Purposeful Business Development

Upskilling technical specialists in purposeful business growth

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Business development is a core skill for every technical professional.  I prepare you in the foundation of consistent and purposeful work winning.

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Customers

What to say next? Unlock the Art of Customer Conversations

By Tom on

During recent business development workshop I was asked about customer conversations. Specifically about ways to keep them flowing. The attendee had recently experienced a conversation with a customer that had dried up, and he hadn’t been sure how to keep it moving. We all know that effective customer conversations are crucial for building strong relationships. However, many conversations fall flat due to a lack of direction or inability to maintain engagement. In this post, we explore two key aspects of customer conversations: asking for feedback and having a rough plan for discussion. Additionally, we will look at some valuable tips to help you keep the conversation flowing smoothly.

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Asking for feedback

The foundation of any meaningful conversation with a customer is understanding their experience and satisfaction. Asking for feedback not only demonstrates your commitment to their needs but also opens up avenues for improvement and problem-solving. Here are a few tips for gathering feedback effectively:

a) Be specific: Ask targeted questions about their experience with your product or service. This helps them focus on particular aspects and provides you with actionable insights.

b) Active listening: Give your undivided attention to the customer’s responses. Show genuine interest and ask follow-up questions to delve deeper into their feedback.

c) Appreciate feedback: Whether positive or negative, express gratitude for their willingness to share their thoughts. Positive feedback reinforces their satisfaction, while negative feedback allows you to address concerns and improve.

Having a rough plan

While customer conversations should flow naturally, having a rough plan of discussion points can provide structure and ensure you cover important topics. Here are a few areas to consider:

a) Current issues: Inquire about any challenges or concerns they might be facing. This demonstrates empathy and positions you as a problem-solving partner.

b) Upcoming projects: Discuss any upcoming projects or initiatives that might be relevant to their business. Understanding their future plans allows you to align your products or services accordingly.

c) Cross-selling opportunities: If appropriate, identify opportunities to introduce complementary products or services that could benefit the customer. However, be mindful of their needs and avoid pushing sales.

Keep the conversation flowing

Tips to keep the conversation flowing

To maintain a smooth and engaging conversation, consider the following tips:

a) Active listening: Pay attention to what the customer is saying and respond thoughtfully. Avoid interrupting or dominating the conversation. Remember, it’s about them, not just you.

b) Empathy and understanding: Show genuine interest in their perspective and challenges. Put yourself in their shoes and respond with empathy. This helps build trust and rapport.

c) Open-ended questions: Instead of simple “yes” or “no” questions, ask open-ended questions that encourage detailed responses. This fosters a more in-depth conversation and allows you to uncover valuable insights.

d) Summarize and clarify: Periodically summarize the main points discussed to ensure mutual understanding. This also demonstrates active engagement and reinforces your commitment to their needs.

e) Be authentic and personable: Use a friendly and conversational tone, ensuring your personality shines through. Avoid scripted responses and strive for a genuine connection.

Final thoughts

Mastering the art of customer conversations is an invaluable skill for building strong relationships and driving business success. By actively seeking feedback, having a rough plan, and employing effective communication techniques, you can create meaningful interactions that leave a lasting impression on your customers. Remember, it’s not just about the conversation itself, but the long term impact it has on your customer relationships and therefore your business as a whole.

Customer conversations

For more help with starting your business development journey download my quick start guide. This gives a series of simple activities to quickly set you on the right path in only 10 days.

For a definition of business development you can check out my take in this post here.

If you are getting value out of my weekly free content I’d ask that you consider buying my new book. It’s a simple yet comprehensive framework to base your business development activity around and full of practical application to get you started now. It is available to order on Amazon now.

Order your copy now!

Business development and farming

If you want a more proactive and personal approach to improving your business development skills then I am here to help. Through face to face video discussions I’ll set you on the right path and keep you accountable to future activity. To learn more click the button below.

Business Development Coaching

3 Powerful Strategies for Retaining Clients and Boosting Business Growth

By Tom on

A few months ago I started a new role as a General Manager for an environmental consultancy. We have a strong customer base with lots of repeat business. What a fantastic position to be in. However, being the paranoid type and having worked through a number of economic downturns I want to make sure that we make serious efforts in retaining what I consider to be the most valuable part of the business. Therefore, in this article I explore purposeful strategies for retaining clients.

Building long-term relationships with your existing clients not only ensures a steady revenue stream but also enhances your reputation, opening doors to new opportunities. However, retaining clients requires a proactive approach and strategic thinking. We explore three powerful strategies that can help with retaining clients and fostering business growth.

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Deliver exceptional customer experience

The foundation of client retention lies in providing an exceptional customer experience throughout their journey with your business. This includes:

a) Understanding Client Needs: Take the time to thoroughly understand your clients’ goals, preferences, and pain points. This will allow you to tailor your products, services, and communication to meet their specific needs.

b) Continuous Improvement: Regularly seek feedback from your clients and actively work on improving your products, services, and processes. Use surveys, feedback forms, or even personalized follow-up calls to gauge client satisfaction and identify areas for enhancement.

c) Prompt and Effective Support: A timely and efficient support system is vital for client satisfaction. Offer multiple channels for clients to reach out for help or clarification, and ensure quick response times. Train your team to be knowledgeable, empathetic, and proactive in addressing client concerns. Immediately acknowledging client issues and keeping regular communication throughout their resolution is also important.

d) Personalized Communication: While this is last in the list I actually consider it to be the most important point. Regularly engage with your clients through personalized communication channels. Addressing them by name, providing relevant updates, and showing genuine interest in their success. Utilizing various platforms like email, phone calls, social media, and face-to-face meetings to foster a strong connection. To really show your customer that they are important to you take time to meet them face-to-face. That way you can develop the relationship, understand their needs and get feedback all at the same time.

Nurture long-term relationships

As hinted in the points above, client retention is heavily reliant on building strong, long-term relationships. By investing in purposeful relationship-building strategies, you can foster loyalty and keep clients coming back, cementing a pipeline of recurring revenue. Here’s how:

a) Regular Communication: Stay in touch with your clients even when there are no immediate transactions. Share relevant industry news, valuable insights, or exclusive content that demonstrates your expertise. This positions you as a trusted advisor and keeps your brand top of mind.

b) Personalized Engagement: Treat each client as an individual, and personalize your interactions accordingly. Remember important milestones like birthdays or anniversaries and send personalized messages or small tokens of appreciation. By going the extra mile, you show that you genuinely care about their success and well-being.

c) Networking Opportunities: Create a community or platform where your clients can connect and engage with each other. Facilitate networking events, workshops, or online forums where they can share experiences, collaborate, and derive additional value from your brand. Offering training on relevant topics is a great way to develop networking opportunities for both your customers and your team.

Letting your clients know that they matter to you is an important part of building long-term relationships

Continual value creation

To retain clients, it’s essential to continually deliver value and exceed their expectations. By consistently demonstrating your expertise and going above and beyond, you can solidify your position as a trusted partner. Consider the following approaches:

a) Regular Updates and Enhancements: Stay ahead of the curve by consistently updating your products or services to meet evolving client needs. Regularly communicate these updates to your clients and highlight the added value they bring.

b) Thought Leadership Content: Position yourself as a thought leader in your industry by creating and sharing valuable content. Write insightful blog posts, host webinars, or produce educational videos that address your clients’ pain points and offer practical solutions. LinkedIn can be of real help here. Letting you get this content out into your industry through your contacts and groups.

c) Proactive Problem Solving: Anticipate potential issues or challenges your clients may face, and proactively provide solutions. Offer guidance, tips, or additional resources that empower them to overcome obstacles and achieve their goals.

d) Regular Performance Reviews: Conduct regular performance reviews with your clients to assess their satisfaction, identify areas for improvement, and set goals for the future. This not only demonstrates your commitment to their success but also helps you stay aligned with their evolving needs.

