13 Lessons Learned in the PR Agency Business

Back in ’92, when I started my PR firm, I had more than a dozen years of PR experience – and more than half of that with another agency – so I thought I knew pretty much all I needed to know.

I was wrong. Really wrong.

And as Bianchi PR heads toward its 21^st anniversary, I realize just how much I have learned over the past two decades … and thought it might be helpful to share a few key lessons.

Here’s my baker’s dozen list:

1. If your staff needs a pool table or basketball hoop in the office in order to have fun at work, either they’re doing it wrong or they are in the wrong business … or both.
2. If a prospective client or employee is problematic or inconsiderate at the very start, they’re just going to get worse.
3. It’s good to take PR, your job and your client seriously; it’s not good to take yourself too seriously.
4. If a prospect won’t give you a budget figure upon which you can base your proposal, they probably don’t have an approved budget.
5. Toxic employees are not worth all the pain. Neither are toxic clients. Move on.
6. No one is irreplaceable, not even you. Really.
7. If you spend the client’s money and time as carefully as you would spend your own, you’ll both be better off.
8. Monthly PR retainers are not necessarily evil. Some clients actually need and prefer a predictable budget spend and a steady, consistent effort.
9. If you take care of your clients, they will take care of you. Same goes with your employees.
10. It’s not our job to be the hero. It’s our job to make the client the hero.
11. It’s okay – even beneficial sometimes – to make mistakes … as long as you own up to them, fix them, learn from them … and don’t make the same ones twice.
12. Listening is the most important skill in PR. If you’re talking more than you’re listening, you’re broadcasting, not communicating.

Oh yeah, one more thing ..

13. It’s not as easy as it looks.

12 Things to Expect from Your PR Agency – Reprise

In an earlier post, we outlined a list of seven things a client can do to make its PR agency great – our thoughts on how a client can make its PR firm more effective and a better partner ( here’s the link: http://wp.me/ppqb5-iF).

Based on our firm’s 20-year history – and a few client relationships that have lasted more than 16 years – we’ve learned there are also a number of things an agency should do to make its relationships with clients mutually beneficial.

Of course, results are ultimately the most important thing in the client-agency relationship.

Generating solid results, however, is just the start of a great relationship, according to many of the clients we’ve talked with over the years.

If you’re a client, your peers think you should also be able to expect your PR firm team to:

1)      Be attentive – they should be responsive, accessible and pro-active, and they should feed the relationship

2)      Think long-term and strategic – not just about short-term activities or easy billings

3)      Offer ideas and opportunities that are good for your business – even if they are outside of the PR realm and don’t add any revenue or work for the agency

4)      Be a good steward of your budget – they are prompt and fair with billing and are thrifty with your money

5)      Keep you informed – they strive for transparency and no surprises

6)      Anticipate your needs – and they work hard to meet them before you’ve asked them to

7)      Provide a realistic view of what you can expect – honest, accurate, puffery-free predictions about cost, timing, impact and/or results

8)      Demonstrate that they are always thinking about you and looking out for your best interests

9)      Make you the hero – and not seek or take credit for a program’s successes

10)   Know, and cater to, your preferences and priorities – instead of forcing you to accept theirs

11)   Communicate with you candidly, honestly and frequently – better too much than too little

12)   Make it pleasant, friendly and fun for you to work with them – everyone does better in a positive environment.

I’ve always believed that if we, the PR agency team, take care of the client, the client will take care of us. So far, in the majority of cases, that has proven true. It can for you, too.

Clients: What other expectations do you have for your PR agency?

How to Get the Most Out of Your PR Firm – Part 2

In our previous post (http://wp.me/ppqb5-qI), we offered the first five of 10 things you, as a client-side PR professional, can do get the most from your PR agency.

My contention, based on more than 30 years in the PR profession on both the client and the agency side – is that the best way to get the most out of your company’s relationship with its PR agency is to invest more thought and time into the actual relationship. 

Nurture it. Feed it. Grow it.

