By Gene Marbach
A quick look at the headlines on any given day will tell you that times are tough. Corporate managers are pinching pennies and looking to maximize the value of their
communications budgets. On the agency side, new business development efforts become even more critical as clients are reluctant to change in light of the investments required in
bringing a new firm up to speed on the business. Given this backdrop, every new business opportunity takes on greater importance as the competition intensifies. Consider the
following techniques to help win new business during a downturn:
- Embrace the hated RFP. One of the fastest ways to empty a room full of PR executives is to announce that an RFP has come in. Some firms have policies against
responding to these documents out of fear of distracting managers from tending to existing clients. However, RFPs do present an opportunity, assuming your agency matches the
criteria set forth.
Responding to an RFP doesn't have to be an onerous task as, for the most part, they tend to request similar information (billings, client roster, office locations, services,
etc.). Divide the sections among staffers according to the expertise sought. Put one senior exec in charge of the final edit to insure uniformity in style and that all of the
information is included. Submit the RFP on time, or else all that work will have been for naught.
*Listen. There seems to be some unwritten rule that says we in the PR business must talk constantly. We seem to forget that the process of communications involves listening as
well. When a prospect calls, follow this simple rule: Listen. Find out what his problem is by asking questions. Home in on his previous agency relationships and see what worked
and what didn't. Learn about his background and then discuss how your firm can help, and offer to briefly discuss relevant case histories. The object here is to secure a meeting
to present your ideas and solutions.
*Offer menu options. Recently, Applebee's, an operator of casual dining restaurants, has been offering a special--a three-course dinner starting at $9.99. They basically hope
that customers attracted by such an offer will come in and be tempted by other more expensive items on the menu and /or order alcoholic beverages.
Likewise, in these economic times, agencies need to be flexible with pricing; however, managers need to be mindful of profitability and avoid the "all-you-can-eat buffet"
syndrome and budgeting too aggressively. In presenting your plan, clearly outline the elements of a core program and what it will cost. Discretionary initiatives with estimated
budgets should be listed separately. This approach will let the prospect know that your firm has capabilities in a variety of areas and afford him the opportunity to prioritize
the company's needs accordingly and within his budget.
*Practice due diligence. With the widespread availability of information via the Internet, there is absolutely no excuse for not being thoroughly prepared for a meeting. If the
prospect is publicly traded, review the filings with the Securities & Exchange Commission. Run a media search. Learn everything you can about the prospect, his business and
the competitive landscape. Also, study the bios of the executives you will be meeting as there may be some common experiences with members of your team. This will make you look
smart and help frame intelligent questions during the meeting.
*Practice prospecting. Referrals can come from a variety of sources such as attorneys, investment bankers, accountants, vendors, friends, clients as well as former clients.
Systematically work your contact base and expand it by joining industry trade associations and playing an active role in the group's committees. In between telephone contacts,
keep your contact base active by sending them interesting articles, and highlight the potential implications for their businesses. Also, send along interesting news about your
agency (awards, new appointments, etc.).
*Love the ones you're with. Do good work for existing clients, as receiving a referral from them is one of the greatest compliments an agency can receive. It means your firm
has become essential and is regarded favorably; if the case were otherwise your client would not stake his reputation on a recommendation. In addition, smart work gets noticed in
the marketplace and may stimulate inquiries.
While not exhaustive, these are some ideas to use during these difficult economic times. If you really think about it, these ideas will work during any economic condition. PRN
CONTACT:
Gene Marbach is group vice president at Makovsky & Company. He can be reached at [email protected].