Final thoughts on retaining clients

Retaining clients is a vital aspect of any successful business strategy. It could be argued that it is more important than seeking out new customers. By prioritizing exceptional customer experiences, nurturing long-term relationships, and continually creating value, you can build client loyalty, foster business growth, and establish yourself as a trusted partner in your industry. Implement these strategies consistently and with purpose, adapt them to your unique business context, and watch your client retention rates soar while your business thrives.

Retaining clients

For more help with starting your business development journey download my quick start guide. This gives a series of simple activities to quickly set you on the right path in only 10 days.

For a definition of business development you can check out my take in this post here.

If you are getting value out of my weekly free content I’d ask that you consider buying my new book. It’s a simple yet comprehensive framework to base your business development activity around and full of practical application to get you started now. It is available to order on Amazon now.

Order your copy now!

Business development and farming

If you want a more proactive and personal approach to your business development I am available to help. Through face to face video discussions I’ll set you on the right path and keep you accountable to future activity. I currently have space on my 1on1 personalized coaching program, or you can sign up to my flagship course. To learn more click the button below.

Business Development Coaching

Warning: When Customers Cross The Line

By Tom on

In business development, the focus is often on customer retention, acquiring new customers, expanding market reach, and maximizing profits. However, in certain cases, businesses encounter customers who repeatedly take advantage of their services, products, or resources. These customers drain valuable time, energy, and profitability. Effectively hampering growth and hindering overall success. In such circumstances, divesting customers becomes a crucial step towards sustainable business development.

Begin purposeful business development: Grab Your Guide

Recognizing Customer Exploitation

Customer exploitation occurs when certain customers consistently push boundaries, exploit discounts, demand excessive resources, or create undue operational complexities. While it’s natural to encounter occasional challenging customers, identifying a pattern of exploitation is vital for making informed decisions. Here are some signs that suggest a customer may be crossing the line:

  1. Unreasonable Demands: Customers who persistently demand additional services, support, or concessions beyond what was initially agreed upon.
  2. Unprofitable Relationships: Customers who consistently negotiate steep discounts, eroding profitability without offering commensurate value.
  3. Resource Drain: Customers who monopolize significant amounts of your company’s time, energy, and resources, impacting other business relationships.
  4. Ethical Misalignment: Customers whose values and behaviors conflict with your company’s ethical standards, causing reputational risks.

Reasons to Consider Divesting Customers

If you recognize customer exploitation consider the following before making the decision to divest.

  1. Preserving Profitability and Growth: Continually catering to exploitative customers can compromise your company’s financial health. By divesting from these customers, you can reallocate resources towards more profitable endeavors and nurture relationships with clients who genuinely value your products or services.
  2. Enhancing Operational Efficiency: Exploitative customers often require a disproportionate amount of attention and resources, impeding the smooth functioning of your business. By divesting from them, you can streamline operations and better serve customers who contribute positively to your bottom line.
  3. Protecting Employee Morale: Constantly dealing with demanding and exploitative customers can take a toll on employee morale and motivation. Divesting from such customers sends a powerful message that you prioritize a healthy work environment and respect your employees’ efforts.
  4. Maintaining Ethical Standards: Upholding ethical standards is crucial for any business. Divesting from customers who engage in unethical behavior helps protect your company’s reputation and ensures that your values align with those of your customers and partners.
  5. Fostering Long-Term Customer Relationships: By divesting from customers who exploit your business, you create space for new customers who align with your goals and values. This strategic decision allows you to focus on cultivating long-term relationships with customers who appreciate and support your products or services.
Is one customer causing unreasonable frustration? Consider divesting!

Navigating the Divestment Process

As with all things business development you need to have a process. When considering customer divestment, it is essential you follow a systematic approach:

  1. Assess the Situation: Thoroughly evaluate the impact of the customer’s behavior on your business, considering financial, operational, and ethical aspects.
  2. Communicate Openly: Engage in transparent conversations with the customer, expressing your concerns and setting clear expectations for a more mutually beneficial relationship.
  3. Explore Alternatives: Consider alternative solutions, such as adjusting pricing, renegotiating contracts, or implementing stricter policies, before resorting to complete divestment.
  4. Gradual Transition: When divesting, ensure a smooth transition for both parties. Provide reasonable notice periods, recommend alternative solutions if applicable, and minimize any negative impact on the customer’s operations.
  5. Strengthen Market Positioning: Use the newfound resources and energy to refine your market positioning, target ideal customers, and enhance the value proposition of your products or services.

Final thoughts

Divesting customers may seem counterintuitive, however it is sometimes necessary to protect the long-term sustainability and growth of your business. Identifying and divesting from customers who repeatedly exploit your resources, undermine profitability, or clash with your values is a strategic move. Effectively allowing you to redirect your efforts towards nurturing relationships with customers who are mutually beneficial. By fostering a culture of respect and setting clear boundaries, businesses can focus on sustainable business development and establish a solid foundation for long-term success.

Divesting customers

For more help with starting your business development journey download my quick start guide. This gives a series of simple activities to quickly set you on the right path in only 10 days.

For a definition of business development you can check out my take in this post here.

If you are getting value out of my weekly free content I’d ask that you consider buying my new book. It’s a simple yet comprehensive framework to base your business development activity around and full of practical application to get you started now. It is available to order on Amazon now.

Order your copy now!

Business development and farming

If you want a more proactive and personal approach to your business development I am available to help. Through face to face video discussions I’ll set you on the right path and keep you accountable to future activity. I currently have space on my 1on1 personalized coaching program, or you can sign up to my flagship course. To learn more click the button below.

Business Development Coaching

Five Reasons Why a Bad Salesperson Creates Regret

By Tom on

I was chatting to my friend Ben the other day, a very accomplished sales manager in the retail sector. I asked the question “How can you identify a bad salesperson?” His response was simple yet fascinating.

Without hesitating he said “A bad salesperson creates regret”.

What a great answer! While the conversation moved on, Ben’s statement continued to buzz around my head. I had to explore this more. So I did.

Bad salespeople create regret in many ways, which leaves a bad taste in the mouth of the buyer. In turn, this reduces the likelihood of a return buyer. As a business developer the aim is to develop long term relationships that yield fruit over years. Not chasing the immediate sale.

So there is value in understanding how bad salespeople create regret so we can learn from this behavior and avoid it ourselves.

Grab Your Free Guide to Business Development Here

High pressure sales tactics

Use high-pressure tactics to force consumers into making a purchase feels like a practice from the 1980’s. Aggressive language, making false promises, and using scare tactics make you feel like you’re running out of time to make a decision. This type of bad salesperson behavior pushes you into making a purchase that you later regret.

Instead, good business developers should be winning work through service. Helping their customers find solutions through honesty and ethical behavior. This in turn fosters trust which yields long term revenue.

