PR is one of the most powerful, yet most neglected tools for marketing.
Especially for consumer brands, it is most useful in creating familiarity and visibility among users. Let us see with an example:
In India, the cost of customer acquisition online through CPC and CPM based activities is anywhere between Rs.500 – Rs.1500, depending on various parameters. For a category where the average sale price is Rs.500, and where the brand is operating at a 30% gross margin, if the customer acquisition cost is Rs.1500, the brand will need 10 transactions from that customer to just cover the cost of customer acquisition.
On the other hand, in case the brand also uses PR, and is able to get some visibility for its offering, they can reach many new potential users without any direct cost. In this situation, if the ‘blended’ cost of customer acquisition i.e. the average cost of customer acquisition including paid + free PR generated users, is say Rs.300, the brand would need just 2 transactions from the customer to recover the cost of customer acquisition.
Good PR is not by accident. It is a result of a planned effort by the company. Of course, to leverage PR, the startup or its product and service should have something newsworthy and interesting for media to cover.