The Salak Group : Stragic Communcations and Research
TSG StratComm Survey
MARCH 2009Structural Disconnects Gut Communications ROI
This is the first in a series of annual surveys sponsored by The Salak Group. They are designed to identify critical issues in communications.
The vast majority of senior executives view communications as a strategic element of their businesses, although a remarkably large portion report their outreach efforts are relatively ineffectual and do not provide adequate returns on their investments, according to The Salak Group's first annual StratComm Survey.
Almost all of those surveyed (94 percent), in fact, acknowledge that communications is a strategic element of their businesses, which is used primarily to drive sales and build brand image. Yet despite this critical positioning, approximately 50 percent report that their communications strategy:- Does not adequately reflect their company's value
- Is not closely linked to their company's business strategy
- Is no better or worse than the efforts of their competitors
Against this background, it is not surprising that only 40 percent of senior executives admitted they are "satisfied" or more with the returns they receive on their communications investments.
These results reflect a critical - and perhaps growing - gap between the corporate communications objectives and their results. Several factors were cited as contributing to poor ROI, including a lack of in-house expertise, inadequate funding, and a failure to integrate outreach initiatives involving marketing, sales, public relations, employee communications, corporate positioning and investor relations.
Unfortunately for corporate America, there is a strong probability that the communications gap revealed by the survey has only widened in the face of the expanding global economic crisis, further undermining business development prospects. The StratComm survey, for example, was conducted during the second half of 2008, as the economic crisis was beginning to take hold. Since this time, the crisis has led many corporations to rethink their outreach and business development initiatives - in many cases cutting back on critical resources.
The expanding crisis, for example, has resulted in many corporations delaying or curtailing communications, marketing and business development programs. This retreat has come despite growing pressure on businesses to drive revenues and secure greater communications ROI. Corporations face the added challenge of doing more with less, even though many have yet to identify an effective way to measure the impact of their investments.
The cutbacks and de-emphasis on outreach is being seen in terms of in-house efforts and initiatives farmed out to agencies and third-party consultants. It is also being seen in virtually all communications channels, according to ongoing reports in PRWeek, ADWEEK, The New York Times and The Wall Street Journal. This trend, while understandable as corporations struggle in the face of declining