Misrepresentation of products

Making false claims about the product’s quality, capabilities, or performance is inexcusable and definitely in the realm of the bad salesperson. This creates regret for consumers who were led to believe they were buying a high-quality product, only to find out that it does not perform as expected.

Rather, be honest in your dealings. Be clear and truthful about how your offering solves your customers problems. If you really can’t help your customer, let them know. They will be more likely to seek your help in future.

Upselling

Upselling is where a salesperson tries to sell more products or upgrades than you initially intended to purchase. This can create regret for consumers who feel like they were pushed into spending more money than they wanted or could afford.

In some cases the upselling is warranted, in order for the customer to get the most value out of their product. However, the unthinking “would you like fries with that?” mentality doesn’t add any value and likely fosters regret.

A good rule of thumb is to only upsell when you are adding real value by doing so.

The classic regret filled upsell: do you want fries with that?

Inadequate product knowledge

Bad salespeople often brag about being able to “sell anything”. However, such a claim often means they don’t have a good understanding of the products or services they are selling. This results in giving incorrect information or making false claims about the products. In turn this creates regret for consumers who find out later that the product or service is not what they thought it would be.

Alternatively, make sure you understand your company offering. Arm yourself with knowledge. This is where, as a technical consultant your experience really shines. If you don’t know the product or industry, learn. Immerse yourself in not only the product or service but the context around it. Use the technical team for support. There can be real benefit in getting them in front of your customer when discussions get technical.

Lack of customer service

Customer service can make or break a business. Unfortunately some salespeople don’t provide adequate service after a purchase has been made. This includes, follow up, feedback, assistance and generally boils down to continued communication. Taking an order before immediately moving on to the next without a thought for the customer can create a feeling of regret. Preventing them from becoming a return customer.

Spending time with your customer, building rapport and helping them solve a solution sets the foundation for continued communication. Make the most of it. Checking in with your customer to make sure they are happy goes a long way to solving issues before they get too big.

Let your customers know that they are important to you and that they care.

Final thoughts

Bad salespeople create regret in many ways, and as a business developer it’s important to be aware of these tactics so as not to emulate them. It really comes down to service. Treating your customers with respect, understanding your product and industry while avoiding unnecessary upselling and bully tactics helps you avoid this. As such you can raise the probability of a customer coming back to you again and again.

Remember, a business developer is not a salesperson. Business development should be built on strong relationships and even stronger customer service.

Can you answer the question: How do you provide good service to your customers?

Bad salesperson

If you want a proactive approach to upskill your work winning check out my flagship course Business Development Academy. Set over 4 modules and 10 videos this course leads you through the business development process step by step. Giving you the skills, system and processes to be more purposeful in the market place. To learn more click the button below.

Business Development Academy

Business Development such a Challenge

Are looking to begin your Business Development journey but are not quite sure where to start? Download my guide to scaling your revenues in 10 days. This gives you 10 days of achievable action to set you on the right path.

For a definition of business development you can check out my take in this post here.

For a simple yet comprehensive framework to base your business development activity around I recommend checking out my new book Business Development Begins Here. It is available to order on Amazon. Visit the link to grab your copy now.

Order your copy now!

N

Why Removing Customers is Great for Business

By Tom on

Focusing on retaining and searching for existing and new customers is an essential part of business development. But what about removing customers? Does that make good business sense?

I would argue that yes, it does.

Divesting customers may seem counterintuitive at first glance. After all, the goal of any business is to acquire and retain as many customers as possible, right? Not exactly. In some cases, divesting certain customers can actually be a smart business move that can benefit a company in numerous ways. Below I discuss three reasons why divesting some customers is a good thing before giving some tips on how to work out who to divest and how to divest them.

Get started with business development: Grab Your Guide here

Improving Profitability

One of the primary benefits of divesting certain customers is improved profitability. Not all customers are created equal, and some are more expensive to serve than others. For example, customers with high maintenance requirements, low lifetime value, or difficult payment histories can all consume significant resources, significantly eroding profitability.

By divesting these types of customers, a company can free up resources to focus on more profitable customers, increase efficiency, and boosting overall profitability.

Increasing Focus

Another benefit of divesting customers is that it can help a company to focus more closely on its core market. When a company has too many customers, its resources become spread thin, struggling to meet the needs of each individual customer. By divesting less profitable or less desirable customers, a company can focus on building stronger relationships with its core target market. Resulting in increased customer loyalty, and improved customer satisfaction.

Better Alignment with Company Goals

Finally, divesting less desirable customers helps a company to better align its business with its core goals and values. Not all customers are a good fit for a company, and retaining customers that are not aligned with a company’s values or goals can create conflicts, erode morale, and negatively impact company culture. By divesting these customers, a company can remain true to its core values and goals, while maintaining a positive, productive work environment.

How to Divest

By now I hope you should see the benefits of divesting part of your customer base. But how do you determine who should go?

Your first point of call should be your customer matrix. Ideally you will have set up a matrix benchmarking your customers against the attributes of your “Ideal Customer”. This visual representation of your customer base will highlight those closest to the ideal and those furthest away. Looking at the latter group really think about why you would want to continue working for them. If you cant think of a good reason: divest.


Cutting out customers can be good for business

Additionally, develop a list of three traits that make working with you and your business untenable. These could include:

  • Never pay on time
  • Expect you to drop everything for them
  • Rude
  • Always trying to push down price

Then divest.

This can be as simple as no longer tendering on projects for that particular customer. But if you have a long history with that particular client a short phone call explaining their behaviour and its impact on your decision to no longer work with them may be appropriate.

Final thoughts

Divesting certain customers can be a smart business move that improves profitability, increases focus, and better aligns a company with its core goals and values. Seemingly counterintuitive at first, divesting some customers can help a company to be more successful in the long run. It also allows the business developers to focus on those customers where you can add the most value and get the best returns.

Feedback

Are you looking to begin your Business Development journey but are not quite sure where to start? Download my quick start guide to business development. This gives a series of simple activities to quickly set you on the right path in only 10 days.

For a definition of business development you can check out my take in this post here.

If you are getting value out of my weekly free content I’d ask that you consider buying my new book. It’s a simple yet comprehensive framework to base your business development activity around and full of practical application to get you started now. It is available to order on Amazon now.

Order your copy now!

Removing Cusotmers

If you want a more proactive and personal approach to your business development I am available to help. Through face to face video calls I’ll set you on the right path and keep you accountable to future activity. I currently have space on my 1on1 personalized coaching program, or you can sign up to my flagship course. To learn more click the button below.

Business Development Coaching

Three Essential Reasons to Meet Your Customers

By Tom on

As a business developer, your primary goal is to create sustainable growth for your company. Attracting new customers and retaining existing ones is the primary method of achieving this. Understanding the needs and preferences of your target market is critical. Of course, the best way to gather this information to meet your customer in person.

Meeting with your customers provides valuable insights into their issues, expectations and the way they operate. Interacting with them face-to-face, gives a deeper understanding of their needs and preferences, as well as the reasons why they choose to do business with you. This information can be used to develop more effective marketing strategies, refine service delivery and improve customer engagement. It also helps you build rapport with your customers, showing them that they are important to you.