If you want to get more satisfaction, better ideas, better service and ultimately better results from your PR firm, here are tips six through 10 for building a better relationship:

6)      Make a sincere effort to show your appreciation. When the agency provides exceptional service, meets a crazy deadline or scores a major media hit, make the time and the effort to recognize it with a call, a text or an email.

7)      Be honest. If your boss doesn’t need that release draft until next week, don’t ask the agency to have it done today. If your account team suspects you are crying “wolf” too often, they may not take you seriously when you really do need something today.

8)      Provide the agency with feedback on projects promptly.  Even if it’s just to say “Thanks for the draft. Looks good. I’ll run it by the product team and will get back to you,” close the loop so they know the project has been received and is moving along. A good agency will ask, but an agency with a good client won’t have to ask.

9)      Trust the agency enough to really listen. If you chose the right firm, the account team is on your side and wants you to succeed. You may not always agree with them, but you hired them for their expertise and their outside perspective. At least hear it out. And if you don’t agree, give them insight as to why you are may be taking a different path.

10)      Make sure the housekeeping issues are being handled. Ensure that the agency is being paid fairly and on time for its work. Be the agency’s advocate with your Accounts Payable Department if there are payment issues. Cash flow is critical to every agency’s success. And if you help ensure that cash flow is steady, the agency can better focus on generating ideas, opportunities and results for you.

To have the best PR partner, you have to BE the best PR partner … and most times, all it takes is a little more focus on the relationship you create.

Clients: What else are you doing that helps make your company your PR firm’s preferred client?

How to Get the Most Out of Your PR Firm – Part 1

We are all trying to maximize value these days. Get more for our money. Squeeze more results from a smaller budget. Focus more effort on higher return activities and less effort on low-return projects.

PR is no different.

But in an era marked by hammering vendors, squeezing suppliers and conducting auctions to drive costs down, oddly enough, the best way to unlock the hidden extra value  and get the most out of your company’s relationship with its PR agency is … to invest a little more thought and time into the relationship. 

It costs very little, and can have huge returns.

After all, PR is a relationship business, and human beings, not machines, do the work within the framework of a relationship.

The key point is: the difference between what individuals on an account team are capable of doing and what they are willing to do is determined by how much they value that relationship.

Having worked on both the corporate and agency sides of the PR business, I have noticed that the most effective relationships were those where the client treated the agency like a true partner, rather than just another vendor, and treated the account people with respect, dignity and kindness.

And the agency, in turn, gave the client preferential treatment – the first priority, the brightest account people, the most innovative ideas and the best service … because the agency personnel felt they were personally vested in a relationship.

If you want to be your PR agency’s preferred client, here are the first five of 10 simple things you can do:

1. Give the account team the information, perspective and access to executives they need to do a great job for you. Help bring them into your organization and keep them informed.
2. Treat the account team with the same grace, care and compassion you offer your teammates and customers. It’s a fact of human nature: people will do a better job for people who treat them well.
3. Respect their opinions and their time. They hate being ignored or wasting time as much as you do. Maybe more, because the agency folks have to account for every ¼ of an hour.
4. Be realistic in terms of your expectations for results, deadlines and cost. Stretch goals can encourage people, but impossible goals will only discourage them.
5. Be organized, plan ahead when possible and offer a heads-up if a “hot” job is coming. This reduces stress and allows the PR firm to marshal the necessary resources to meet your needs. If every job you give them requires a panicked rush, you’re likely to pay extra in the long run.

See next week’s post for tips six through 10.

9 Ways to Build a Winning Partnership with Your PR Firm

(Post by Leslie Dagg, Account Supervisor)

In a time where the average client-PR agency relationship lasts only a couple of years, we’re often asked how we’ve maintained client relationships that have lasted more than a decade.

In two words, the answer would be: true partnership. While most PR firms have solid processes and competent people who want to deliver for the client, and most clients want their PR team to succeed on their behalf, it takes more than that to create a truly winning partnership.

