Most people I know have been deeply depressed since the results of the EU referendum came out. Many clients and colleagues are EU citizens who have no idea what the future holds for them, while others work for companies that will be directly impacted by Brexit, either because they trade with the remainder of Europe, or because they are owned by businesses based in the EU.
The fact that many people seem to have been swayed by the downright lies of the Leave campaign adds to the anger, as does the hasty backtracking of Brexiteers on key pledges repeated during the campaign.
We’re left in limbo, and what’s more it won’t be resolved soon – negotiations to leave will not begin until the Autumn at the earliest, and then could take two years to complete. So how can businesses ensure that they are not casualties of Brexit, and what marketing lessons do they need to learn?
1. Strengthen existing relationships
It could be tempting to deprioritise any customers within the EU and focus on the UK only. This is exactly the wrong approach – now is the time to invest in the relationships that you have and even extend them. No-one knows what will happen when it comes to potential trade tariffs or barriers, but the best way to be ready is to build a strong relationship with customers that mean they still want to deal with you if tariffs mean your prices will potentially go up. Make the effort to go out and visit customers and get under the skin of their businesses to make yourself as critical as possible to their operations.
2. Target the US
One immediate consequence of the Leave vote has been a slump in exchange rates between the pound and other major currencies. This means that for those selling abroad, they are currently more competitive – particularly if you are a services business that is not buying in raw materials from overseas to make products. So look at how you can exploit this by marketing to Europe and the US and coming up with new offerings targeted at their particular needs.
3. Develop new markets
Brexiteers claim that we don’t need Europe, as we should focus on trade with emerging economies such as China, as well as internally within the at the moment United Kingdom. So do look at how you can market yourself to new countries – what is required and what advice/grants can you access to build a presence in new areas?
4. Show you are open for business
As many commentators have pointed out, companies can only play the hand of cards they are dealt – unlike Boris Johnson they can’t just walk away from the mess we are in. As we move forward it is time to show that you are going to focus on the positives. Invest in marketing to spread the message that you are open for business and ready to take on the challenges of the next few years. This is equally true if you are an international company or a local one – people are looking for reassurance, so ensure that your marketing reflects this.
5. Focus on the value you deliver
Even if there will not be a recession in the UK, there is likely to be an economic slowdown of some sort. The companies that survive will be those that deliver real value to their clients, rather than just winning business due to costs or familiarity. Go back to basics, talk to clients and understand what the benefits are that you deliver, and market these strongly to existing and new clients. This might mean pivoting your business, or introducing new services, and that can be difficult, but might be necessary for your survival.
Nietzsche’s quote that “that which does not kill us, makes us stronger” has already been trotted out many times, but it is not a bad place to start post-Brexit. Unless you plan to flee the country your business needs a plan to move forward, and following the marketing ideas above is a good place to start. If you have any further suggestions don’t hesitate to add them in the comments section below.
For many media watchers the last week has felt like a watershed moment. The Independent announced that it will end its print edition in March, making it the first national newspaper to go online only. At the same time, youth channel BBC3 has come off the airwaves and moved solely to be web-based.
So, is the end of old media as we know it and will other channels and papers follow? And, by extension, does it mean that PR people will have to change how they work as media relations becomes less important with consumers getting their news in other ways, for example through citizen journalism and sites such as Buzzfeed?
Answering those questions in turn, old media isn’t dead, but isn’t healthy either. The Independent was always the smallest of the national newspapers when it came to circulation and therefore the weakest when subjected to the twin pressures of online and free papers such as Metro. Indeed it was comprehensively outsold by its cut-price sibling, the i, which will remain in print and is being sold to publisher Johnston Press.
Running a print operation has a large, fixed cost that every national newspaper is struggling with – witness The Guardian’s announcement that it will cut staff. Despite what might be said about BBC3 going where the audience is (online), this is only partially true – the real reason is about reducing costs for the BBC, although whether it will achieve its planned savings is a moot point.