Get started with business development: Grab Your Guide

Personal connection

Establishing a personal connection with your customers is essential. When customers feel that they are understood and valued, they are more likely to be loyal and supportive of your business. This can lead to increased customer satisfaction and higher levels of customer retention. Meaning that your recurring revenue is more secure. Additionally, meeting with your customers allows you to build trust and establish a positive reputation, which is a key factor in attracting new customers.

Imagine preparing to purchase a service for your business. You have two possible suppliers:

  1. Supplier has sent an email detailing their service and pricing
  2. Supplier has met you, understood your issues and tailored an appropriate response that solves your problem

The supplier who has taken the time to meet and understand your issue is obviously the front runner here.

Gaining feedback

Meeting with your customers also gives you the opportunity to get feedback (both good and bad) on your services. By listening to this feedback, you can identify areas for improvement and if required, adapt your business. This leads to increased customer satisfaction and a stronger, more resilient business that evolves with the market.

Feedback also let’s you know where your company is performing well. Sharing this with the wider team is good for morale. It also let’s you know which parts of your business your customers value most. There might also be opportunity to double down on these areas of strength.

Getting feedback when you meet your customer is critical

Relationships and trust

Finally, committing to meet your customers is an excellent way to build relationships with the people who matter most to your business. When you take the time to understand their needs and priorities, you can develop meaningful connections that will benefit you both. This fosters trust, establishing a loyal customer base.

The importance of trust cannot be underestimated. If a customer trusts you to solve their problems they will seek you out. Securing a place as trusted advisor for your customers is an enviable position to be in. Really this should be one of your business development goals.

Final thoughts

For a business developer, meeting with your customers is a critical step in building and growing your business. By understanding their needs and preferences, you can improve customer engagement, establish a personal connection, get meaningful feedback and establish professional trust. By making a concerted effort to meet with your customers, you can build strong, long-lasting relationships that will help you achieve sustainable long-term growth.

Starting with your existing customers is a simple way to start. They already know you and are more likely to meet. Use this as a way to take the first step before committing to meeting new people. 

For more advice on customer meetings check out my blog post on how to host effective customer meetings.

So what are you waiting for? Contact your customers, get out and get meeting!

N

If you want a proactive approach to upskill your work winning check out my flagship course Business Development Academy. Set over 4 modules and 10 videos this course leads you through the business development process step by step. Giving you the skills, system and processes to be more purposeful in the market place. To learn more click the button below.

Business Development Academy

Meet your customers.

Are looking to begin your Business Development journey but are not quite sure where to start? Download my quick start guide to business development. This gives a series of simple activities to quickly set you on the right path.

For a definition of business development you can check out my take in this post here.

If you are getting value out of my weekly free content I’d ask that you consider buying my new book. It’s a simple yet comprehensive framework to base your business development activity around and full of practical application to get you started now. It is available to order on Amazon now.

Order your copy now!

The Art of Customer Classification: Where to Spend Your Energy

By Tom on

Customer classification is the act of identifying common traits within a group of customers. It answers the question: what is similar about these companies and their purchasing habits?

For any organisation to succeed, needs daily business development activity. Unfortunately we all suffer from a lack of time. Therefore, your precious time must be spent on activities that will yield the highest chance of success. Prioritizing your customers is key.

Over the Christmas holiday I read the excellent Undaunted by Ed Zier. This harrowing story tells the true experiences of a company embroiled in the 9/11 World Trade Center attacks. While a tragic tale the book also highlights the resilience of the survivors and the subsequent rebuilding of their company. I cant recommend it enough.

In amongst the bravery of the employees the book details the growth of Baseline an early financial analytics company. By doing so it includes gold nuggets of business development advice. In this instance the prioritization of your customer base.

Get started with business development: Grab Your Guide

Why do we need to classify our customers?

As well as being an accomplished author Ed was the Head of Sales at Baseline during the attacks on the World Trade Center. He knows a thing or two about developing a business and running a sales team.

Without classification or clarification your team will spend their time across a range of customers. Ideally focus on those likely to produce the most recurring revenue. However, Ed found that in fact customers were being treated equally. Regardless of their real value to the company.

Consequently, there were instances of his team unwittingly prioritising lower value customers.

It’s easy to see that classifying your customers is important, letting you focus precious time on the highest yielding customers.

Without customer classification your platinum customers get lost in the crowd

How to classify your customers

Ed and his team measure their customers by the revenue volume as Bronze, Silver, Gold and Platinum. This included recurring revenue and an interesting pattern emerged.

  • Bronze accounts cancelled 30% of time after year 1
  • Gold Accounts cancelled 10% of the time after year 1

As well as being higher revenue earners, their Gold and Platinum clients tended to cancel less.

Clearly focussing on Gold and Platinum customers yielded the best results. Ed had a large sales force under his control. He changed the sales commissions to favour gold and platinum accounts, getting him a marked improvement in revenue results. Overall the new structure provided long term revenue stability.

Now it’s your turn

Ed’s story is a great example of how classifying your customers can have a huge impact on your sustainable revenue growth. Think about your own business. Where does most of your revenue come from? Which customers provide long term revenue stability?

Firstly consider classifying your customers by revenue. Perhaps there are other classifications that align with your company purpose. Ultimately classify your customers to make sure effort is spent on the highest potential of revenue return. I write a bit more about segmenting your customer base in an older post.

What are you waiting for? Grab a pen and start classifying your customers. Who are you Platinum customers and how can you make sure your team focusses on them?

Customer Classification

Are looking to begin your Business Development journey but are not quite sure where to start? Download my quick start guide to business development. This gives a series of simple activities to quickly set you on the right path.

For a definition of business development you can check out my take in this post here.

If you are getting value out of my weekly free content I’d ask that you consider buying my new book. It’s a simple yet comprehensive framework to base your business development activity around and full of practical application to get you started now. It is available to order on Amazon now.

Order your copy now!

N

If you want a more proactive and personal approach to your business development I am available to help. Through face to face video calls I’ll set you on the right path and keep you accountable to future activity. I currently have space on my 1on1 personalized coaching program, or you can sign up to my flagship course: Business Development Academy. To learn more click the button below.

Business Development Coaching

The Secrets of Immediate Action Work Winning

By Tom on

One of the hardest parts of practicing purposeful business development is starting. So how can you start? I was asked to present on this topic at my local toastmasters group and thought it would be worth sharing my presentation here. Exploring the secrets to getting started with your business development, you’ll find it isn’t as difficult as you might think.

Using the Triple A Framework

I write about the Triple A Framework extensively in my book Business Development Begins Here. In summary it comprises Assessing your company, sales ecosystem and your place within it. Aiming your future effort in line with your company purpose. Taking daily Action to further your company purpose.

Square Away Your Work Winning: Get Your Guide Here

Immediate Action Work Winning

Importantly, in getting started speed is of the essence and we will be looking at the Assess and Action phases only.

triple A framework

Assessing Your Customer

In an effort to hit the ground running I recommend assessing your customers first. Why? Arguably a business doesn’t exist if it has no customers. Therefore, I suggest they are the most important part of any business and should be treated as such.

Firstly, determine a profile of your ideal customer. I go through this process in more detail in this related post. Writing down the top 8-10 attributes of your ideal customer helps with this definition.

Plotting your attributes and your ideal customer profile into a matrix like the one below lets you begin benchmarking your customer base.