Drawing from our own, as well as our clients’, experiences, here are nine key success factors:

1. The early bird gets it – The earlier you bring your PR partners into the process, the more value they can add and the more they’ll feel ownership in your program. If you treat them like strategic partners and involve them in strategy development, they’ll be more effective than if they are treated merely as a vendor implementing tactic.
2. Acquaint and integrate – Both the client and agency need to invest time and effort to get to know and understand each other’s organizations, people and goals. A deep-dive session, regular visits to each other’s facilities, sharing materials and constant communication goes a long way.
3. Share the bull’s-eye – Agree upon common objectives, measurables and vision of success upfront, so you can work in lock-step together.
4. Let reality rule – The best relationships are built on trust, candor and honesty. Give the agency enough information so it can provide you with its thoughts about realistic budgets, results, measurements and timing. And agree upfront on what is fair in each of these areas.
5. All-access pass – The partnership works best when: a) the agency provides the client with senior-level attention whenever necessary; b) the agency consistently acts with a sense of urgency and purpose; c) the client provides access to the right people / information; and d) the client makes responding to the agency a priority.
6. Keep your ears open – Listen to understand first, and then listen to respond. Be open to your partner’s ideas. You hired the firm for a reason – its experience, expertise, insights and outside perspective. And if, after careful consideration, you decide not to follow the firm’s advice, explain why.
7. Ward off surprises – By establishing policies and procedures upfront, such as scheduled calls, meetings, status reports, budget tracking, etc., both parties minimize unsettling surprises. Early warnings about emerging issues can help isolate and address problems before they throw a wrench in the plans.
8. Keep house – In the best relationships, both the agency and the client take care of the housekeeping issues: the agency is fair on pricing; meets deadlines; provides solid service; and listens. The client provides clear direction, makes sure the bills are paid and provides timely feedback.
9. Have fun and commemorate – Taking time to celebrate achievements and success is important. It builds camaraderie, offers inspiration and provides mutual encouragement … leading to the next success. After all, fun helps to spark creativity, creativity leads to new ideas, and new ideas drive success!

What success factors would you add?

A Dozen Things to Expect from Your PR Firm

We recently outlined a list of seven things a client can do to make its PR agency great – our thoughts on how a client can make its PR firm more effective and a better partner (http://wp.me/ppqb5-iF).

Based on our firm’s 20-year history – and a few client relationships that have lasted more than 16 years – we’ve learned there are also a number of things an agency should do to make its relationships with clients mutually beneficial.

Of course, results are ultimately the most important thing in the client-agency relationship.

Generating solid results, however, is just the start of a great relationship, according to many of the clients we’ve talked with over the years.

If you’re a client, your peers think you should also be able to expect your PR firm to:

1)      Be attentive – they should be responsive, accessible and pro-active, and they should feed the relationship

2)      Think long-term and strategic – not just about short-term activities or easy billings

3)      Offer ideas and opportunities that are good for your business – even if they are outside of the PR realm and don’t add any revenue or work for the agency

4)      Be a good steward of your budget – they are prompt and fair with billing and are thrifty with your money

5)      Keep you informed – they strive for transparency and no surprises

6)      Anticipate your needs – and they work hard to meet them before you’ve asked them to

7)      Provide a realistic view of what you can expect – honest, accurate, puffery-free predictions about cost, timing, impact and/or results

8)      Demonstrate that they are always thinking about you and looking out for your best interests

9)      Make you the hero – and not seek or take credit for a program’s successes

10)   Know, and cater to, your preferences and priorities – instead of forcing you to accept theirs

11)   Communicate with you candidly, honestly and frequently – better too much than too little

12)   Make it pleasant, friendly and fun for you to work with them – everyone does better in a positive environment.

I’ve always believed that if we, the PR agency team, take care of the client, the client will take care of us. So far, in the majority of cases, that has proven true. It can for you, too.

Clients: What other expectations do you have for your PR agency?

8 More Questions to Ask in Your PR Agency Search

As our Feb. 7, 2012 post – Eight Questions to Ask in Your PR Agency Search http://wp.me/ppqb5-e8– is still getting regular views five months after posting, it seems many people are struggling with the challenge of selecting the right PR firm.

