During an economic downturn, many organizations look for ways to trim expenses until revenues pick up again. Typically that means slicing “non-essential” activities…those that are profit-spenders, not revenue-generators.
One of the first areas to be cut is public relations. But that’s not always a good idea. Here are three reasons why:
A revenue-driven public relations program will drive sales, which are needed when revenues are lagging.
Positive and consistent exposure for your company and products will assure customers that they made a good choice, which results in higher customer loyalty and referrals (an extremely cost-effective way to market!).
Uncertainty breeds discontent among employees. To protect this asset, organizations should make an effort to communicate regularly with employees about the status of business. A positive side effect of this is increased employee loyalty.
It’s easy to determine if you should keep or cut your public relations program. Simply ask yourself: Does my public relations program more than pay for itself in sales generated?
Up next: How to use public relations during a recession.