Proof That PR Drives Sales!

This week’s PRWorkbench guest blogger is Thomas Scott, VP of Operations for Showhomes. Thanks to Thomas for these great observations made at last week’s Franchise Update Conference.

Franchise Industry Execs Miss the Opportunity to Leverage Franchise PR to Drive Sales

P1040751300 franchise executives converged on the Drake Hotel in Chicago this week for three days of intense evaluation about the state of franchise sales and dialog about best practices that drive results in today’s market. This much anticipated Franchise Update Conference centers around industry reports on numbers of franchise units sold, lead sources for the year, and cost per franchise sale.

P1040747

 

This year’s theme, Mission Possible, held lots of promise as the previous year has been a wasteland for many companies. This year three big issues converge into a perfect storm that creates lots of choppy waters for franchise sales:

 

  1. Fran Data experts projected that the franchise industry will have some truly choppy waters for the next four or five years due to lack of bank financing and shaky loan underwriting making credit hard to come by
  2. Traditional powerhouses of franchise sales lead generation have trailed off significantly; franchise portals in particular are not delivering the quality leads they once were
  3. The dramatic shift in the way people communicate and build trust and how this impacts the rise of social media left more than a few companies struggling to connect the dots

A big disconnect with franchise sales lead generation centered on an old-school tool: Franchise PR. Here’s a list of lead sources for franchise sales this year:

Lead Sources for Franchise Sales (where leads for franchise sales come from)

  • Internet          34%
  • Referrals          28%
  • Brokers            17%
  • Print                  8%
  • Other               13%
  • Trade Shows      3%
  • PR                    3%

Sources of Closed Franchise Sales (Where the leads that actually closed came from)

  • Internet          50%
  • Brokers           16%
  • Trade Shows   13%
  • PR                 11%
  • Other             10%

Franchise companies only generated 3% of the total leads for franchise sales this year. Only 3%! Those measly 3% of leads resulted in 11% of the total industry unit sales this year. 11%! Making matters worse, almost half of the companies represented at the Franchise Update Conference were not using PR to generate sales leads. HALF!

The Franchise Update report also gave out projected average budgets for franchise development: the average company will spend $162,000 on its total budget to sell franchises this year. PR was way down on the list of expenditures. If PR done poorly and without consistency produced 11% of the franchise sales last year, what should you budget to grow a franchise system?

Franchise companies need to wake up – PR if used correctly by someone that understands the social media shift is a powerful tool for franchise sales lead generation. PR firms need to wake up too. What PR worked 20 years ago and even what worked last year DOES NOT WORK in today’s market.

Here’s the issue: publicity is great. Publicity will get you in the papers and can help with search engine optimization and Google search results. Publicity can generate a binder full of clips. Franchisees love publicity because it’s great for the ego. Publicity does not, however, generate franchise sales. Old-school press releases about store openings, expansion plans and staff changes don’t have the oomph they once did in today’s social media market.

PR can be used to aggressively drive your franchise sales if you focus on telling your story and driving the social media conversation about what you do. We’ve successfully done this at my company, Showhomes, and I listened to Stan Freidman, CEO of Retrotax talk about how he has used it to get his new company off the ground.

Success with PR centers around the story you tell. If you can get people talking about your sales effort in social media arenas like Linkedin and Twitter, you can get reporters to bite and that will lead to lots of online trust and credibility. This is crucial because candidates are at their lowest trust level any of us have seen.

They call this the ‘Great Recession’ for a reason!

For more information from Thomas Scott, please contact him at:

Thomas Scott
VP Operations, Showhomes
615-483-4923
tscott@showhomes.com
www.showhomes.com
Twitter: @showhomesthomas
Linkedin: http://www.linkedin.com/in/thomscott

Apple and Apple PR

 
apple-logoApple-logo9
 

 The Biggest Release That Wasn’t Released…Yet

 

 

 

 

Many Beatles and iTunes fans spent the past few weeks speculating that The Beatles catalog would debut on iTunes at the same time as the remastering of their catalog on CD and the debut of Beatles Rock Band, making a perfect hat trick. Many in the PR community also anticipated this cross-promotion no-brainer.