Plenty of titles have gone online only, while yet more are now monthly or quarterly rather than weekly. Others have successfully embraced paywalls (The Economist, The Financial Times to name but two) to stabilise and protect their revenues. The online world does call for new business models as offline advertising pounds are swapped for digital pence, and there will be further casualties in the future.
However, this is not the end of media relations that my erstwhile colleague Stephen Waddington predicts in his blog. He believes that if your role in public relations is pitching stories to journalists, the clock is ticking and you have 15-20 years maximum before you are no longer necessary. I’d agree that anyone who solely spends their time ringing up/emailing national newspaper journalists, trying to interest them all in the same story without using any differentiation or intelligence is not going to survive long.
But I don’t think most (successful) PR people are stuck in that pigeonhole. Over the course of my 20+ year career I’ve seen the move online and the corresponding drop in the number of journalists as costs were cut. At the same time the amount of straight media relations I’m doing has dropped dramatically. More often, it is about coming up with a specific story to meet the title’s needs or pitching an idea for an article and then creating it with the client. Much more revolves around content and sharing it on social media in order to build both thought leadership and SEO for clients in their specific B2B markets.
This can be much harder than simply ringing every journalist on a list and pitching the same story, but the rewards for PR are far, far greater. It embeds the profession deeper into the marketing department and links to outcomes that are based on business value, rather than a bulging book of coverage that looks impressive, but is not measurable.
Is what I do media relations? I’d say that if it involves speaking to a publication in order to gain coverage, without money changing hands, then it is media relations – and I can’t see that going away anytime soon. After all the online-only Independent will still have journalists, just fewer of them, and they will still be writing stories that companies want to be part of. Commoditised media relations may be dying, but true media relations that aims to build links between journalists and clients is as vital as ever.
The last week has seen two big stories in the world of PR, both of which I think are linked to issues the profession has in getting it across what it does – and what it cannot or should not try to achieve.
Firstly, the Vatican is rethinking its communications strategy, both to deal with the 24 hour global media cycle, and to better support the straightforward and down to earth style of Pope Francis. Given that the Holy See’s press office is understaffed and shuts every day at 3pm GMT you can see why changes are needed. Otherwise the risk is that the messages that Pope Francis wishes to get out will be undermined by lack of the right structure and mechanism to interact with the press.
The second, and much more high profile (on Twitter at least), is the case of HP Enterprise and the Financial Times. After FT columnist Lucy Kellaway included remarks made by HPE’s boss, Meg Whitman, in a piece that poked fun at foolish things said by leaders the World Economic Forum, Henry Gomez, head of marketing and communications at the company, sent an aggressive response. This ended with a direct threat “FT management should consider the impact of unacceptable biases on its relationships with advertisers.”
Rather than put up with this attack on her (and the FT’s) journalistic independence from advertisers, Kellaway went public with the exchange, to widespread support from both journalists and PR people. HPE made the situation worse by denying Gomez’s letter was aggressive and then releasing it. A quick read shows that it was exactly as described by Kellaway – aggressive and threatening. Hardly bridge building with the journalistic community.
What links these stories? In both cases the PR function is not doing its job. The Vatican is not providing the basic support that its boss/chief spokesperson (The Pope) requires, and HP Enterprises has gone to the other extreme by seeming to pander to the ego of its boss, who seems to have been upset by a tongue in cheek comment.
What seems to be missing is an understanding of what PR can, and can’t do. So, with particular emphasis on Mr Gomez, here’s a list of 5 points to bear in mind:
1 PR is not advertising
In PR you don’t pay money and therefore nothing is guaranteed. However the flip side is that your message is amplified by a trusted, independent third party (the media), making it much more powerful.
2 Not everything written about you will be positive
Particularly if you are a large global corporation not all stories will turn out the way you’d like them. Even if you prepare in detail there’s still the chance that your messages will be mangled or ignored in favour of a better story. Take the rough with the smooth, don’t be thin-skinned, and move on. If you want to hold a grudge, don’t do it publicly.
