Can PR measurement save companies?

I had an interesting conversation with a client this week about the role of PR measurement within his corporation. While it started as a dialogue about how we demonstrate ROI and justify our program dollars, we quickly moved on to a much more interesting chat about how we could leverage our measurement program in a much more meaningful way.

His concern was less about measurement as an evaluative tool but more appropriately centered around using PR measurement as a means to surface real challenges to the brand and its ability to connect with customers and prospects. The idea is to move from a reactive position relative to the program to truly using PR measurement to look "around the corner" and anticipate issues that not only impact the communications function but, potentially the whole organization.

As PR professionals, we frequently are the first responders to emerging trends in our organizations thanks to the breadth of conversations we have with editors, reporters, stakeholders, etc. about all facets of our market. For example, Walmart PR first encountered the environmental movement long before the company began adopting green business practices.

A confidential 2004 report, prepared by McKinsey & Company for Wal-Mart, found that 2 percent to 8 percent of Wal-Mart consumers surveyed had ceased shopping at the chain because of “negative press they have heard.” Wal-Mart executives and Wall Street analysts began referring to the problem as “headline risk.”

I can count numerous occasions throughout my career when I or my colleagues were forecasting major business shifts prior to their realization. When we were representing Rio MP3 players in 2000, Apple suddenly entered the market with a hardware, software and services offering called iPod and iTunes. At the time, Rio had successfully fought off challenges from larger competitors like Sony, Samsung and others to keep a majority of the market share but it was immediately clear that Apple's entry was a game changer because of how it solved many of the pain points for consumers, pain points that the media surfaced long before the iPod hit the market.

Could PR measurement have saved Rio by highlighting these issues before Apple's market entry? Probably not, but the point is we're often the first to spot game changing competitive threats, emerging issues like the growing environmental consciousness of consumers, or changes in behavior that may lead to new opportunities. How often have we taken that info beyond our communications fiefdom to the broader organization?

The difference between then and now is that PR didn't have the seat at the executive table or the near real time tools to measure these shifts and use them to move the core business. With the relative influence of our brethren in advertising on the wane thanks to the current economic decline and the opportunity to surface real consumer insights (or at least a reasonable proxy that could point to areas for further examination) through social media channels, now is the time for PR to elevate itself as a true vehicle for change within the larger organizations.