So, based on our experience on both the client and the agency sides, we’d like to offer eight more questions you can ask that may aid you in making your choice. (For the first eight questions, click on http://wp.me/ppqb5-e8 .)

1)      What digital/social media experience does the firm have? For most clients, social and digital media will play at least some role in their PR program, so you’ll want to get an understanding of the company’s knowledge and real-world experience in the platforms that are best suited for your market. (One crucial clue – Does the firm use social/digital tools for itself as well as for its clients … or are they hoping to experiment/learn on your account?)

2)      How long have the individuals designated to work on my account been with the agency? If most of the team members are recent hires, it may be a sign of high-turnover at the agency, which can lead to inefficiency, instability and frustration … for you. You’d like an account team that already knows the agency’s policies, procedures and operations, so they will be more efficient and effective.

3)      What’s the average tenure of the agency’s staff on their respective accounts? Again, if the agency seems like it’s continually playing musical chairs, moving team members around and around, your account may experience the same kind of dizzying team turnover – and you’ll likely spend more time getting people up to speed than getting good results. Some new blood and fresh thinking on an account team are important, but are best when paired up with some stable teammates who know your account inside and out.

4)      How do you determine the agency’s rates and/or fees? Some agencies bill at one average hourly rate. Some bill at different rates for different job titles. Some bill actual hours worked each month, others bill on a monthly retainer basis and still others bill one-price project fees. However the agency operates, make sure you understand what you’re paying for and how much you’re paying for it, so there will be no surprises. A good partner will be transparent and forthright in its billing, and a steadfast steward of your budget — to help you get the most bang for your PR buck.

5)      Can you give me an example of how the agency helped a company like mine meet similar challenges? While past performance isn’t the only indicator of future success, it can be important. Most companies want an agency that has successfully been there and done that. If the agency’s success story was for a client in a different industry, at least the challenge should be similar to yours. The agency’s approach to the challenge and the thinking behind it are what will be most revealing to you.

6)      What can you tell me about my company? Has the agency done its homework to learn all it could about your company, without prompting? Have they gone beyond a cursory visit to your website? Have team members reviewed the past year’s news coverage or talked with editors and customers to get some perceptions of your company? If the agency is busier shaping its own story than trying to understand yours, they may not have the client focus you want.

7)      What can you tell me about my competitors, my customers and my market? Again, most companies would prefer an agency that is eager and proactive in learning about the client’s business environment over an agency that is focused on selling itself. Going the extra mile to learn about the environment in which your company operates and providing a candid assessment shows that the agency offers the kind of analytical thinking and candor that are the hallmarks of trusted advisors.

8)      Would you be willing to work with us on a project as a “test drive”? PR firms often want to sign a one-year (or longer) contract from the start. But that involves quite a bit of risk.  Most times, it’s better for a company and an agency to “date” before they get “married.” This approach limits the commitment and mitigates risk for both parties, while you determine if the most important factor in the client-agency relationship – the CHEMISTRY – works.

Happy hunting!

PR Agency Search: Experience and Value Trump Hourly Rates

It’s no secret that companies are looking to get maximum value from their PR firms. And in that quest for value, when selecting PR firms, some companies give heavy weight in the evaluation process to hourly rates.

This can be a mistake, because hourly rates do not equate to actual value.

Years ago, I was a corporate PR manager. While my company had a PR agency of record, I hired a smaller firm with a higher hourly rate for a special project. And it turned out to be a great value. Why? Because the smaller firm was able to accomplish in one hour what the agency of record couldn’t accomplish in two weeks of solid work.

The difference between the two efforts – other than thousands of dollars in potential cost – was experience.

Many clients have learned the hard way that the agency with the lower hourly rate can actually be the more costly agency – because it takes them longer to get the job done … if they can get the job done at all.

The principal of that smaller PR firm I mentioned earlier told me a story about the great scientist, Charles Steinmetz. An electrical genius with more than 200 patents to his name, Steinmetz worked for General Electric for a number of years and retired in the early 1900s.

