mind because I wanted the people who have asked me the question in the title to dig a little deeper. Lately I’ve been having a lot of conversations about Return on Investment, almost always just called ROI, with people interested in consulting work or at my day job.  I’ve come to the conclusion that most people throw this term around without thinking about all the different possible ROI there actually is. To start us all from equal ground, let’s check out what our friend Wikipedia defines Return on Investment as:

“In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss. The money invested may be referred to as the asset, capital, principal, or the cost basis of the investment.”

I know a lot of people that use the term ROI for their marketing, but Wikipedia calls it Return on Marketing Investment and defines it as:

“Return on Marketing Investment (ROMI) and Marketing ROI are defined as the optimization of marketing spend for the short and long term in support of the brand strategy by building a market model using valid, objective marketing metrics. Improving ROMI leads to improved marketing effectiveness, increased revenue, profit and market share for the same amount of marketing spend”

Since the same simple acronym is used for a multitude of purposes, and equations to determine it, I can see how people get confused, discouraged, or laser focused on one aspect of a larger whole. When it comes to your marketing strategy, pieces, or tactics, the ROI is going to vary with each effort. I know this may sound like an overwhelming concept, but it really isn’t as bad as it might seem.  It really breaks down to a simple statement, “Is the result worth the effort”. Is that oversimplifying it? Maybe a bit, but marketing really comes down to the simple questions we learned in school. Who, What, When, Where, Why, and How.

I can hear the cries now, “Mike you left out the cost aspect of it.” No, I didn’t. There’s a cost to everything. Whether it’s the amount of money that’s being put out or the amount of volunteers or paid employees taking their valuable time to brainstorm, create, implement and execute the strategy or piece. That, to me, is all part of the effort. So, as I asked above, how much effort are you willing to put into getting what you want?

You can determine that with a few simple questions. What is your ultimate goal/end result? What resources will you need to accomplish the goal/end result? Is the goal/end result worth the resources used?

You can make the answer to those questions as complicated or as simple as you want. For example, “the investment of passing out six thousand invitations is worth the three hundred people who actually attend, because the people who don’t will ultimately learn more about our party/product/services when they go home, use the specific url we created for the postcard, and research it.” Or another, “the investment of having my team of employees strategize for a marketing pieces is worth it because when the piece comes to completion they will have a greater sense of ownership of it and then want to help see it succeed in getting the x number of emails/sales/donations/etc. we want it to achieve”.

Do you see where I’m going with this?

You can get a marketing genius to come in and tell you that the Return of X minus the Financial Investment of Y divided by the Time Investment of Z hours is what your ROI will be. Ultimately, it comes down to how important, or valuable, the return is to you, your organization or company, your strategy, or success of your ultimate plan of world marketing domination. So, I’ll ask you the same question I have before, but in a different way, when you sit down to decide on your next marketing piece/strategy/effort is the return worth the investment?

I would love your thoughts on what ROI means to you. Please feel free to leave a comment below or you can reach me on Twitter by sending a message to @wickedjava, or on Facebook at facebook.com/mcdougherty.

As all ways, if you have been reading, thank you and stay wicked.