Client’s Exit Paves Way for New Competitor Business

The Win

When a client leaves a market it provides a unique opportunity for the PR agency to pursue business from the client's local competitors. Sawchuk, Brown Associates' (SBA) solid
track record with Kaiser Permanente, which exited the New York market last year, convinced MVP Health Plan that the agency could handle its PR needs. After working with MVP on a
few small PR projects, SBA landed a one-year retainer at $4,500 per month.

SBA is developing PR and community relations strategies to support MVP's expansion plans throughout New York and Vermont.

Main Competition

MVP considered four agencies.

Pitch Team

David Brown, president; Pamela Sawchuk Brown, president; and John Pierce, VP public affairs.

Assignment

In 1998, MVP recognized the need for more proactive PR. Back then, its PR efforts were primarily reactive, handled in-house and focused on crisis communications, says Amy Ertel
Bellcourt, MVP's chief marketing officer.

One high-profile crisis, in particular, convinced Bellcourt and her executive management that they had to reevaluate how they used PR.

The case involved a health plan member who disputed a coverage decision that generated extensive media coverage and commanded a significant amount of Bellcourt's time.

After managing that crisis, MVP realized it needed an agency that:

  • understood the managed care market;
  • had strong community ties with business leaders; and
  • was capable of working with the regional media on a wide range of healthcare issues - from crisis situations to pitching enterprising story ideas.

Instead of issuing a request for proposal (RFP), Bellcourt opted to consider agencies that she was familiar with, based on agency growth, client recommendations and account
team capabilities.

"The old RFP model of selecting an agency is an ineffective way to get the best agency. I spent a lot of time talking to people in the community [about potential agencies],"
says Bellcourt.

Presentation

Although SBA's work with Kaiser helped make it a shoo-in for MVP's business, the agency's community work and formal proposal sealed the deal. Prior to being selected by MVP:

  • the agency made presentations to the local American Marketing Association chapter, (to which Bellcourt belongs);
  • David Brown spoke to an MBA class, taught by Bellcourt, on the importance of community relations; and
  • the agency handled a small PR project for MVP that involved promoting a new location.

In addition to these efforts, SBA also submitted a formal written proposal that positioned the agency as a qualified PR strategic partner. The proposal focused on how SBA could
work with MVP's advertising agency on integrated marketing efforts and where the strongest community relations opportunities exist.

Pitch Tips

When you're faced with the prospect of a client leaving your agency, it's important to quantify and qualify the benefits of the relationship to prospective new business.

In SBA's case, Kaiser allowed the agency to pursue relationships with competitors while it was in its final phases of exiting the market. During this transition, SBA suggests:

  • highlighting how adaptable the agency is to the competitor's corporate culture;
  • demonstrating your agency's industry expertise - not just with the exiting client's business;
  • networking and providing strategic advice on how the potential client can expand its community presence; and
  • understanding when to move on. If a client is scaling back its business in a market, it's a good time to evaluate the relationship and determine whether it's best to sever
    the ties to pursue competitive business opportunities.

(Sawchuk, Brown Associates, David Brown, 518/462-0318; MVP, Amy Ertel Bellcourt, 518/388-2317).

Sawchuk, Brown Associates

Founded: 1979

Location:Albany, N.Y.

Focus: PR, public affairs and marketing communication

Healthcare Clients:Corporate Health Dimensions, St. Peters Hospital, Progressive Insurance

Phone: 518/462-0318

Web site: http://www.sawchukbrown.com