It was said that, after his retirement, GE started having a problem with a complex electrical system Dr. Steinmetz had developed. After spending thousands of dollars and hiring several consultants, it seemed no one could fix it. So, at his wit’s end, the GE plant manager called the professor to see if he could help. He told Steinmetz he would pay whatever consulting fee Steinmetz felt was fair.

So Steinmetz traveled to the GE facility, met the plant manager and studied the machinery for a few minutes. He then climbed up on the machine and marked the malfunctioning part with a piece of chalk and told the GE manager how to fix it.

After thanking Steinmetz profusely for his amazing speed in solving their problem  the manager gratefully ushered Steinmetz back on his way home, and had his men begin the repair.

When Steinmetz’s bill arrived a few days later, the manager was shocked. He called Steinmetz and said:”Dr. Steinmetz, I have received your invoice. How can you justify billing us $10,000 when you only spent a few minutes in the plant?”

Steinmetz said: “I charged you one dollar for marking the broken part, and $9,999 for knowing where to place the mark.”

So, while the hourly rate was high, the total cost was a bargain.

GE was not really paying $10,000 for just a few minutes of the genius’ time; they were paying for the decades of experience and the unique knowledge that enabled Steinmetz to identify their problem in just a few minutes. They paid for the experience that got the desired results.

Whether or not the story is true, it makes an important point: When you’re looking at PR agencies, don’t just focus on hourly rates or creative answers to questions. Look at the agencies’:

• Experience in your market;
• Knowledge of the trends, issues and players in your industry;
• Time invested in keeping up with your market;
• Relationships built with the media and organizations in your sector; and
• Results generated for companies that are similar to yours.

Most importantly, look at the actual people at the PR firm who will be applying their insight, knowledge and experience on your behalf.

Your best value will be a Steinmetz … the firm with the experience and knowledge to get the job done quickly and efficiently.

And that’s true genius!

Seven Ways a Client Can Make Its PR Firm Great

Having worked both sides of the street – first as a corporate PR manager, then as an agency VP and later an agency principal – I was always amazed when I saw a mediocre firm doing great work, and even more surprised when I witnessed a great firm doing mediocre work.

In most cases, it wasn’t the firm’s size, its people or its experience that made the difference. It was the firm’s attitude.

Most PR firms have solid processes and skills. They have competent people who want to succeed and want to deliver for the client. (Disclosure: I am blessed with a great team – one which a key auto industry publication editor tells me time and again “… is the best in the business.”)

With PR firms, as with many other things in our lives, it’s attitude that makes all the difference.  And with PR agencies, that attitude stems largely from the relationship the firm has with its client.

I’ve come to realize a simple truth: A PR firm can only be as good as its client allows it to be. If you want your PR agency to do great work for you, be a great client.

In talking with some client-side executives and drawing from my own experience, here are seven things you can do to be a great client:

1.     Bring the agency in early. The earlier you bring your PR partners into the process, the more value they can add … and the more they’ll feel ownership in your program. If you treat them like a strategic partner and involve them in the strategy development, they’ll be more effective than if they are treated as merely a vendor implementing tactics.

 2.     Give great direction. The best clients are those that effectively share their goals, objectives, preferences and taboos. Explain what you’re trying to do, what you want and even what you don’t want. More time spent giving good direction upfront means less time and budget wasted, less frustration downstream … and greater chance of success.

3.     Create realistic expectations. The best client-agency relationships are built on trust, candor and honesty. Give the agency enough information so it can provide you with its thoughts about realistic budgets, results, measurements and timing. Get agreement upfront on what is fair in each of these areas.

4.     Hear the agency’s advice. Listen carefully to the agency. Listen to understand first, and then listen to respond second. Be open to their ideas. You hired the firm for a reason – its experience, expertise, insights and outside perspective. And if, after careful consideration, you decide not to follow the firm’s advice, explain why.

 5.     Value the agency’s time. Don’t waste the agency’s time, even if you’re paying for it. Repeatedly sending your agency team off on wild goose chases and dead-end projects will only serve to demoralize them over the long term. No one wants to see their best ideas or their hardest work kicked to the curb time and time again.

