Last October 9, PR Sequoia Capital hosted a now-famous meeting in Silicon Valley, with about 100 startup CEOs in attendance. The message to the portfolio companies was this: We are in a serious economic downturn. Immediate, decisive and swift action is required, along with frugal management of expenses. Cut spending. Cut fat. Preserve capital.
Among the tough words conveyed by Sequoia to their portfolio CEOs was this strong warning: “Nail your sales and marketing message. Pound your competitors’ shortcomings. Take the offensive. In a downturn, aggressive PR and communications strategy is key.”
The down side of going dark is much greater than any short term savings experienced.
In bad economic times, all companies make budget cuts, and some will indeed make the hasty decision to cut public relations budgets. In the PR industry this is called “going dark,” an immediate elimination of exposure for your company and its products or services. This impulsive decision has multiple negative consequences- not only will lead generation dry up when you “go dark,” but the lack of media exposure will undermine the confidence of your existing customers and investors concerned with your company’s long-term viability and value. When you go dark the one thing people will notice about you is your absence!
When times are tough and universal press release business is slow, PR PR is the very last thing that ought to be cut. As the CEO of a PR agency, one might think I am biased in my opinions. So let me repeat that it was Sequoia Capital who mandated to their portfolio CEOs to “Take the offensive – in a downturn, aggressive PR is key.”
Drive Sales with a Persistent Voice
Keep the market fully informed of your company’s activities even, universal PR and especially when things get extremely tough. With other companies making the mistake of reducing their PR budgets, PR your own efforts can make even more of an impact. That is especially true for entrepreneurs who must stand out in the crowd to be noticed by VCs.
Evolve your company’s message to make the most of today’s economic conditions:
* Find every possible attribute of your products that represents an ability to reduce costs for your customers. Use your marketing budget to clearly demonstrate what sets you apart.
* Branding in a tough economy matters, and one of the most important aspects of differentiation and success is developing a persistent voice through PR.
PR is also a major driver for sales, so don’t leave it to your sales team to have to educate potential customers about your product. Continue to invest in a good PR program so your sales team hears, “Yes, I’ve heard of you guys,” when they make a cold call.
Solid PR positively impacts your online presence and SEO
As a measurable discipline with huge potential for strategic value-add, PR will be your secret weapon for designing and executing efficient, cost-effective marketing. One significant example of value-add is the positive impact a good PR program can have on search engine results, and visibility on search engines can be a critical component for any company today – driving leads, sales and universal press release vital business partnerships. High-quality PR-based content provides additional search engine exposure and press release is a source of in-bound links that search engines love.
Outsourcing PR is More Effective
Outsourcing PR to a good agency is always more effective and press release more cost-efficient than trying to get the job done in house. The right PR agency partner brings objective, strategic value to your business, especially around message articulation and focus, PR analyst and media outreach methodologies, and an out-of-the box view of how your technology fits in the larger market ecosystem context.
Furthermore, companies sometimes think they can create and manage the entire PR process including:
* Maintaining all the contact databases
* Writing the pitches, press release releases, and articles
* Reaching out to analysts, media and conferences
But these tasks get de-prioritized when PR goes “in house” and the distractions of corporate duties become overwhelming. Opportunities are missed that your agency will be on top of with an independent perspective that can be a deeply competitive advantage for your company.