Example of a Customer Matrix

Input your top 10-20 existing, prospective and strategic customers and benchmark them against your ideal customer. Finally, using a simple red/green color code shows you which customers to prioritize.

Meeting Your Existing Customers

The second action is deceivingly simple. Go out and meet your existing customers in order of priority. There are a few reasons for this:

  • They know you already and are more likely to meet
  • Great source of feedback on your service (both good and bad)
  • Potential to get some great product/service stories to use in future conversations
  • Opportunity to get some early wins

Setting the meeting agenda around getting feedback and keeping a curious mindset keeps the meeting out of sales territory, making it more relaxed for both parties.

The Challenge

If you are serious about getting your business development started I have the challenge for you.

Over the next two weeks commit to meeting one existing customer every day. Ask them for feedback and learn how they do business. No sales. Make each meeting a learning conversation.

Do this and I can guarantee you will get a fantastic wealth of information about your product/service and will open up new sources of opportunities.

Immediate Action Work Winning

Are you looking to begin your Business Development journey but are not quite sure where to start? Download my quick start guide to business development. This gives a series of simple activities to quickly set you on the right path.

For a definition of business development you can check out my take in this post here.

If you are getting value out of my weekly free content I’d ask that you consider buying my new book. It’s a simple yet comprehensive framework to base your business development activity around and full of practical application to get you started now. It is available to order on Amazon now.

Order your copy now!

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If you want a more proactive and personal approach to your business development I am available to help. Through face to face video calls I’ll set you on the right path and keep you accountable to future activity. I currently have space on my 1on1 personalized coaching program and my flagship course. I’m also available to coach your team in the practice of purposeful business development. To learn more click the button below.

Business Development Coaching

A Simple Process for Writing Consistently Strong Proposals

By Tom on

Writing proposals can be difficult. How do you cram all the right information into a document while making it an easy and compelling read. A good proposal has to spell out why your service is right for the customer. Subtlety is not rewarded. Some quotes are small enough that an accompanying email covering some key selling points is enough. But for larger or more complicated opportunities, a detailed proposal is critical.

Consistency in your proposal writing is essential. You want to give every opportunity the best chance of success. Below I give a few tips on how to pull together a robust consistent proposal framework that will set you up for success.

Scale Revenue in Ten Days: Get Your Guide

Proposals are a critical part of business development.

A good proposal should be clear, concise and easy to understand. Don’t put the customer off with reams of technical data. In this post I showcase a simple framework that applies to proposals big and small. If you take care to add the following components in your next submission your chances of getting a win are massively increased.

A Simple Proposal Framework

The triple A proposal framework comprises six stages:

  1. Introduction—includes a thanks for the opportunity and a three-point summary of the unique aspects of the proposal.
  2. Problem—outlines the problem you have been asked to solve. Make sure it accurately defines the scope of work. Align expectations between yourself and the customer.
  3. Product/Service—explains what your product or service comprises and how it solves the customer’s problem.
  4. Plan—describes your execution plan, including timeframes.
  5. Price and Options—details the pricing structure of your offering.
  6. Resolution—showcases what the end result looks like for the customer.

Broken down like this, proposals are not complicated documents to produce. Developing a letter template that encapsulates the six points is a real timesaver that easily maintains the consistency of your sales messaging.

Always Follow Up

Always Follow Up on Proposals

After sending a proposal to a customer, always let them know you will follow up with a call in a few days. This gives the customer enough time to read your proposal and digest the content. Make good on your promise and follow up with a phone call to get some feedback. Ask for further clarification on the following:

  • Is it what you are looking for?
  • Does the scope cover everything required?
  • How is the price point?
  • Is there anything missing?

Use this as an opportunity to tweak your offering to align with the customer expectations. Of course, if the customer feedback has raised any issues, ask their permission to amend the proposal and resubmit. This gives one more opportunity to adjust in line with the exact customer expectations—one more opportunity to win the sale.

Some customers, in particular government departments, will not allow follow-up discussions. In this instance, accept this as the case and move on to the next action on your tactical action plan.

Proposal Action

Do you have a proposal template and does it cover the six points highlighted above? Commit to developing and refining over the next few days. I can guarantee it’ll make an improvement on your win rate.

What do you include in your proposal templates? Have I missed anything? Let me know in the comments below or through the normal channels.

Business Development Resources

If you want to get a head start on systemizing your business development download my guide below. It contains all the key elements you need to get your customer facing activity on point, right now.

If you want to give your team the tools they need to create consistency and repeatability in their work winning, I can help. For a simple framework to base your business development activity around I recommend checking out my new book Business Development Begins Here. You can Order on Amazon by clicking the pic below.

Available for Pre-order now!

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If you want a more proactive and personal approach to your business development I am available to help. Through face to face video calls I’ll set you on the right path and keep you accountable to future activity. I currently have space on my 13-week 1on1 personalized coaching program. To learn more click the button below.

Business Development Coaching

How to Host Effective Customer Meetings

By Tom on

Hosting effective customer meetings is perhaps the most important part of the business development skillset. Unfortunately many professionals are put off as they think they need to be salesy. I’m going to show you that this is most definitely not the case.

I remember going to my first customer meeting. I was so nervous. While I had met customers as part of project discussions this was the first one focused on business development. As a hydrogeologist I had identified this particular mining company as having serious water issues and found their Study Manager through a work colleague. One shaky email later I found myself walking down the Perth terrace for a coffee meeting.

Scale Revenue Without Doing Sales: Get Your Guide

I’d done my research and thought I knew what issues the customer were facing. Additionally, I was confident in the service that my team provided. I was also genuinely interested in the project and how my contact was progressing it.

As a bit of an introvert I was still very on edge at meeting a new person for the first time. What would they think of me, would I make sense, would they take me seriously? Additionally I admit I was feeling a little uncomfortable with the idea of selling.

Despite these fears, my genuine curiosity helped break the ice, I asked questions and listened to the answers. We explored their dewatering issues together. I didn’t try to sell anything. Instead I sought to understand and by doing so the sale emerged. I remember thinking that this was fun. It didn’t feel like selling. In fact I was actually enjoying myself.

This conversation turned into a small project that ended up growing and growing. We provided amazing service and I had an epiphany. Business Development is fun and I want to do more!

Below I discuss three ways to get the most out of your customer meetings and even make them an enjoyable experience for both parties.

Go to Customer Meetings with a Curious Mindset

Approaching customer meetings with curiosity is a great way to get out of the salesy headspace. The theme of what am I going to sell turns into what can I learn about this person and how can I help them. Thinking that you know your customers problems better than them smacks of arrogance and is a mistake. Instead aim to understand their issues and perspective. That way you can help solve their problems with empathy and deeper knowledge.

Have Effective Customer Meetings by Asking Lots of Questions

Before each meeting you should do your research on the customers business. Not to wow them with how much you know but rather to equip you with relevant and thoughtful questions. Use your knowledge to dig into their issues and explore why things are happening the way they are.

For example when I was a hydrogeologist I would have a rough idea of the water infrastructure, geological conditions and water regime that our customer was operating with. As such I wasn’t responding to their issues cold and could help provide insight into their situation.

Make sure to ask lots of questions

Most of the talking that you do in effective customer meetings should be question based. What issues are you facing now? Where are the gaps in your support? Why is this an issue? What would life look like if this issue was solved?

