Structuring Crisis Communications Retainer Agreements

Why Offer Crisis Communications Retainers?

Offering retainer agreements isn’t just a pricing strategy; it’s a fundamental way to enhance value for both your firm and your clients in the crisis communications space. Here’s why they are essential:

• For Your Firm:

  • Predictable Revenue: Retainers provide a stable income stream, smoothing out the peaks and valleys of project-based work.
  • Deep Client Relationships: Ongoing engagement allows you to build trust and truly understand your clients’ businesses, making your crisis counsel more effective.
  • Proactive Work: Retainers shift the focus from purely reactive crisis response to proactive planning, training, and monitoring, which is higher-value work.
  • Improved Resource Allocation: Knowing your retained workload helps you better manage your team’s capacity.

• For Your Clients:

  • Readiness & Preparedness: Clients have access to ongoing planning, risk assessment, and training before a crisis occurs.
  • Guaranteed Response Time: Agreements can stipulate service level agreements (SLAs) ensuring rapid access to your expertise when they need it most.
  • Cost Predictability: Clients can budget for crisis communications support rather than facing unexpected, potentially high costs during an emergency.
  • Trusted Advisor Status: They have a dedicated, expert partner who understands their specific risks and industry.

Common Crisis Communications Retainer Models

Structuring a crisis communications retainer requires defining the value provided within a recurring fee. Several models can be adapted:

• Access-Based Retainer: The client pays a fee purely for guaranteed access to your services and a specified response time (e.g., 24/7 availability, response within 2 hours) during a crisis. This model assumes that if a crisis occurs, additional fees for active work will apply, often at a pre-negotiated rate. It’s primarily about peace of mind and priority access.

• Hours-Based Retainer: The client pre-purchases a block of hours per month or quarter at a discounted rate compared to your standard hourly fee. These hours can be used for proactive work (planning, training, drills, monitoring) or reactive support if a minor issue arises. Unused hours may or may not roll over, depending on the agreement.

• Tiered Service Retainer: This is perhaps the most common and flexible model. You create different tiers (e.g., Bronze, Silver, Gold) offering varying levels of service, including:

  • Amount of proactive work included (plan updates, training sessions)
  • Level of access and guaranteed response time (e.g., business hours vs. 24/7)
  • Inclusion of specific services (media monitoring, social media Dark Site readiness)
  • Discounted rates for additional services needed during an active crisis.
  • Example: A ‘Silver’ tier might include quarterly plan reviews, one annual training session, and 24/7 priority phone access with a guaranteed 2-hour response for a flat monthly fee of $3,000 - $7,000.

• Hybrid Model: Combines elements of the above. For instance, a retainer might include guaranteed access plus a small block of hours for proactive work, with clear rates defined for additional hours or services needed during an incident.

Key Components of the Retainer Agreement

Regardless of the model, a robust crisis communications retainer agreement must clearly define expectations:

1. Scope of Services: Precisely list what is included in the retainer fee (e.g., annual plan review, quarterly threat assessments, specific number of training hours, media monitoring setup, 24/7 phone access). Just as important, clearly define what is excluded (e.g., active crisis management time beyond initial consultation, legal advice, implementation of recommended technical solutions).
2. Service Level Agreements (SLAs) / Response Times: Crucial for crisis work. Define specific guaranteed response times for different types of contact (e.g., initial phone call within 1 hour, onsite arrival within 12 hours, first draft statement within 4 hours). Outline any exceptions.
3. Pricing Structure: Clearly state the recurring fee (monthly or quarterly), payment terms, and how additional services or hours beyond the retainer’s scope will be billed (e.g., standard hourly rate, discounted crisis rate).
4. Term and Termination: Specify the contract length (e.g., 12 months) and conditions for early termination by either party.
5. Onboarding Process: Detail how the initial relationship begins, including discovery, initial plan review, or setting up monitoring systems.
6. Reporting and Review: Outline how you will demonstrate the value delivered by the retainer (e.g., quarterly check-ins, report on proactive work completed, review of monitoring alerts).

Ambiguity leads to disputes. Spend time defining these elements clearly upfront.

Pricing Your Crisis Communications Retainers

Pricing a crisis communications retainer goes beyond simply guessing a monthly fee. It requires a strategic approach:

1. Calculate Your Costs: Understand your internal costs for delivering the retainer services, including staff time (proactive work, availability), overhead, and any third-party tools (e.g., monitoring software). Ensure the retainer fee comfortably covers these costs and provides a healthy profit margin.
2. Determine Value to the Client: This is key to value-based pricing. What is the cost of a mishandled crisis for this client? (Reputational damage, lost revenue, legal fees). The retainer fee should be a fraction of that potential cost, representing a valuable insurance policy and preparedness investment.
3. Benchmark: Research what similar firms in your market charge for comparable retainer services. While not solely determinative, it provides context.
4. Structure Tiers Effectively: Use pricing psychology here. Create 3-4 tiers with increasing value and price points. The middle tier is often the most popular (the “anchor”). Ensure clear differentiation between tiers based on scope, access, and included services.
5. Consider Psychology: Use anchoring by showing a higher-value tier first. Frame the retainer cost as an investment in preparedness rather than just an expense. Mention the effective hourly rate if they utilize the included proactive hours, often showing a discount compared to ad-hoc work.
6. Don’t Underprice Availability: A significant part of a crisis retainer’s value is simply knowing you are available when needed. Price this peace of mind accordingly, especially for 24/7 access.

Presenting Retainer Options to Clients

How you present your crisis communications retainer options can significantly impact your closing rate and the perceived value. Moving beyond static PDFs or spreadsheets is crucial for a modern client experience.

Highlight the benefits specific to their potential risks. Instead of just listing services, explain how the retainer mitigates their specific crisis vulnerabilities.

When presenting tiered options or offering add-ons (like extra training modules, simulated drills, or expanded monitoring), using an interactive format allows clients to explore choices and understand the value of different configurations in real-time.

Traditional proposals can be lengthy and static. While comprehensive proposal software like PandaDoc (https://www.pandadoc.com) or Proposify (https://www.proposify.com) are excellent for managing the full proposal, e-signature, and contract lifecycle, they may be more than you need just for the pricing interaction.

If your primary challenge is presenting dynamic pricing options clearly and letting clients configure their preferred crisis communications retainer package before formal sign-off, a dedicated tool like PricingLink (https://pricinglink.com) can be very effective. PricingLink allows you to build interactive pricing pages where clients can select tiers, add-ons (like additional training sessions or specific monitoring feeds), and see the total retainer cost update live. This streamlines the pricing conversation, saves you time in generating custom quotes, and provides a modern, transparent experience for the client. It’s specifically designed for this part of the sales process – presenting pricing options interactively – before you move to a separate contract phase.

Managing the Retainer Relationship

Signing the crisis communications retainer agreement is just the beginning. Maintaining the relationship is key to long-term success and renewals.

• Consistent Proactive Work: Don’t let the retainer sit idle. Regularly schedule and perform the proactive services outlined in the agreement (plan reviews, training, monitoring reports).
• Regular Communication: Schedule quarterly or semi-annual check-ins, even if no crisis has occurred. Review their business risks, discuss industry trends, and highlight the value you’ve provided through proactive work and availability.
• Demonstrate Value: Provide concise reports summarizing activities completed under the retainer and reinforcing the peace of mind and preparedness they are investing in.
• Review and Adjust: Annually review the scope and pricing of the retainer. As the client’s business or risk profile changes, the retainer needs may evolve. This is also an opportunity to discuss adjusting the fee based on increased value or scope.