Growing a Business Organically: ITS INSIGHTS AND CAPABILITIES, NOT RELATIONSHIPS T...

Growing a Business Organically: ITS INSIGHTS AND CAPABILITIES, NOT RELATIONSHIPS T...: "Duh! Ministry of the bleeding obvious – “a strong client relationship is important to the services sale” Everyone knows that it’s more com..."

ITS INSIGHTS AND CAPABILITIES, NOT RELATIONSHIPS THAT CLOSE SALES - By Scott Jenkins, Quench

Duh! Ministry of the bleeding obvious – “a strong client relationship is important to the services sale”

Everyone knows that it’s more comfortable, to buy from someone you know and trust and its not without its benefits. However it’s easy to overestimate the power of those relationships, especially when it comes to selling services. The days of clients automatically handing work to their favourites are long gone my friend! Even a long, long client relationship doesn’t earn you a free pass, and neither should it!

Overestimating the influence of a client relationship can lead to complacency and a severe lack of drive and determination you used to start that relationship. Maybe the client returns your calls immediately and gives you an audience whenever you like. However, that level of access should encourage you to work even harder to make an impact. Some service providers check in with their top clients and use the time for informal conversations about the client’s issues. If you’re not ready to give your client two or three items of value for everything they share with you, that relationship will eventually die a death.

Think about the first three meetings you had with your best client. I bet that you prepared with intensity and looked for ways to bring original ideas your client could use. That’s the behaviour that got your relationship moving, and that’s what will nurture it. Remember, the value of the relationship to the client lies in your ability to integrate your past experiences and your creativity to generate insightful guidance. Assume that the client holds you to a higher standard of performance than a new competitor, and you’ll keep the relationship vibrant. Building relationships of mutual respect with clients gives any service provider an edge—if you take care of the relationship. But relationships only carry you so far. They may open doors for you, but don’t assume that past client relationships will also close future sales.

VALUE IS IN THE EYE OF THE BEHOLDER - By Scott Jenkins, Quench

No matter what you believe about the value of your services, it’s the client who ultimately decides the sources of value. Some sellers are so sure of their own perceptions that they miss what’s really important to the client.

That’s what happened to John. His company assists organisations heighten security on their IT systems. His approach, was that clients dramatically improve the security at a reasonable cost, helped him generate enviable sales momentum. John was winning in the marketplace with his message. However, when he proposed his services to a long-time client, he lost the sale to a lesser-known competitor, who had proposed delivery of the service at a higher-price! The loss was confusing. John’s sales proposal was flawless, including his detailed assessment of the threat his client faced, a creative strategy for mitigating that threat, and the large sum of estimated value that the service would deliver. He reviewed his hand-delivered proposal with his client stakeholder and it was well received. John had thought everything was in place — a high-value proposal, a trusted client stakeholder, and the track record to make it all happen.

Why did he lose this seemingly sure bet? John got beaten on his analysis of value. He made a compelling case for the overall financial value, but he missed the importance of one deal-breaking detail. The client was intent on training his own staff in conducting IT security reviews, but John’s proposal made only a passing reference to that priority. His Competitor made the client’s view on that point the centrepiece of the proposal and walked away with the deal. You may think that John didn’t listen to his client and that’s why he lost. But John demonstrated that he heard the client by making reference to enabling the client’s team to become self-reliant. Unfortunately, he didn’t emphasize that enough; he stressed what he thought was more valuable, not what really mattered to the client.

You may understand how vital a credible expression of value is to winning the services sale, but keep in mind that the client is the final arbiter of value. Don’t be surprised if you see value in a completely different light than your client does. When you are trying to come up with an expression of value, rely on the facts you gather during your client meetings, and don’t let your preconceived ideas cloud your judgment. As John’s case demonstrates, a superior understanding and expression of value can oust a formidable opponent and incumbent supplier with a long-standing client relationship.