3 Complaining won’t help, it will make things worse
In the days of print, once something was published it was there in black and white and couldn’t be changed. On the positive side newspapers and magazines have a finite shelf life, meaning today’s front page story is tomorrow’s chip wrapper. Online, things are different. They are there forever (unless you can get Google to remove them from search results), but can be amended, updated and changed. I’ve asked journalists to correct stories online that were factually inaccurate – a particular favourite is when a reporter got the sex of a spokesperson wrong (after meeting her!). But there’s no way that you can expect any publication to remove or amend a piece that meets its own journalistic guidelines. As HPE is finding, complaining and threatening is just digging a deeper hole for yourself.
4 PR should be a critical friend
Communication departments need to reflect and support the business/religious organisation that employs them. But this shouldn’t be at the expense of common sense and what will actually work with the media, and other audiences. Be realistic in your aims, and if a PR person thinks a strategy won’t work they need to have the guts to tell their CEO why it won’t fly. PR people should think like a journalist – what is the story, why is it interesting and how can I get it across. Lots of agencies now employ ex-journalists, and as my colleague Chris Lee points out, there are a multiple benefits in doing so.
5 Journalism is independent
Despite living in an era of native advertising, advertorials and blurred lines between paid and earned content, companies need to remember that quality journalism is independent. So threatening to remove advertising pounds should have no impact – and doing so would be counterproductive on a number of levels. After all, as Lucy Kellaway pointed out, if the FT is the best way for HPE to reach its target audiences, then pulling ads from the publication will undermine its overall marketing programme.
What the HPE debacle shows is that it is time for PR to better communicate to stakeholders what it is we do, be robust, and think independently, rather than just believing that the CEO is untouchable. If he wants a role with an all-powerful leader, then perhaps Mr Gomez should apply to the Vatican – I believe they are recruiting…………..
The last five years has seen two, separate trends hit marketing. Firstly the use of technology has skyrocketed as digital channels such as the internet, email and social media have risen in importance. Secondly, marketing has increased in importance as businesses across every sector realise that it is central to winning and retaining customers, reaching stakeholders and engaging with external audiences.
At the risk of showing how old I am, it is worth comparing the tools I had in my first PR job twenty something years ago, and what I have now. I started with a computer (yay!), and it even had email – but that was purely internal to the ten person company I worked for. I could just about access the internet, but it was text based, rather than the colourful World Wide Web we know today. If I wanted to communicate with a journalist I looked them up in a paper-based directory and called them. If I needed to give them information I wrote them a letter, printed and posted it. The same applied to press releases, which were faxed over by clients, laboriously re-typed, faxed back to the client for checking and then sent to a mailing house for distribution. Press clippings were sent through the post by a monitoring agency, and I then stuck them on large boards to show to clients or made up physical cuttings books. And I worked for a technology PR agency, so at the advanced end of marketing at the time.
Now marketers have access to a huge variety of online tools and devices. You can find out information instantly about a journalist through the web and send out a press release to the whole world at the touch of a button through mailing software – not to be advised unless you want to get a reputation as a spammer. Email and social media have replaced the telephone as primary communication channels, while digital marketing technology is available to run campaigns from start to finish. You can target audiences based on what they have searched for, what they have talked about on social media or simply the pages they’ve visited online. Marketing has gone from being behind the curve on technology use to being one of the most active spenders on IT. Much of this has been driven by the move to digital, with a corresponding rise in status for marketing chiefs. Rather than Marketing Directors, often reporting to sales, more and more organisations now have Chief Marketing Officers (CMOs), with a seat on the board and budgets to match.
In 2011, Gartner predicted that the CMO will spend more on tech by 2017 than the Chief Information Officer (CIO). People scoffed at the time, but it looks like this is well on the way to becoming a reality. There are now more than 3,000 marketing technology vendors, all aiming to support agencies and in-house marketers in their roles. This frankly dizzying Tube map-style infographic tries to make sense of their relative positioning, but was probably out of date as soon as it was released, such is the rate of growth and innovation.