6.     Pay on time. Make sure your accounts payable department is paying the agency’s bills on a timely basis. There’s nothing more frustrating – and wasteful – than for the agency to have to spend extra time and effort chasing the client for months to get paid. Everything else being equal, which client do you think an agency is going to gladly stay late or go the extra mile for – the one who pays on-time or the one that is always late?  

 7.     Employ the Golden Rule. Your Mom was right. Treat your agency team the way you want to be treated, with respect, honesty, consideration, appreciation and loyalty. Treat them to a compliment, give them recognition and surprise them with an award. If the members of your account team feel that you really appreciate, respect and support them, they will be willing to go above and beyond to help you.

In the end, public relations is a relationship business. Nothing – not even budget – affects the success of your PR agency’s efforts more than the relationship you create and maintain with your firm.

Let’s make it a great one!

 

PR Retainers Are Long Gone. Aren’t They?

Client demands for accountability, stringent cost-cutting and pay-only-for-placement scenarios have killed traditional PR agency retainers, haven’t they?

Not really.  Surveys of independent PR firms continue to show that approximately one-half of clients are on some type of retainer. So why would a client agree to a retainer? The better question is: Why wouldn’t a client want a retainer agreement?

Here are seven ways the client can benefit from a retainer agreement:

1. The retainer ensures that the client has access to a prescribed amount of work, intellectual attention and manpower capacity each month, and a consistent effort by a dedicated agency team.
2. The retainer encourages both the client and the agency to invest in a mutual commitment, makes their work together a priority, and encourages a more stable and fruitful relationship. Less effort and time is spent on chasing partners, which enables more focus on accomplishing the client’s goals.
3. The retainer sparks, supports and rewards long-term, strategic thinking by the agency. This kind of thinking typically doesn’t come in a project-by-project relationship, as few agencies will risk offering big ideas and opportunities without being compensated. (Remember: Free ideas are worth every cent they cost!)
4. The retainer protects the client by eliminating any potential agency conflicts of interest. With a retainer, the client has the right to expect that the agency would not accept work from the client’s direct competitors. Project clients who haven’t made a long-term commitment, on the other hand, have little right to expect an agency to turn down other work.
5. The retainer provides the client immediate access to the firms’ services, especially in case of emergencies and crises. Project clients in a jam are often at the agency’s mercy – in terms of both timing and cost.
6. The retainer ultimately generates better results more cost-effectively, as it enables the agency to know and understand the client better — providing savings in time, effort and stress for both the client and the firm over the long haul. It also amortizes the start-up costs over a longer engagement for greater efficiencies, as compared to project-based activities which start and stop.
7. The retainer helps to ensure agency stability and success, by providing a steadier and more predictable cash flow. Most clients want some assurance that the agency and a stable, talented team will be there next week or next month when they are needed. And often, the client’s financial folk  appreciate and prefer a steady, predictable spend of the PR budget.

There are a number of retainer arrangements.  One we often use is a hybrid retainer which sets a minimum monthly service fee (ensuring a predictable, consistent level of activity on the agency’s part) yet allows for additional work to be billed as over-hours to meet certain peaks in the client’s needs.

Whatever the form, the strength of the retainer derives from commitment, stability and predictability. And with an upfront agreement on mutual expectations, goals and housekeeping (what’s covered and what’s not, payment timing, etc.), downstream surprises and issues are avoided … and efforts are focused on the client’s goals rather than unneeded distractions.

Now, don’t get me wrong, working on a project basis can be a wise choice in some select situations. In fact, many of our long-term retainer clients of 10 – 15 years started out with projects — limited engagements with limited risks — and then grew into retainer relationships — like dating before getting married.

An introductory project can help the client and the agency determine if the chemistry is right for a potential long-term relationship. But ultimately, if you’re seeking steady, long-term results and a fulfilling relationship, rather than a disjointed series of sporadic hits, some type of retainer relationship is usually the best way to go.

 What has been your experience with PR retainers?