The last question is really critical. Placing your customer in a world where their issue is no longer a factor is gold. Ask questions to get them to paint a picture of how solving their issue will impact them personally. Doing this gets them more invested in actioning a solution.

Make Listening a Priority

Asking questions is a waste of time if you don’t listen to the answers. Practice active listening and really listen to what your customer is saying. And not saying. Take your time to understand and follow up with careful questions to draw out more. Be empathetic and show understanding.

This is not the time to rave on about how great your product or service is. Instead use your listening to give real world examples of how similar problems have been solved. Discuss ways you can help their specific issue. Talking about your wider services at this stage is a waste of time.

If you cant help be honest about it.

Make listening to your customers a priority

Further Action

Start thinking about how you approach your business development meetings and how you can turn them into effective customer meetings. Commit to approaching them with a curiosity mindset, armed with questions and an intent to listen. This will allow you to get a deeper understanding of your customers issues, give you an opportunity to help them solve them and foster a greater feeling of trust.

I challenge you to give it a go.

My book Business Development Begins Here is a comprehensive manual that guides you through the process from assessment to action is on sale now. You can order from Amazon by clicking the pic below.

Available from Amazon now!

If you are looking to get your business development processes squared away, download my guide to scaling your work winning in only ten days. This gives you the immediate actions needed to create consistency around your work winning without becoming salesy.

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If you want a more proactive and personal approach to your business development I am available to help. I’ll set you on the right path and keep you accountable to future activity. I’m currently have space on my 1on1 coaching program. To learn more click the button below.

Business Development Coaching

3 Reasons You Need a Business Development Leader on Your Team

By Tom on

Having a business development leader integrated into your C-suite or leadership team is crucial. Every business exists because customers are willing to pay for their products or services. Therefore every business should be customer centric, as I discussed in a recent post. Surely it follows that having someone who is regularly communicating with the customer base at the leadership table is a no brainer. A professional business developer is the perfect individual to keep the rest of the leadership team in touch with your customers perspective.

MORE +

Three Ways to focus on Customer-Centric Business Development

By Tom on

There are lots of advantages to being customer centric as a business developer. For a start one of your key functions is to grow revenue. Obviously To do that you need customers.

Unfortunately, I often hear stories of sales teams who are so focused on the sale that they grow disdainful of the customer. They forget about the customers perspective or needs. Instead they form an arrogance about their skills and product. “The customer should be grateful to have access to us” begins to permeate the culture.

I believe that the customer should be central to business as a whole. But this is even more important to the business developer. The benefits to this are innumerable. When your messaging, conversations and marketing are all focused on the customer you begin to look through the lens of service. Consequently customers are more interested in your offering as they see your desire to genuinely help them. Not to sell. Below I discuss three ways you can become more customer centric in your day to day business development activities.

Before I get started, a quick reminder that my book lands on 18th October. If you want to get yourself a simple framework to get your business development working I’d recommend checking it out.

Treat your customer as the Hero

1. Treat the Customer as the Hero

Framing yourself as the hero is a real mistake when it comes to business development. It’s difficult for the customer to understand how they are going to benefit. Instead placing your customer as the hero gives them focus on what their life will be like if they use your product or service. Donald Miller talks about this at length in his book Story Brand. Rather than focusing on your own offering take time to understand the customers problems. Explain to them how they will be the hero in their story if they use your product or service.

Enter business development conversations with a service mindset

2. Treat Business Development Conversations as a Service

How many of you have fielded a sales meeting or call and been bombarded by the pitch? Most of us I bet. I always leave those conversations feeling a little disappointed. Much to the point above I’ve heard all of the amazing features that your product offers but the salesperson has not found out how or if it relates to me. This is how sales has got a bad name.

Don’t enter customer conversations with the intent of getting something out of it. Rather approach each with a mindset of curiosity and service. What can I learn about this persons role? Do they have problems I can help solve? Use questions and active listening to really figure out their perspective.

Only once you really understand their needs can you look for ways to help. Perhaps it is your product. Maybe you can put them in touch with someone else in your network. A service mentality will have you looking beyond the confines of your offering. Surprisingly it may open up avenues you had never considered.

Keep your customer at the centre of all decisions

3. Put the Customer at the Centre of All Things

Being customer centric extends beyond the business development function of your company. I’m a firm believer that business development extends far beyond sales. A true business developer is involved with all parts of the business. Who else can bring the customer perspective to bear on operations, production and delivery?

As such you should be getting customer centric around all decisions. How will customers be challenged by changes in process, product or delivery? What features or service are the customers clamoring for? A business developer should be watching and listening for these things and actively feeding insights back to the teams. Additionally the business developer is critical in getting the messaging around company changes out to the customer.

Having a customer centric view keeps your decisions relevant to arguably your most important stakeholders. Being disciplined in maintaining this perspective allows you to adapt quickly and effectively.

Customer Centric Action

I would ask you to look at how you keep your customers at the center of your activity. Do you maintain systematic contact and ask for feedback regularly? Be honest, are you really listening to what they tell you?

What channels do you use to communicate customer feedback and information to company leadership? Do they listen? Maybe it’s time to start opening up a customer centric conversation in your business.

As always I’m keen to hear your thoughts. Let me know in the comments below or through the normal channels.

Resources

Are you looking to kickstart your business development journey. Download my free BD checklist below. It gives you the list of must-do activities to lay down a solid foundation for your work winning.

My new book, Business Development Begins Here, lands in a couple of weeks, I’d love for you to check it out.

Pre-Order Now!

If you want a more proactive and personal approach to your business development I am available to help. Through face to face video calls I’ll set you on the right path and keep you accountable to future activity. I currently have space on my 13-week 1on1 personalized coaching program. To learn more click the button below.

Business Development Coaching

Three Simple Tips for Adding Value to Customer Meetings

By Tom on

I remember going to my first customer meeting as a business developer. It was terrifying. I didn’t know the prospect and the thought of meeting someone new and trying to develop a business relationship seemed an alien concept. But I reminded myself that they had agreed to meet because they were interested in the hydrogeology services that my company offered. I also had the mining experience that they desperately needed.

Once we’d sat down with a coffee I didn’t feel comfortable going on a rant about our services. I think perhaps my innate shyness got the better of me. I’m glad it did. Instead I asked about the customer about them. Their situation. Their problems. To my surprise they opened up. The conversation explored their needs and I could respond by explaining a deeper knowledge of the problem and how we could assist.

I left that meeting feeling like I had really added value. It felt great. From then on I kept adding more and more business development responsibility to my role.

Knowing how to behave and looking for ways to add value in you customer meetings and other interactions is a core part of being a business developer. In this post I’m going to describe a good and bad experience I’ve had before detailing three tips to add more value to your customer meetings.

Example of a bad customer meeting below

A Bad Customer Meeting

Picture this—a business development manager from a large project tracking software company reached out to me via LinkedIn and asked to meet. The product he was selling would add benefit to the role I was in, so I was interested in learning more. He suggested meeting in a coffee shop near where I was working.

Firstly, he was ten minutes late, not a good start. Second, he didn’t offer to buy me a coffee; instead, he launched directly into his pitch. I had to stop him and go and buy my own coffee, politely offering to get him one also. I had to sit and be talked at for 20 minutes. To be honest, his product could have held the answers to all my project tracking needs, but I was no longer interested in listening to what he had to say. I drank my coffee as fast as I could before closing the meeting down.

