Measurement No Longer Optional

It wasn't so long ago that the definition of PR measurement hinged on pounds of clips or, worse yet, "going on a hunch." But the industry's evolution from rote publicity
toward integrated communications programs places PR in the same league with more numbers-driven marcom disciplines and forces greater sophistication in the use of communications
research as a universal planning tool.

Industry veterans have largely warmed up to measurement as a means of justifying the communications function to senior executives (now an increasingly critical task in the face
of budget cuts). Last year, an informal online survey conducted by research firm Delahaye Medialink found that the largest number of respondents (46%) cited measurement's primary
raison d'etre as proving PR's effectiveness to hatchet-wielding CEOs.

"In today's marketplace, everything we do had better contribute to the bottom line -- and I don't just mean hoping that it is, but ensuring that it is," says SVP Ed Mattix,
public relations and brand management at Sprint in Kansas City, Kan. "Otherwise, we're just wasting human resources and financial resources."

Sprint perceived its failed merger with MCI Worldcom as a wake-up call to unify and refine its messaging strategy on a grand scale and reposition itself not simply as a
wireless and long distance carrier but as a diversified technology company that offers a broader plate of services. The telecom giant has since tapped a handful of vendors
(Edelman's PR 21 among them) to develop a proprietary, automated database that will unify, track and evaluate its various communications programs and outcomes.

It's a tall order, Mattix admits, but a necessity for the company which employs some 275 communications professionals across multiple business lines, and in the past, has
suffered the effects of siloism. The tracking system will be shared via the corporation's Intranet by specialists in media relations and internal communications, as well as those
handling sponsorships, brand management, event planning and other marcom functions.

Mattix says Sprint's measurement database will enable communications staff to track how various messages are playing out with the media, analysts, shareholders and other key
influencers on a daily basis, and to adjust strategy incrementally, albeit uniformly, without waiting for quarterly reports - by which time it's too late to make effective
changes. Automated functions also will make it easier to generate reports that correlate metrics such as spikes in media coverage with increased calls to toll-free customer
service lines.

No Bucks, No Glory?

Sprint's massive online initiative typifies the reason so many communicators shy away from measurement entirely. It can be pricey and intimidating. "People always say the
research is going to cost more than the PR program itself so I can't afford it," says Bruce Jeffries-Fox, who served as the resident measurement guru at AT&T before launching
research firm Insight Farm (a spin-off company of Burrelle's and VMS) last October.

"It's important to compare the cost of the research not with out-of-pocket expenses, but with what's at stake," he explains. "For example, in a regulatory situation, if the
FCC votes a certain way, it can mean billions of dollars for a corporation. Maybe you spent $50,000 on research to make sure your key messages were going to resonate [with
commissioners], but look at [the return on investment]."

Jeffries-Fox is quick to add that communications research needn't always be expensive or complicated. "Sometimes all you have to do is walk down the hall and knock on the
market research department's door." Piggyback questions onto a survey they're planning or simply check out their data library. "Often, there's tons of groundwork that's already
been done by marketing people that's just sitting there on the shelves. The biggest barrier [to more integrated measurement programs] may be a lack of internal relationships," he
observes.

Another option is to look for correlations along what Jeffries-Fox calls The Grand Staffr. "It's like in music where you have musical lines for different instruments," he
suggests, "all you have to do is line up important market events on one of those lines and map in [variables] such as news coverage, stock price and any other PR activity at
specific points in time." In doing this, "you can eyeball what's causing what without really fancy statistics -- basically just saying, 'Ok, every time this happens, that
happens.'" This guru says it's not expensive at all, assuming you've got streams of data readily available for comparison.

Work with What You've Got

On the front end, even the most rudimentary research can pre-empt a disastrously misguided messaging strategy. CEO Tom Gable of The Gable Group, San Diego, recalls how a simple
qualitative audit of external stakeholders nine months ago helped shape the positioning for ChemNavigator.com, an e-commerce start-up that specializes in compounds used for drug
research. Company execs had hoped to carve out a niche in the marketplace by promoting lower price points. But informal surveys revealed that the e-tailer's target customers were
driven less by cost concerns than by interest in the breadth and quality of materials. Armed with such insight, the PR strategy took a hairpin turn.

Gable says his firm conducts internal audits gauging executive and employee perceptions for around $5,000. Similarly, external audits -- usually comprising phone interviews
with reporters, analysts, regulators and other key influencers -- go for around $10,000 to $15,000. It's a small price to pay compared to shelling out months of out-of-pocket
expenses for PR campaigns that miss the mark.

It all boils down to accountability. One way to demonstrate this is to prove that a PR campaign has moved the needle at the end of the day. "Another way to address
accountability is to demonstrate that you're looking for alternatives," says Jeffries-Fox, "to show that you're not just making assumptions and shooting from the hip. It's
important to question, 'How do I know this is the best message?'" And if you aren't sure, find out.

(Ed Mattix, Sprint, 916/624-3000; Bruce Jeffries-Fox, Insight Farm, 800/631-1160; Tom Gable, The Gable Group, 619/234-1300)

What Research Reveals

Tom Gable, CEO of The Gable Group in San Diego, says that even the most basic audits (interviews with employees, reporters, analysts, shareholders, community leaders and other
influentials) can reveal telling insights about a company that can be parlayed into more effective strategic communications. His firm uses the tactic to unearth perceptions
about:

  • Business vision and mission
  • Corporate culture
  • The state of an industry
  • Competitive differentiators
  • Superstars inside the company
  • Financial strategies
  • Growth plans
  • Market leadership
  • Corporate citizenship
  • Community involvement

To maintain client confidentiality in external audits, the agency tells interviewees such as analysts, customers and reporters that it is conducting research for an industry
white paper.

(Tom Gable, The Gable Group,619/234-1300, http://www.gablegroup.com)