Since most organizations have outsourced many of their PR/communications tasks to outside firms, picking an effective one is crucial. Clutch and Fraser Seitel have good advice.

Mike BearesMike Beares

We welcome a new player to this area, Clutch. With a 21-member staff headed by Mike Beare, formerly at Unisys, it is applying numerical measurements to help gauge the effectiveness of a PR firm.

Evidence that PR firms are growing is that 17 of the 25 biggest firms taking part in the O’Dwyer rankings grew in double figures in 2015 topped by Edelman, which grew 7.2% to $854 million. 

Companies and institutions are outsourcing PR just as they decided to outsource advertising in the 1960s. There is more creativity and innovation in the agencies since staffers are confronted with a host of issues for different clients each day and can provide independent third-party perspective. Agencies may take the hit if something goes wrong.

Clutch Uses Metrics

Clutch

The Clutch agency evaluation process has an “Ability to Deliver” dimension that is comprised of three evaluation criteria, each with several underlying metrics.

Each provider is scored from 1 to 10 on each metric with the values rolled-up to the three evaluation criteria and then an overall score for Ability to Deliver. 

The most highly weighted component is feedback from clients. Current and former clients are asked to rate PR firms on a range of qualitative and quantitative topics. Client feedback is weighted by project size and complexity. Quantitative scoring includes the following elements: 

  • Quality - Quality of services and deliverables
  • Cost - Overall value and conformance to cost estimates
  • Schedule - Ability to meet deadlines and meet agreed project schedules
  • Willingness to refer - Willingness to refer a colleague to the company

The client portfolio of the firm is reviewed and the types of projects completed for the clients. Case studies are examined as well as social media presence. Expertise in specialized areas are examined. A full explanation of Clutch process is on its website.

Clutch operates in the open. Full-length profiles and client interviews are published.

Seitel Says Hire Creativity

The Practice of Public Relations by Fraser Seitel

While Clutch has a scientific, numbers-driven approach to measuring the effectiveness of PR firms, those shopping for PR can also benefit from the advice of Fraser Seitel, longtime PR counselor and author of one of the three leading college texts on PR, The Practice of Public Relations, now in its 15th edition.

Seitel, in “How to Hire a PR Firm: the Corporate View,” which is a permanent entry on odwyerpr.com, gives as his first piece of advice, “Whenever possible, seek competitive bids.”

This guards against “consultant complacency,” he notes. Firms know they are in a “fight” and can’t take anything for granted.

Other advice is that references be obtained and interviewed. Clutch is doing lots of work in that area.

Avoid High Initial Fees

“Negotiate down large retainer fees,” says Seitel. Some consultants will seek $500 or even $1,000 an hour. Some may be worth that. “Counter offer to start at a reduced rate to give both parties time to assess and work into the relationship,” he says. If the consultant proves invaluable, rates can be changed.

Monthly bills should be reviewed closely. Do agency people fly First Class and eat at Grenouille or Wendy’s? Do they like the Ritz or Motel Six?

Seitel does not like the “management audit.” Resist this request whenever possible, he says. Consultants say they want to “get to know” top client executives by interviewing them. But this could be a guise to get to higher execs for future consideration, he warns.

“Hire creativity” is another piece of advice. Avoid solutions to someone else’s problems. Clients should not be satisfied with “safe, bland, and straight off-the-shelf answers used many times before,” he advises.

Below are links to firms profiled by Clutch: