The Total Value of Public Relations

Since public relations is a broad profession and may cover a wide variety of disciplines – media relations, online engagement, crisis communications, public affairs, executive counseling, brand building, events, reputation management, employee communications and financial communications to name a few – MetricMan says it is difficult to conceptualize the totality of value public relations and communications deliver to the organization. For the most part, public relations measurement has focused on attempts to measure media relations value and is not really addressing the other areas very well. When you are attempting to quantify the full value and ROI of public relations, taking the broad view paints a much richer picture. The PR Value Cube is a tops-down conceptual framework for capturing all the ways PR is contributing value to the organization. PR contributes value in one of three major, interrelated areas (Y-axis): Marketing – Sales and other marketing oriented programs and metrics (e.g. lead generation) fit within this category. The vast majority of PR measurement efforts today fall within the Marketing category. Brand – PR contributes to building brands. Value contribution in this area is usually more anecdotal than measured. Experiential PR and many social media campaigns are contributing more to brand than sales or any other area. Reputation – One of the primary overarching purposes of PR is reputation enhancement and protection, yet our contribution here again is usually measured more by ‘gut metrics’ than analytics. Within each major area we can examine value created through Engagement, Influence and Action (X-axis.) Engagement – to what degree has exposure to PR materials, activities and events created Engagement with the intended target audience? Are they interacting with our content, creating links, forwarding to friends, talking about the brand, etc. Influence – the degree to which Engagement has influenced perceptions and attitudes. Likelihood to recommend the brand to a friend and brand consideration changes are two possible examples of Influence. Action – as a result of the public relations effort, what actions if any has the target taken? Did they visit the web site, tell a friend, buy the product, vote for our candidate, etc. The value itself can take one of three forms (Z-axis): Revenue generation Cost Savings (e.g. employee recruiting costs decline due to strong company reputation.) Cost Avoidance (e.g. avoiding recruiting costs because employee retention/loyalty has improved.) There is one more important consideration when thinking about the total value delivered by public relations and social media. That is time. PR creates value on a transactional, short-term basis (e.g. the value of 10,000 potential customers reading your article in today’s Wall Street Journal) and on a process-oriented, longer-term basis. Brand and Reputation are both examples of longer-term value. Both are process-oriented, and build and lose value over time, often measured in years. The other time dimension value created by PR is the residual value of PR. That is the value of the created searchable and archived content created by the PR function. The residual value may take the form of influencing organic search positioning. That’s a lot of value for one profession! Let’s hope CEOs, CMOs and other decision makers increasingly recognize the great value and superior ROI delivered by public relations.

White House Asks Public If It Wants Cookies

The Obama administration is asking the public to weigh in on whether the government should liberalize its 9-year-old policy limiting the use of persistent cookies. In a blog post, administration officials asked for opinions about matters including what basic principles should govern cookies, the choice between allowing consumers to opt out and requiring opt-in consent, and whether the use of cookies raises any non-obvious privacy issues. "The goal of this review is to develop a new policy that allows the federal government to continue to protect the privacy of people who visit federal Web sites while, at the same time, making these Web sites more user-friendly, providing better customer service, and allowing for enhanced Web analytics," wrote Vivek Kundra, federal chief information officer, and Michael Fitzpatrick, associate administrator in the Office of Management and Budget's Office of Information and Regulatory Affairs. Since 2000, federal agencies have not been allowed to use persistent cookies without clearance by an agency head. "In the ensuing time, cookies have become a staple of most commercial Web sites with widespread public acceptance of their use," state Kundra and Fitzpatrick. "For example, every time you use a 'shopping cart' at an online store, or have a Web site remember customized settings and preferences, cookies are being used." Earlier this year, groups including the think tank Future of Privacy Forum and digital rights organization Center for Democracy & Technology proposed that the White House should loosen restrictions on cookies. The government's use of cookies and other technology that potentially identifies particular computers is seen as raising more significant civil liberties issues than tracking by private companies who engage in ad targeting. But the government's decision regarding cookies could still affect Web companies' policies, says Jules Polonetsky, co-chair and director of the Future of Privacy Forum. "The ability of government to track users needs to be far more constrained than the private sector, but a smart policy that enables analytics and some degree of personalization could be very influential in showing what can be done," he says.

Understanding Your Target Audience

No business can be all things to all people. Instead, you must reach specific customers and satisfy their particular needs. As an entrepreneur, you must identify those customers and understand as precisely as possible what they want. The process of finding and studying potential customers for your venture doesn’t have to be complex or expensive, but it is extremely important. In a nutshell, it requires you to find out everything you can about the customers whom you intend to pursue. Once you have that information, you’ll have a much better chance of capturing those customers for your business. Demographics Begin your research by checking the demographics of the region that you plan to target. You’ll want to know the population’s makeup in terms of age, gender, income level, occupation, education, and family circumstances: married with children, singles, or retired. To find that information, you’ll need to spend some time online. Do a Google search to find the most recent edition of the Country and City Data Book, published by the U.S. Department of Commerce. This research will give you the most recent census data on the area you wish to target. Geographic and Lifestyle Factors Give some thought to where and how your target customers live. Are they urbanites who walk everywhere (foot traffic will bring them into a store) or suburban soccer moms who spend most of their time in the car (do you need to provide a lot of parking space)? What is the weather like? Are people more likely to spend a lot of time outdoors, or are indoor activities more popular? Are these people conservative with their money, or are they spenders? The answers will help determine what you can sell to them, how you should sell it, and at what price. Customer Needs Consider all of the reasons why people might purchase your product or service. For example, if you’re opening a health club, what are the priorities of your clients? Do they want to take exercise classes, work out with a trainer, or play racquet sports with friends? Will you need to be open early in the morning to accommodate commuters who need to leave for work? Are there a lot of stay-at-home or work-from-home parents who need child care services in order to attend classes? Find out by talking to people in the local fitness industry and by quizzing friends or acquaintances who go to health clubs. Then you can design and market your club accordingly. Thinking about opening a coffee shop? Stake out the area where you think you'd like to start the business. Notice the traffic, car and foot, at various times throughout the day to see how many people might frequent your shop. Do people dash in and out of shops, or would they linger? This might help you determine whether you should also sell small pastry items or full meals as well as coffee. Once you’ve considered the key demographic factors, you can begin to assemble a customer profile, a more focused statement that describes your target market in detail. Consult that profile when you make decisions about issues such as what products and services to offer or advertise, how much to charge for various products, and expansion plans.