However, the lack of an iTunes announcement on 09.09.09 made the Apple gathering a non-event for some. But just wait…the delay will create yet another publicity-friendly event in the future. And, even more important to Apple Inc and Apple Records, a future Beatles / iTunes event will ultimately drive more sales via more product downloads.  Steve Jobs even said, “we’ll see you soon.”

This masterful delay didn’t waste a great event and allow the iTunes availability to get buried in the PR and ad frenzy of Beatles CDs and Rock Band by Apple Records or the new iPod launches, iTunes 9 update, and the return of Mr. Jobs by Apple Corp.

After all, September is the time for releasing holiday gift choices (CDs, video games, and new iPods) not downloadable songs which won’t really drive holiday sales. It’s very smart of the two Apples to delay a deal and announcement until 2010 or later.

 

A Brief History of Beatles Repackaging 
 
The 2009 remastering project is not the first time the band’s records have been repackaged and sold amid a flurry of positive PR and fan response. If you were born post-Beatlemania, chances are your first Beatles record was not Meet The Beatles or Sgt Pepper’s, but was one of these previous top-selling collections:

2006 Love200px-LOVE

Love is a remixing, editing and splicing of a hundred or so Beatles tunes mashed together as a soundtrack for Circe du Soleil. It sounds like blasphemy to purists, but being produced by Sir George Martin makes it not only legitimate but fun to hear. I think the platinum-selling Love was also was a test for the 2009 remastering project.

 

 

 

 

2006 Capitol YearsBeatlesCapitolAlbumsVol1albumcover
200px-BeatlesCapitolAlbumsVol2albumcoverThis remixing of the first 8 US Capitol Beatles albums was the first time some of the US versions of Beatles records made it to CD.

 

 

 

 

 

2000 The Beatles 1200px-The_Beatles_1_album_cover
This is virtually the same set of tracks as 1982’s “20 Greatest” released on CD and promoted to the next generation of fans. The result: over 10 million copies sold in the US alone!

 

 

 

 

 

1995-96 Anthology 1, 2, & 3

200px-Anthology1coverNot truly a greatest hits compilation; the Anthology series featured alternate versions, demos, outtakes, and historical live performances. It also served as a companion piece to the much-hyped ABC documentary series of the same name. The Apple and Capitol promotional machine did phenomenal job making sure every person on in America knew about this release

 

 

 

1988 Past Masters Volume 1 & 2
1988 Beatles Box Set200px-Past_mastersbeatles
This release was significant as the first complete box set of all albums on CDs plus the two Past Masters CDs of singles and B-sides not available on any album. This set is virtually identical to the 2009 release but not remastered.

 

 

 

 

1982 20 Greatest Hits200px-20GreatestHitsalbumcover

Absolutely nothing special about this release – just repackaging the same ol’ songs and selling millions of copies to a new generation of fans, that’s all.

 

 

 

 

1982 Reel Music200px-ReelMusicalbumcoverfront

In the 70’s and 80’s, Capitol seemed to like to have a twist or theme to tracks repackaged and compiled. I guess this gave consumers a reason to care. This one featured only music from the Beatles movies (???). This also featured a “new” track: a medley of the Beatles movie songs taking advantage of the Stars on 45 fad happening at the time.

 

 

 

1977 Love Songs200px-TheBeatlesLoveSongsalbumcover
The repackaging theme for this compilation was obviously the band’s love songs and ballads.

 

 

 

 

 

1976 Rock ‘n’ Roll Music200px-BeatlesRockNRollMusicalbumcover
The repackaging theme for this inferior compilation was old-time rock n rolls cover tunes written by Chuck Berry and others. I assume the thought behind this choice was the fact that these cover tunes were not included in the 1973 Red and Blue albums below, even though “Twist & Shout” and others were some the band’s most popular early records. These tracks were poorly selected and remixed and the packaging looked substandard. It’s interesting that this compilation itself was repackaged four years later and split into two budget-priced albums.

 

 1973 The Beatles 1962-1966 (aka “The Red Album”)200px-Beatles19621966

 

These are the granddaddy of all compilations, great hits, and repackaging! These mega-selling albums were #1 worldwide instantly and sold well for the next two decades.

 

 

 

1973 The Beatles 1967-1970 (aka “The Blue Album”)200px-Beatles19671970

 

 

 

 

 

 

1970 Hey Jude200px-Heyjudealbum
At the time, Apple and Capitol tried to spin this release as a new Beatles album (in the US only). But the only thing new was the packaging. All tracks were previously released as singles or b-sides, but never included on previous Beatles albums. The plan worked, with the record reaching #2 on the US album charts.