A Good Customer Meeting

A better example was a business coach who I met through a board I was serving on. He was early. We grabbed a coffee, and he asked me about my leadership journey and any issues I was facing. After he learned about the problems I was tackling, he proceeded to explain how he could guide me through these challenges and what success might look like. I left the meeting feeling that I had learned something and, importantly, that I wanted to learn more. Needless to say, I became Greg’s customer for many years.

Tip 1: Listen Listen Listen

To get the most out of a customer meeting set yourself the goal of learning as much as possible about your customers situation. Stephen Covey’s Habit 5: Seek First to Understand, Then to Be Understood could not be more aligned to my message. Listen to your customer. Ask pertinent questions and understand the context around their issue. Only once you’ve understood them can you begin to start solving their problems.

Tip 2: Be the Guide, Not the Hero

In my bad example above I mention how I was talked at. The sales rep couldn’t wait to tell me about all the features and advantages of their software. They were the hero of their own story. Donald Millers’ Story Brand really encapsulates the idea that a company should act as a guide to their customers. Helping them to become the hero. By extension, the business developer should be the physical representation of that guide, leading the customer on the hero’s journey. Again, ask pertinent questions, listen, and advise. Don’t talk about yourself and how great your company is. Make the customer the centre of the conversation and react to that.

Once you understand their needs explain what their life will be like if they utilise your solution. Perhaps their productivity or their staff retention will improve. Whatever it is, don’t explain the process but describe how your customer will be the hero if they implement.

Always follow up after your customer meetings

Tip 3: Follow Up

Updating the tactical action plan after each customer meeting is essential. Adding a brief one-line summary is enough. Update the date for the next meeting in line with your predetermined priority cadence or based on the needs of the opportunity. Any immediate actions should be moved on to your daily task list.

Be sure to follow up the customer with any actions from the meeting itself as soon as you can. This shows them that you value them, while also striking while the iron is hot.

Finally, any interesting information about the state of the market or customer direction should be noted and fed back to the wider team.

Customer Meeting Action

That wraps up the three tips to add value to your customer meetings. My challenge for you is to think about incorporating Listen, Hero, & Follow up in to your future meetings.

As normal I’m ken to hear your thoughts. Drop a comment below or reach out through the normal channels.

Business development

Are looking to begin your Business Development journey but are not quite sure where to start? Download my business development checklist below. This gives a list of actions and activities to get you on the right path.

For a simple framework to base your business development activity around I recommend checking out my new book Business Development Begins Here. It has just gone on Pre-Order on Amazon. Visit the link to reserve your copy now.

Order your copy now!

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If you want a more proactive and personal approach to your business development I am available to help. Through face to face video calls I’ll set you on the right path and keep you accountable to future activity. I currently have space on my 13-week 1on1 personalized coaching program. To learn more click the button below.

Business Development Coaching

How to Cultivate Customer Relationships

By Tom on

Learning how to cultivate customer relationships is a crucial part of business development. It also forms the first part of our Systematic Sales Path. This post discusses what to do once you’ve identified an organization that you want to do business with. How do you go from an unknown entity to connecting with your ideal customer. I’ve identified a number of actions required to get the ball rolling. Remember that this is cyclical. Even if you win work through this customer you must continue to practice these actions to develop the relationship and ensure you don’t get replaced by a competitor.

The Customer Development Model contains the sequence of actions to be undertaken to begin developing relationships with your target companies and future customers.

Customer Development Model. To help cultivate your customers.
Customer Development Model

Surf the Org Chart

This encapsulates the concept of identifying a who’s who of the stakeholders and decision makers within your target customer organizations. Getting hold of a customer organizational chart can be virtually impossible. LinkedIn is the ideal tool to identify a few key personnel to follow up with. Ideally, these are customers with a use for your company offering or leading the teams who would be using it. This will identify which customer relationships to cultivate.

You must connect with different levels within the customer organization—leaders, frontline workers, and budget holders. Having multiple roles aware of your offering makes their decision to buy that much easier. If the frontline workers request your services and the leaders and budget holders already understand the value, the funds are much easier to release.

Surf the Org Chart to find prospective leads

Don’t fall into the trap of having only a single contact within a customer organization. Once that contact leaves, the relationship can vanish. It becomes all too easy for that customer to seek your offering elsewhere.

Introduction

For existing customers, the introduction is pretty straightforward. Asking for a meeting to gain feedback on your company’s performance allows you to meet with a clear agenda that doesn’t feel salesy. Remember to listen to the feedback they provide and take notes for later.

Gaining a meaningful introduction to a new potential customer can be the hardest part of the entire process. How do you get them to talk to you, let alone to meet you in person? The answer may surprise you:

Don’t be a salesperson!!

What I mean by that is put yourself in your customers shoes. Their time is precious—why should they spend it in discussion with you? Have a deep understanding of your customer’s problem. Make sure that what your conversation is going to add value.

Let your customer know what it is you intend to discuss and how it will be of use.

One of the best ways to get an introduction is to get a referral from a mutual acquaintance who believes there is value in you meeting. Talk to your personal network and existing customers to see if they can help you get an introduction.

Contact Customer

Once an introduction is secured, make contact via email or phone. The latter is more personable. With emails, be careful that your tone doesn’t come over as spam-like. This isn’t the time for a hard sell. Keep phone calls and emails short and to the point. Brevity is key. Just say who you are, who recommended you meet, and what you want to discuss.

Get on the phone and make contact!

If they say no, don’t feel despondent. Perhaps they’re not yet ready for your services. Always be polite and professional; you may well be dealing with them in the future. Make a note on your tactical action plan or CRM and move on to the next one, remembering to place a date to loop back to that contact again in the future.

Face-to-Face

Now the contact has agreed to meet. Don’t be nervous—they are meeting because of an interest in the agenda from your previous communication. Make sure that you stick to that agenda. You don’t want your customer to feel ambushed. Ask questions and listen to the answers. Do not spend all your time talking about how great your offering and company are. Use the 80:20 rule:

80 percent listening and 20 percent talking.

Learn as much as you can from the contact. Tell them a little about what your company and how you believe it can help in relation to what you’ve heard them say. Be polite and ask permission to reach out to them again in the future.

Cultivate your customers through a face to face meeting like the two women in the picture.
The best way to develop a customer relationship is via a face-to-face meeting

It’s worth noting that in the current times a face-to-face meeting can also be conducted via video call.

Follow Up

Once the meeting is complete, make sure to follow up fast. A quick email thanking them for their time and providing any information they may have asked for is enough. Adjust the tactical action plan or CRM with relevant notes, and set a date for a follow-up based on priority and opportunity potential.

Trial/Proposal

Having learned from the meeting about where the customer needs help, consider a way to let them experience your offering with little risk or expense. Perhaps you could invite them to your factory for a tour or provide some free training.

Alternatively, provide them with existing customers who are willing to act as a reference. Allowing the customer to experience what you have to offer can help develop their sense of trust in your company and offering, which can go a long way in reducing any concerns they may have of taking a risk on a new company.

Customer happily trialing a new product on his laptop.
Giving the customer a free trial can really show them the benefits of your solution

If the customer has discussed a specific problem that you can solve, don’t just send a quote, prepare a proposal. Include the costs. But you also need to reassure the customer that you understand their problem; explain how you can solve it. Make sure to highlight what the benefits will be once your solution is engaged. The proposal can take the form of a letter, formal document, or email. This will very much depend on the customer’s expectations. Regardless, placing your offering into context is key.

