Archive for January, 2010

Companies, Public Relations and The New Media Landscape Part.3

Several companies have realized the importance of these new opportunities and have slowly started joining the conversation. Paradoxically though, many forget the most important step: listening. The Oxford English dictionary defines ‘conversation’ as an “informal exchange of ideas spoken by words”. Organizations must ensure that this ‘exchange’ happens and that they aren’t simply spreading their own messages. Remember what Ivy Lee said: PR is a “two way street”. The ability to hear what customers and stakeholders have to say is one of the great benefits of the new ecosystem; companies might as well be taking advantage of it. They should use each bad comment, complaint or protest as an opportunity to learn from their mistakes and improve. By doing so, they will be rewarded. Their consumers will feel valued, appreciated and acknowledged and will trust them increasingly in exchange (and in the current situation they could use some extra trust). Not only will this improve the relationship they share with their community it should also increase their revenues as they will technically have produced a product or service that better suits their stakeholders needs. It becomes a win-win situation.

As Andy Marken states in the Public Relations Quarterly, when facing consumer complaints and questions companies should aim to: “Calm that individual down, help him get the right assistance/answer and the company has not just saved a sale but more frequently has gained another company/product advocate who will speak favorably about the firm and experience with others”. Remember that every consumer they convert will potentially help the PR team do their job by praising the company’s actions. And knowing that consumers place so much trust in what they hear online, companies should capitalize on the situation. There was never any good reason not to listen to customers!

Last but not least, I firmly believe that public relations should increasingly become part of the management strategy. It has too frequently been used to resolve problems instead of preventing them. Having a PR counsel work as a part of the management team would help companies make the appropriate choices and decisions to maintain a proper image and preserve stakeholder trust. Edward Lordan states in one of his Public Relations Quarterly articles: “Public relations should be integrated into the strategic decision-making process in an organization, not exclusively as a reaction to events inside and outside the company.” I must say that I totally agree. Many scandals could have been prevented if their management system had been organized in such a way. In fact, The PR counsels could have helped the companies take appropriate ethical decisions, maintain high levels of transparency and preserve employee and stakeholder relationships.

Blatant misconceptions of the field, plummeting consumer trust and the new media ecosystem should all be reasons for companies to readapt their PR goals and strategies. Although it is already late, it’s better to reform now than never. Moreover costs shouldn’t be an issue because it will cost less to adapt now than to compensate for the failure to do so. As Gerald Kane states in The Harvard Business Review: “companies as diverse as Kaiser Permanente, Comcast Domino’s and Amazon have learned that not having a social media team can cost far more than having one [...] each learned it’s lesson the hard way.” So here is my advice to companies: embrace the new media landscape, listen to your stakeholders, build your corporate practice and guidelines off of their advice & opinions and remain open to suggestions. You will rapidly see the return on investment, as you won’t be on your own anymore. You will be a better company backed by better customers. Do yourself a favor, and take the opportunity while its still here!

Tags: , , , , , , ,

Companies, Public Relations and The New Media Landscape Part.2

The new media landscape has created huge PR opportunities for companies and organizations yet many have failed to recognize these. One of the great advantages is the simple shift from a media landscape based on control to one based on openness. This situation is caused by the unique fact that consumers can now cheaply and effortlessly create content. In the past the high costs of production forced the content to be produced by large and specialized media companies. They subsequently had the final word on what they wanted to distribute. But, in a world where anybody can produce content at minimal cost, the gatekeepers are bypassed and companies can independently decide what they deem to be newsworthy. This valuable opportunity enables them to keep their publics informed day-in day-out and increases their ability to react rapidly in the event of a crisis. More significantly though, this shift has enabled them to be directly connected to their audiences.

Some will argue that this is not beneficial to PR, as skipping the gatekeepers also does away with the opportunity to benefit from “3rd party credibility”. While this might seem like a valid point, I tend to believe that the shift in the landscape hasn’t completely altered the phenomenon of credibility and that the benefits brought on by the changes firmly outweigh the disadvantages. Remember that any new medium also brings new producers, and that it is inevitable that some of these producers will become more trusted than others. Hence, contrary to public belief, organizations can still benefit from 3rd party credibility in new media platforms on the Internet. The credibility just doesn’t belong to the same people they used to deal with. Chris Brogan, a media consultant, author and respected marketing expert calls these new sources of online credibility ‘trust agents’. He defines them as: “people who use the web in a very human way to build influence, reputation, awareness” (Brogan, Smith) While they can take many forms, trust agents are most commonly bloggers that gain high amounts of authority & trust on the Internet and subsequently develop a huge community of readers.

Engaging with and using such new sources of credibility is part of the changes companies must make. As a matter a fact, in some cases it may be more beneficial for organizations to get online ‘trust agents’ to preach their message than to use traditional large-scale media outlets. This is due to the fact that their (trust agents) communities are extremely targeted, specialized and dedicated to the subjects they follow. This relevance is crucial. In other words, speaking to 1 million people is useless if only 50 are interested in your cause. Ultimately, the goal is to get these dedicated followers to preach the organizations messages as well. It becomes a virtuous circle of word of mouth.

While some might want to stick solely to traditional media, I would argue that developing relationships with ‘trust agents’ is a compulsory part of corporate public relations in this new media landscape. Not engaging with these agents and their communities could very well be fatal. Consider the following: “A recent PEW study found that nearly 40% of Americans say they have doubted a medical professional’s opinion or diagnosis because it conflicted with information they’d found online. If users put that much faith in what they learn on the Internet, what will they be willing to believe if members of a social media forum start trashing your organization?” (Kane, Fichman, Gallaugher, Glaser) The reality of the current situation is that people will be talking about brands and companies online whether they like it or not. Chris Anderson, a bestselling author and the chief editor at Wired magazine comically expresses this idea when he states:  “Your brand is not what you say it is, it’s what Google says it is.” (Anderson Chris) Consumers have been voicing their ideas, thoughts, concerns, worships and complaints over these online media channels for years. It is now up to companies to do the same. Doing so will ensure that they remain in control of their image and reputation while portraying engagement. In the end, this will also enable them to develop better relationships with their stakeholders; which was the goal of public relations in the first place.

Brian Solis, author of "Putting the Public Back In Public Relations" presents this brilliant graph that exposes the multitude of new media channels available to PR in this day and age, while giving some quick insight on how to use them. Creative Commons photo courtesy of briansolis.com

Tags: , , , , , , ,