Death of PR Spam

PR Spam took a few more hits last week. First, blogger Gina Trapani created a new wiki of PR agencies who have spammed her via press release. 
 
Secondly, MatchPoint rolled out a new version: MatchPoint v1.5. The anti-PR Spam tool will keep users off of Gina’s list!
 
 PR Spam
 
PR Spammers (and the over-priced PR vendors who enable them!) typically build lists of journalists (based on beats) who may or may not have ever written an article or blog related to the Spammers’ blast press release.
  
MatchPoint allows PR pros to identify the most appropriate reporters and bloggers based on what they have recently written, not by outdated information like beat or title.
 
The true PR Spam killer is this: after finding an appropriate journalist, users can engage them one-on-one directly through MatchPoint. The personalized, custom message can range from a simple pitch note to a full multi-media press package.
 
Other new enhancements include the ability for PR pros to monitor specific journalists, create notes on follow up activity, and evaluate success of campaigns with detailed tracking reports.
 
MatchPoint is now giving journalists the ability to evaluate the usefulness of story pitches and rank the sender. This new system was designed to weed out PR Spammers and open a dialogue between professional PR practitioners and journalists.
 
PR professionals can get a free ten-day trial at this link. PR Spammers should ignore this link!

Media Measurement: Focusing on What’s Being Said

 

This week’s PR Workbench post is by guest bloggers Brad Snyder and Maddie Forrester of Perception Metrics. Perception Metrics delivers data-driven media insight quickly and cost effectively to brand managers, public relations professionals, and their clients.

 


Looking at what’s being said, not just who is saying it (how many times)

When people talk about media analysis, they’re normally discussing results measurement – figuring out what impact they’ve have had and proving it to their clients.

But considering the amount of time and resources that go into creating a brand identity, there is surprisingly little listening done in advance, before brand books are signed, sealed and delivered. 

Imagine, for example, that you are at your local pub and you overhear people talking about your company and its competitors. Without a doubt, you’d be most interested in what was being said, not just who was doing the talking or how many times they mentioned each product or competitor. You might also notice their overall tone, of course, or how much of the conversation was focused on which company, but you (and your boss) probably want to know how, in this conversation, each brand is described.

The same principle should be applied to media analysis. So much of our industry focuses on “how good” the conversation is, overall, or “how much” of it there is. But media analysis can also delve into what, exactly, is being said. That can help you clarify errors, affirm and repeat positives, and share your perspective. You can also compare the ways that your company’s perception (what people think it is) is different from its projection (what you are saying it is)…and hopefully, you would use this information to make decisions about how your organization should act next.

When the conversation you’re “overhearing” is actually the sum total of newspapers, blogs, message boards, Twitter, and the TV – well, you have to boil it down quite a bit to understand what’s going on.

One way to do that is to look at which messages are unique to each company, and which are shared.  Check out this graph – and if it gives you flashbacks to middle school, I’m really sorry. It’s a Venn diagram that looks at the unique and shared positive messages in a media collection describing three retail clothing stores (names have been changed).
 

clip_image002 

You can see right away that the conversations are really quite different. In this conversation, “Heritage Apparel” was the least unique; it has the most generic of the brand identities.  But it also means that “Heritage Apparel’s” identity is similar to the overall competitive landscape.

On the other hand, “Retrofitters” owns the most unique messages. It has a fairly strong brand identity in this conversation. And some of its messages – it was the only one described as “cute,” for example – are really nice to own.

“New Vintage’s” image is different. People are using words like “inspired,” “famous” and “attractive” to describe it. It also is more often described as “favorite,” “popular” and “trendy” than Retrofitters.

 
Here’s another example – one with a more political application.  This Venn shows how different media groups describe controversial Venezuelan president Hugo Chavez.  Rather than comparing him to his competitors (seeing as how he’s president-for-life), it compares the conversations happening in different parts of the world. These are only the negative messages:

  clip_image003

 

The coverage we get can vary wildly, depending on the perspective of the publication. Hugo Chavez very much embodies this. The entire community agrees on the facts – the study was done in November of 2007 when Chavez advocated for a referendum to allow him to run for president indefinitely, froze diplomatic relations with Columbia, and accused the CIA of orchestrating a coup. 