I’ve longed argued that marketers in general, and PR people in particular, need to change and embrace technology if they want to continue to be relevant. However they shouldn’t just focus on technology for its own sake, but use it to support what they do – engaging with customers and creating long-term relationships that benefit both sides. There’s no point running an award-winning Facebook page if it doesn’t link to your marketing and business objectives and is measured solely by the number of Likes it delivers.
So I’m suspicious of the latest marketing trend – the introduction of the Chief Marketing Technology Officer (CMTO). It aims to bridge the gaps between stereotypically creative marketing people and the more conservative, risk-averse IT department, finding a middle ground so that marketers don’t make the wrong choices, but aren’t held back by out of date IT procurement practices. Despite its spread in the US – Gartner says that 80% of organisations have someone filling a CMTO-type role, even if it isn’t called that, I don’t believe that marketing (or IT) needs one. It is surely better to get both marketing and IT to talk to each other, and learn how to co-operate, than to essentially try and create a half-way house of someone with the range of skills to talk both tech and marketing. If the CMTO sits in marketing you just end up with a silo-based, departmental approach, rather than looking at the wider picture of what the business needs. Technology is a vital part of every department’s role, but that doesn’t mean it is good for them to operate in isolation. Marketers should continue to improve their tech knowledge, but actually use their communication skills to talk to IT and get their help in navigating the marketing tech maze. Otherwise the risk is that money is wasted and the whole business suffers.
This month marks several major anniversaries in my life. I’ll have been married for 15 years and July 1st was the beginning of my sixth year of running my own business. Leaving aside everything I’ve learnt from my marriage, here are the top five things I’ve learnt after setting up on my own:
1. Network, network, network
It doesn’t really matter what type of business you are, the easiest way to bring in new revenues is to be recommended by someone else. That only happens if you both do a good job for existing clients, and more importantly network with the community around you. Trekking out after work to meet new people can seem a bit like going to the gym – you know it is good for you, but you can invent 1001 excuses why you should just stay at home. Just like physical exercise, you need to overrule the little voice in your head and spend time networking. At the very least it’ll get you out and talking to people with potentially similar interests, or who offer complementary services – and it will also increase your public presence and ensure companies know who you are. And networking doesn’t stop there – connect with people on LinkedIn, follow them on Twitter and make sure you make the effort stay in touch.
2. What goes around comes around
This may sound a little Zen, but I’m a firm believer that being nice to people, and helping them, stores up good luck that could help you in the future. Give people that can’t afford to hire you advice, connect them to people that can help them and be supportive of the community around you. Even if it doesn’t bring you direct business you’ll feel better about the world around you and know that you’ve made a bit of a difference.
3. Learn to let go
If you are in a business that revolves around selling your time and expertise, there’s a natural ceiling on how much work you can do. There are only 24 hours in a day, and working on all of them isn’t a long term business strategy. So be ruthless and look through your workload. Hire people to help – whether experts such as an accountant to look after your book-keeping or someone to assist with admin, they will free you up to focus on what clients are actually paying you for. And you’ll (hopefully) get your evenings back too.
4. Keep doing new stuff
I know a lot of people that have built successful businesses, get to year six and decide on a complete change of tack, such as creating their own start-up. While I couldn’t do this myself, it shows the need to keep challenging yourself and doing new stuff. On a less dramatic note it could mean offering new services, taking on clients in a completely different sector or investing in new skills and qualifications. The world is changing fast and failing to change with it will not only leave you bored, but you’ll gradually lose clients as they move to businesses that offer new services that meet their new needs.
5. Build up an ecosystem
No business is an island, and you can’t survive on your own. As well as networking, make sure you plug into people with complementary skills who can help you, whether with advice, mentoring or just providing you with a sympathetic ear from time to time. I know I’d not have built my business without the support of a whole range of people, which is another reason to spend time networking in both the real and virtual worlds.
Don’t get me wrong, the last five years has been a lot of hard work, a few tantrums and occasional worries about where the next job would come from. However it has also been tremendous fun, bringing me into contact with a wide range of interesting, innovative and sometimes quirky people. I’ve learnt a lot, enjoyed being my own boss and been able to (sort of) balance work and life. Here’s to the next five years!