Just when we started to get a handle on how to respond to fake news attacks, we began to see our profession vilified in media reports as spin doctors responsible for the creation and dissemination of “alternative facts.”
Against this background, I’ve heard rumblings from colleagues that they were keeping things lean this year, due to concern over client budget-tightening and economic uncertainty.
Although I understand this trepidation—the Great Recession is still fresh in my mind—I also realize most of our PR colleagues don’t have data that can give them a true picture of where they stand relative to their peers.
That’s why the Spin Sucks community conducted its first Independent PR Professionals Survey. Our intention is to revisit this survey annually to give independent PR pros the benchmarks and insights they need to expand their businesses.
Here are a few highlights:
Independent PR firms keeping staffing lean
Almost half (49 percent) of the independents surveyed are operating without employees. In addition to many firms that are solo acts, many are engaging contract workers either as a permanent part of their team or to complete one-off projects outside their areas of expertise.
Clients aren’t going anywhere
Although 14 percent of firms reported primarily taking on client work that spans a year or less, more than a third (41 percent) have primarily long-term client relationships lasting three years or more.
Firms not applying their PR skills to their own business
You might think PR firms would be standouts in their own business development efforts, but many organizations do not have a formal process in place. When asked to describe their typical business development process, most respondents cited referrals or word-of-mouth as their primary drivers of new business.
Although PR pros understand the benefits of proactively prospecting for new business, many get caught up in the other aspects of servicing clients and running the business. A surprising 42 percent of respondents cited a lack of time as their biggest barrier to business development.
Prioritizing business development pays off
Some of the best-performing survey respondents were those who had prioritized having a proactive business development strategy. These organizations used all the tools in their integrated communications toolbox to drive traffic to their website and gain public awareness for their firm’s expertise.
Instead of focusing on networking with other PR pros at PR industry events, others found ways to build relationships at a local level with executive decision-makers.
“We serve on the steering committee and serve as strategic communication counsel to the Regional Transportation Alliance (RTA), the business leadership group in the Greater Research Triangle region to promote mobility and transportation improvements,” says Roger M. Friedensen, a partner at Forge Communications. “Hands down, this is the best organization in the area for networking one on one in a meaningful, purposeful and productive way.”
Applying the survey results to your business
Without a benchmark to compare your firm against, it’s easy to become complacent. You base one year’s revenue projection off the prior year’s with hope for a modest increase. That’s OK as a starting point, but it’s helpful to have hard numbers to see where you can do better.
For instance, if your average revenue per client is significantly less than the industry average, it may be time to work on your negotiation skills or identify ways to expand client relationships.
If your average client relationship regularly lasts a year or less, it’s time to ask whether you’re taking on the right clients. Is there a way you could better vet prospects before signing a contract? If these short-tenure relationships are just one-off project work, is there an opportunity for you to pursue a long-term relationship with the client?
Look at the full survey results, and then benchmark your own firm against the numbers. How do you fare? There’s still time to recalibrate your 2017 business plan. If there’s something you’d like the survey to have included, let me know. We appreciate your feedback and participation in making this a valuable industry resource.
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