The Venezuelan media focused on the events in the country.  They acknowledged “criticism,” the “conflict” between Venezuela and Columbia, and a “clash” between pro- and anti- Chavez protestors.  US media used significantly stronger language, with messages like “dictator,” fear” and “suffer.” The non-US International media was considerably more cordial, describing Chavez as “controversial” and saying he was going “too far,” “too fast.” 

When you look at what’s being said (rather than how much is being said) you can position your brand image in a way that is unique and relevant.  Join the discussion: how would you use this data? What would you do if you were each of the clothing retailers? How would you advise Hugo Chavez?

Bulldog Media Relations Summit – Update

 
Yesterday, our team at eNR had a lively discussion on the direction of social media and public relations lead by co-developer of our MatchPoint service, Peter Himler of Flatiron Communications.
 
For anyone attending the Media Relations Summit in New York this weekend through Tuesday, Peter has organized a Tweetup on Monday. Click here for details and registration: http://nyctweet.eventbrite.com/

 

Crown Plaza Times Square - Home of Media Relations Summit 09
Crown Plaza Times Square - Home of Media Relations Summit 09

 

Bulldog Media Relations Summit 2009 – Prologue

 
Media Relations pro’s – are you heading to the Bulldog Media Relations conference in New York this weekend? Why not?
  
This year’s show has tremendous potential with keynote speakers such as news icon Dan Rather and popular anchor / consultant Dan Abrams. 
  mr09logo
Please check back here throughout the weekend and week as we’ll be posting updates, photos, Tweetup details, and commentary.
  
 What are you looking forward to seeing at this year’s show?

Newspapers: Trend or Term?

  

In an earlier posting, I opposed the current Public Relations industry panic that “the media is dying.” I maintain that the media is alive and well; it’s evolving. Those of us working in the PR world need to promote that fact that despite cutbacks and right-sizing, the media, including newspapers, is more important than ever.

 

One way to do this may be to update the definition of terms. Let’s start with the word newspaper.

 

Most people still see a newspaper as news printed on paper. I submit that even those media outlets that stopped printing and distributing news on paper in favor of an online-only model can still be called newspapers.

 

We’re already using the word publish with an online meaning. When I’m finished writing this piece, I will hit a button labeled “publish” so you can read it via this blog site. Not many years ago, the word “publish” meant physically producing and disseminating printed pages for public consumption. We’re already far beyond that definition in this digital age. We’ve updated these terms in our lexicon:

 

  • A file is no longer limited to something in a manila folder
  • To dial-in or dial-up does not require the use of a rotary phone
  • A press kit does not – and should not! – need to be a wasteful and environmentally unfriendly box of junk that PR folks send to journalists who throw them away
  • A record can be a compact disc, not only vinyl
  • An album is a collection of songs, not only on vinyl

 

Those last two are still hurdles for some people! Let’s all say it together….CDs are records…albums are collections of songs….

 

 
Here are a few others to think about. Is “The Office” a Television show? Of course it is, though millions of us do not watch it on a Television but via iTunes, Hulu, DVDs on a laptop, or on a monitor on an airplane.

  

Are companies like Best Buy or Toys R Us only retail stores, or are they suppliers of goods both digital and physical? I say the latter. I’m a huge Toys R Us customer in my nearly three years of fatherhood, yet I haven’t stepped into a brick & mortar Toys R Us location since I was a kid.

 

So why are we limiting the term newspaper to exclude digital editions? We need to stop hitting the panic button every time a favorite newspaper or magazine goes online-only and realize that the newspaper lives on. And in the digital world, that means lives on forever.

 

PRWeek Goes Monthly

 

PRWeek has just announced that that it will soon be a monthly magazine. This was part of a slew of announcements about revamps of the online edition, e-newsletter, and blogs.prweeklogo1

 

See the full announcement here:
 

http://www.prweekus.com/PRWeek-announces-weekly-online-edition/article/130669/

 
This move makes sense to me, especially combined with the online changes and additions. 

 
What are your thoughts on PRWeek and other PR industry publications? Are they still near the top of your reading stack? Or have you already seen most of the content online by the time it arrives?