Cutline Speaks
Our Economic Pearl Harbor
posted by Megan on February 5, 2009
If you haven't heard, that's what Warren Buffett is calling our current economic situation – an economic Pearl Harbor. Descriptive? Certainly. Frightening? Absolutely.The kiss of death? No.
The last time we had a significant slowdown in the technology sector was between 2000 and 2001 when the technology bubble burst. I vividly remember a period in 2001, right after 9/11, when we got a call almost every day from a client who needed to cut his or her budget. And that was the good news: they weren't going away, just cutting back. We were lucky, and fortunately we were as prepared as possible.
This time around, we're prepared as much as possible once again because this is what we live by at Cutline:
- Treat your clients right - all the time. It sounds simple, but PR firms who don't treat clients well in the good times are in big trouble in the bad times. I know too many firms who decide client service is twice as important when their businesses are hurting. It shouldn't be. There are certain things that should be a given: treat clients fairly; offer counsel that makes sense, not that makes money (if you do the right thing, money always follows); deliver results; address issues head-on; and be responsive.
- Deliver great work. There's no replacement for it. That means understanding a client's business inside and out, offering advice and ideas without being asked, and keeping the current economic situation in mind. PR firms are not the only ones who are feeling the economic pressure, clearly. We need to be mindful of that, and look for opportunities to help alleviate our clients' pressures by working with them to determine ways to deliver results for less money or help them demonstrate PR's success and value to management.
- Don't retreat. Now is not the time for radio silence. Having a close working relationship between a client and an agency is the best way to ensure that issues are addressed. No one likes to have tough budget conversations, especially in a bad economy, but ignoring issues won't make them go away. Instead, PR firms should be talking openly and often with their clients about budget pressures, internal demands, and changing priorities. Working together, you should be able to find a solution that benefits everyone.
- Stay efficient. Now is the time to reevaluate how you do things. Are reporting processes efficient? Are meetings valuable? Are you delivering the right results, or simply getting a bunch of stories? In other words, PR firms should only be billing for things that are useful and that have a valuable impact on the client's business.
These may all seem like small things, but they add up. They give me peace of mind that we still have some control in a time when things may seem a bit out of control.
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Comments
February 05 2009 - 06:33 PM | by Chris
We do all of those things and more. Common sense people, especially “treat your clients right all of the time”
February 05 2009 - 06:56 PM | by Meghan Hughes
Thanks for this post! These are great reminders to stay focused on core values that lead to great results. Simple and effective.
February 05 2009 - 07:23 PM | by Christopher Voorhees
I work for a streaming media company that serves city, county and state governments by helping them run their meetings and improving public transparency.
As an organization that depends on the budgets of the public sector, moving toward a more efficient plan of attack rings true in our office. We are not without competitors, but what seperates us from suffering the significant pitfalls of the struggling economy, I must convey that we have never waivered from the points made above, especialy the way in which we treat our customers.
Sure, a meeting may have gone on too long or not had enough “take away” but that is to be expected regardless of the economy.
With all due respect to Mr. Buffet, the points articulated above are key regardless of the economic climate.
In our world, it is no coincience that we have a 97% referability rate and client satisfaction that trumps even the most tried and true organizations. We are currently 9 years old as a company, and the key has been, and always will be, treating our customers as family.
Products experience problems, companies experience set backs, the market experiences shifts, but the way in which a customer is treated on a day in and day out basis makes all the difference in the world...in fact, usually the difference between growth in the hard times, and utter failure. Common sense? Sure. But to think you treat your customers well, and to know you treat your customers better than any company they have ever worked with (and we hear that all the time), continues to be the foundation for success ALL of the time, no matter that climate of yesterdays, todays or tomorrows economic climate.