The scenario was one that I had come to expect. I was having lunch with a
colleague who is VP of sales for a technology company. He was grousing about
what their 'name' public relations firm was doing (or not doing). He shoved
a document across the table and said: "They're getting $4,000 a month for this."
What he gave me was a sophomoric exercise in positioning and tag lines, meanwhile,
the company's lead generation program had been a disaster, and his sales
people where engaged in the brutal hand-to-hand combat of cold call telemarketing
to get sales for the company's new Internet product.
In another example, I saw some press on a fairly trivial topic from a software development company
where I knew the VP of marketing. The coverage was too organized to be
serendipitous. I called him and found out that he had a 'name' high-tech
public relations firm on retainer for 18 months, and the 'cutesy' press coverage
was all that they had obtained in that time period. Finally, I came across
an article by a marketing director at a high-tech firm that described how
to use public relations for high tech. The article was somewhat basic and
superficial, but I was curious as to how much of it had been put to use.
I did an online search and found that there had been no editorial coverage
or press releases on that company for several years!
What gives? Why is public relations for technology companies such a
disappointment and cause of frustration for most client executives?
Quite frankly, it is because technology public relations is not clearly
understood by most executives at technology companies. There is no 'mission
statement' for what they want their public relations to do, and it is not
tied closely enough to their sales and marketing, where the objectives are
specified and benchmarked. Often, the public relations program has nebulous
objectives of 'awareness' (which comes form the advertising community) or
'influence the influencers' - which is curious, since I haven't come across
a high-tech company yet who met their revenue goals by selling to industry
analysts. They are one of your significant audiences, to be sure, but the
public relations effort initially should be targeted at more near-term customers
and markets.
What steps can a technology executive take to get the most from their public
relations effort and advisors, and make it part of their competitive advantage?
Here are some pointers that will help to identify the program objectives
and capabilities that you need to effectively employ high-tech public relations:
Keep the public relations effort closely tied to the sales and marketing
effort. Have 12-month goals and three month milestones of tangible industry
visibility (editorial features) of your customer applications. Also, instead
of the typical, boring product and strategic alliance announcements that
quote your own executives and the 'usual suspects' of industry analysts -
try showcasing the business value of your best customers' applications.
When evaluating public relations advisors, make sure that they understand
your technology and vision. Prior to the first meeting, send them your material
or tell them to visit your web site, and then spend most of the first meeting
having them sell your vision back to you - just as they would to an editor.
Don't expect quite your own level of expertise, but suppress your natural
desire to mentally 'fill in the blanks' and just listen. Do they grasp the
major concepts and can they sell (not just 'pitch' - but proactively and
more importantly, convincingly, sell) your vision and technology to someone
else? If you're not sure, have your top sales person sit in on the meeting
as a cross check. Your top sales person knows selling skills when they see
them. If you are not convinced - neither will be an editor. Look for the
advisors' industry awareness and positioning with respect to other technology
and industry developments - the same acumen that your sales people (hopefully)
have.
Don't be seduced by the line that "we have contacts" or visions of
appearing 'above the fold' on page one of the Wall Street Journal
(at least not initially.) Have the advisory candidates draw up a list
of key trade publications (and their editorial schedules) in your major markets,
and have them walk you through a media penetration strategy - how
they would research and approach the publications, and why. This strategy
is what gets you the interviews and editorial exposure - and it is the basic
blocking an tackling of media representation, which is really selling.
Customer applications are the most effective way to sell technology. (Customer
applications differ from the more common 'happy talk' success stories in
that they walk the reader through the business problem, the value-add of
your technology or services, and the customer's buying-cycle issues. Their
development requires a keen understanding of how your technology or services
are bought - which is why you seldom see application profiles - but mostly
'success stories'.) To confirm the capability of a public relations advisor
to develop and employ these applications, have them provide you with three
representative customer application profiles that they developed for their
clients, and the resultant editorial coverage. Read through the applications.
Do you understand the technology and vision, or do they just use the right
words, but have a shallow grasp of the technical and business value-add?
What are the quality of the editorial placements? Significant or puff pieces?
Again, what you see is what you get.
Make sure that you understand the difference between 'capabilities' and 'overhead
structure' (e.g., their business structure.) Many agencies sell their overhead
structure as if it were some form of capability. It's like your lawn service
person showing up in July with the snowplow attached to their truck. You
don't need it then, and you might not use that service from them at all,
but they want you to know they have that 'capability'. Capabilities in public
relations advisors, like those in your executive team and staff, have more
to do with solving problems and the ability to execute - look for that, not
irrelevant resources that simply drive up costs.
Be very careful not to confuse consumer marketing gimmicks with
business-to-business selling. This occurs all the time, and is one of the
major reasons a lot of technology advertising and marketing is so ineffective.
The business marketing of technology products and services has more to do
with solving business problems than simply perceptions, hype or sales laziness
masked with false enthusiasm. Ask for the 'reason why' behind everything
being proposed, and make sure it keys into the way your customers actually
buy - not just the way someone thinks they buy.
Lastly - ask a public relations advisor for their definition of technology
public relations and listen carefully. The more nebulous the answer - the
more nebulous will be the services you get. Perhaps not surprisingly, a lot
of public relations providers really don't have a clear understanding of
technology public relations, much less how it can support technology
sales and marketing. They can get away with being retained by technology
companies, for among other reasons, because they are almost never questioned
on their understanding of technology public relations. This is because
the technology client often has no clear goals or objectives for the public
relations program - but allows that criteria to be given to them (directly
or by default) by the advisor. If you hear the line 'you just don't understand
public relations' - it's a smokescreen, chances are they don't either. This
is one case where you get what you specify - not necessarily what you pay
for.
Public relations, when used effectively, can help to create competitive advantage
and more importantly, help to shorten the technology or services sales cycle.
It can be the most powerful sales-support tool for difficult-to-sell products
or services. However, the effective use of public relations services requires
that the purchasing executive be somewhat of an 'informed buyer' of those
services. The executive has to know what capabilities they are looking for
to help them use public relations as an effective sales and marketing tool,
and should be prepared to provide both direction and identify benchmarks
for the effort.