I’ll be discussing proposals in more detail in a later post.

Feedback Loop

In addition to updating the tactical action plan or CRM, it is critical that the information learned in the meeting is fed back into the wider business. Taking time to share findings during the leadership or team meetings is important so the organization can adapt. Don’t forget to include your internal stakeholders and influencers as part of this communication.

Cultivating your Customer Relationships

The Customer Development Model is a simple process that can really help you cultivate those relationships. Remember it is intentionally cyclical. You will need to repeat this cycle over and over again for your existing and prospective customers. It all comes down to not thinking like a salesperson but rather where you can create the most value. That way customers will look forward to you getting in touch and your conversations will be useful.

How do you cultivate your customer relationships? Let me know in the comments below, on LinkedIn or via the usual channels.

If you’d like to get access to more free content including our Business Development Checklist and LinkedIn Mastery Roadmap sign up to our list below.

Discover The Simple Trick Of Customer Segmentation

By Tom on
Very different lego figures showing customer segmentation in actions

Following creation of your customer matrix it’s a good idea to look at customer segmentation. It is obvious that not all customers are created equal. Business Developers only have a limited amount of time and resources. These must be spent on customers that give the best return.

Therefore, priority of effort must be defined. An easy method is to segment the list into three tiers. A quick way to determine priority level is to focus on both of the following:

  • Potential service spend
  • Target customer’s need for your company offering.
A series of legs hanging over a wall. Each have a different pair of shoes on. This represents the diversity in your customer base.
Your customer base is not homogenous. Photo by James Baldwin for Unsplash

Example Customer Segmentation

Lets take an environmental consultancy servicing the mining industry. They specialize in managing and mitigating environmentally sensitive sites, particularly involving threatened ecosystems.

A company like this might define customer segmentation using potential spend first. Next, they might use the customer’s number of environmentally sensitive projects to highlight the need they have for the company offering. This results in the three priority tiers:

  • Tier 1: $100,000/yr. spend and/or many environmentally sensitive projects.
  • Tier 2: $60,000/yr. spend and/or some environmentally sensitive projects.
  • Tier 3: $30,000/yr. spend and/or fewer environmentally sensitive projects.

Looking through their customer list and placing them into the three tiers becomes a straight forward exercise.

Tiles spelling the word focus. This post should help you focus your business development efforts.
Focus your effort. Pic by Brett Jordan for Unsplash

Focus Your Effort

This division can help you focus your effort on those companies that give you the highest return. Of course, Tier 1 should be the given the highest priority. However, the lesser tiers also have the potential for significant revenue and must not be forgotten. Think about how much effort you will assign to each tier. How often will you contact your target companies? Will it be different for each Tier?

I recognize that this approach can be considered too simple by some. But, think of the customer segmentation as a guide to focus your business development effort. However, there will be times where customer opportunities fall outside of this framework.

In these instances sit down with the team, discuss the likely returns and the effort needed to attain them. Use your customer segmentation to help shape the conversation. Work together to determine how to proceed. Perhaps there are unique strategic reasons to elevate a customer to Tier 1?

How Do You Do It?

As always I’m interested in how you prioritize your customer base. Do you segment into tiers? What attributes do you base them on? Drop a comment below or let me know via the usual channels.

Are you Sitting on a Gold Mine?

By Tom on

Business development is often considered to be synonymous with sales. While increasing sales does form a core part of the role, the aim of a business developer is to develop the business. This involves looking for new customers, new markets, strategic partnerships, and new offerings. But there are so many opportunities, it can be difficult to know where to start focussing your efforts.

Finding the Gold

A model that can be used to frame your initial thinking is the Ansoff Matrix (Ansoff 2015). This allows you to plot your products and service lines on the matrix below, using two axes: Existing and New.

The Ansoff Matrix presented in the figure below, allows you to determine your broad strategy and gives a good indication of where to start focussing your efforts. A good rule is to begin where there is the lowest risk and extend the risk profile as you firm up your revenue foundation. The matrix can also be used to help identify the low-hanging fruit, immediate action, to focus on, when starting your business development role, and those actions to consider once a feedback loop with the market and customer base has been established. This allows the business developer to adjust the company offering built on market and customer feedback.

Ansoff Matrix

Based on the matrix above, business development effort should be prioritised in the following order:

  • Market Penetration (lowest risk)

Provide existing products to the existing customer base. These customers already know your company and use your services. Continue expanding your existing offering amongst those who understand and appreciate it.

  • Market Development

Provide existing products to new markets. This takes your knowledge from the existing customers and products and applies it to new customers and markets. For example, a transport engineering team may be able to push their services into the mining industry.

  • Product Development

Develop new products for existing customers. Using your relationships with existing customers, and the knowledge of their needs, can enable the development of new products and services that may solve additional problems for them. A good example of this is outdoor brand Patagonia, offering their customers tough-wearing climbing clothes in addition to their quality climbing hardware (Chouinard 2006).

  • Diversification (highest risk)

Create new products for new customers. Using the knowledge and experience of developing new products for existing customers can give insight into applying it to new customers. This should only be considered once a robust feedback loop within the market has been in place for some time, to enable diversification decisions to be based on real market data.

The Ansoff matrix highlights a key lesson for any budding business developer: start mining the gold you already have.

I heard this fantastic analogy whilst listening to an interview where Tiffani Bova, a senior executive with Salesforce, was a guest speaker on a Business Made Simple Podcast, and it really struck a chord with me. During the days of the gold rush when a prospector got lucky and struck gold, he wouldn’t just get up and walk to the next mountain. He would start mining the vein that he had already uncovered. The same is true for business development. Start with your vein of gold, your existing customers and work out from there. They already know, and like, your service, your team, and your offering—they keep coming back. There is a level of goodwill here that makes it easier to target this group first. This goodwill can also help you gain references and referrals, and circulate success stories, which, in turn, can help open doors to your new customers.

Expand your mine! Photo by Shane McLendon for Unsplash

Expanding the Mine

The second half of the matrix, which is centred on product development and diversification, can only be explored once an adaptive feedback loop has been established between the market, the customer base, the business developer and their company. Only then is enough information being absorbed to make new product development a successful undertaking.

When you do get to the product development and diversification phases, Collins and Hanson (2011) provide some excellent advice in their book, Great by Choice. They suggest that you don’t go all in with a new or diversified product, but instead conduct small trials with products, which have controlled costs. Repeating these small trials will allow you to learn which products are worth the effort. Do not bet the whole company on a new diversified product offering.

If you see a gap in the market for a new offering use this advice and consider how you can conduct a small, relatively risk-free, trial of your idea. Present this to the leadership for approval. This has a much higher chance of being accepted. If it works, the new offering can be grown from there. If it fails, document what has been learned and move on.

Call to Action

Think about how you prioritise your business development pursuit. Are you making the most of the Gold that you already have? Do you have any existing customers who might be interested in other services your company provide? If so go talk to them!

Using the Ansoff Matrix along with the Sales Ecosystem can also help you find some BD Gold. Check out my previous post a the link to learn more.

As always I’m interested in your thoughts. Let me know what you think in the comments below.

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