Tag Archives: clients

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A 5 Step Value Proposition Plan, Steps 1 & 2

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No matter what,  human beings must do business.  In feudal societies and capitalist dictatorships;  in flush times and depressions;  in war and in peace;  there will always be traders,  sellers and buyers.  Where there is a need (real or perceived),  there will be a product or service available to provide some level of fulfillment.  Someone always makes money.

The most successful sellers present the most compelling case,  i.e. the strongest value proposition,  for their product or service and  they become  market leaders.  Maybe you’d like  to position your business for that kind of success?  There will be work involved,  but nothing that is insurmountable. The process can be broken down into 5 manageable steps and implemented according to a timetable convenient for you.

Getting started is easy— ask your customers! They may know more about your business than you do.  They certainly know the market place in which your business operates,  because they navigate those waters as purchasers and consumers of the products and services offered therein.  Your customers have done their homework and they have chosen you.

Above all,  we must  value our customers and communicate that to them.  Big spenders, the VIP customers,  deserve to receive the most value.  Important customers can benefit a business in more ways than one.  They are able to become our opinion leaders,  our advisory board. These customers can play a key role in helping to grow the business. Understanding this is Step One.  Next, demonstrate your trust and respect by implementing  Step Two:  interview the VIP customers.

Identify your three biggest billable hour clients and invite those with whom you interact the most out to eat at whatever meal you can afford to buy.  Client priorities can change as their organization and business environment changes.  Organizations will change in response to economic,  leadership,  competitive and consumer preference changes.

Stay on top of things by asking your VIPs what you can do to better serve them,  help them to do business better or make their jobs easier.  You can also ask what the competition is doing,  what changes may be on the drawing board within their company, etc.  You get the idea.  You may even find out about new markets for your services.

If you can access your competitors’ customers,  take them out to coffee,  too and see what you can find out about that scene as well.  What next big thing (or old school remix) is winning the hearts and wallets of customers?

Strengthen relationships,  make important customers feel even more so,  find new business opportunities,  tweak your business model or your advertising choices and maybe even get your foot in the door with a competitor’s client. Talk less,  listen more, take notes and be humble.

Next week,  we’ll examine the remaining three steps that will help you to create a winning  value proposition for your business.

Thanks for reading,

Kim

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The Best Prospects

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We are all looking to expand our client base and bring in more business.  Most of us are out there spreading the word about our products and services, meeting and greeting, delivering an expert elevator pitch to whomever will listen and positioning ourselves as experts within our field.

If the gods smile, our efforts will deliver unto us a decision maker and a real sales call. How can one increase the odds of making that happen? Effective prospecting is the method.  Prospecting is a vital function for all Freelancers and business owners.  If  the goal is to have a successful business, then we must make a practice of continually replenishing our sources of potential clients.

First,  let us dispense with the myths.  Prospecting is NOT sales.  Prospecting is a tactical function of sales.   It is the process of identifying and qualifying businesses and individuals who have the potential to become paying customers.

Prospecting is NOT a numbers game. Time = money and you have no time to chase so-called prospects who have a low probability of becoming a customer. You want only those with motive and money to hire you or patronize your business.

Prospecting need NOT be hugely time consuming.  Plan to budget about 15% of your weekly or monthly calendar for prospecting.  Make the time to keep your pipeline filled.

Contrary to common belief,  prospecting is NECESSARY even when billable hours are high and sales are strong.  Because business always waxes and wanes,  it is important to use the good times to create opportunities that will sustain  in the lean times.

So let’s think strategically about the prospecting function.  Start by identifying your key customer groups.  Do you typically work within certain industries? Why not target other businesses within that industry as likely prospects? Your experience within those industries will provide the trust factor that your prospects will appreciate.  You will  know the usual priorities, concerns and preferred benefits.

Are you a member of a business association? Do you have visibility within the group? Are any of the members your clients? Have you made good referrals for any members? Think about  which member businesses could benefit from using your  products or services.  Leverage your proximity to these targets to learn more about their businesses.  Once again, the trust factor will be on your side, especially if a member or two are clients of yours or you are visible in the association.

This approach can also work with job titles.  For instance, who usually hires you–the VP of marketing, the CEO, the CFO, or the director of development? Target that title as you prospect.  Prior experience will have taught you what will resonate with these individuals, thus adding to your  credibility.

Once you’ve developed a list of targets, devise an approach.  Might any of your colleagues have contacts within these organizations? Do company names appear in the online member listing of the chamber of commerce or neighborhood business association? Is there a trade show coming up that the prospect –or company representative–  may possibly attend (trade show sponsors are ususally listed on the show’s website)?

When you meet someone at the targeted company (oh, happy day!), let the contact/prospect know that you’ve done your homework and see possible alignment between their business and your product.  Emphasize outcomes and benefits.  Aim to schedule a time for further discussion with either the ultimate prospect or someone who can substantively influence the decision.

If you are met with an objection, handle it with aplomb.  If the answer is, “we already have someone” inquire about current or recent projects.  Offer a comment or two that displays your expertise in the subject. You may discover that the objection was just a smoke screen.

If the answer is ” I have to think about it”,  let the person know that you  respect their desire to make an informed decision.  Ask what information might assist the decision, who else in the organization you might speak with and when you can follow up?

The objective is to get a dialogue going and not get shut down.  If you choose your prospects wisely and plan a good approach,  you are guaranteed to bring in at least a mid-level client nearly every quarter.  Now get busy!

More next week,

Kim

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Starting A Business? Consider Your Marketing Strategy Part I

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Once you have identified your customers, done some detective work to check out your main competitors and positioned yourself relative to them, thus claiming a niche for your company, you are ready to devise a marketing plan for your business venture.

The marketing plan supplies the road map that you will use to reach the target customers.  Sales strategy, pricing, product or service positioning, advertising and distribution channels must all be accounted for in relation to what target customers will accept.  The idea is to convince customers that buying your services or products will give them benefits that are worth the cost.

PRODUCT/SERVICE STRATEGY

Describe how your products or services offer more advantages to the customer than what  is offered by competitors.  What’s the hook that will bring customers to your door?

Research the product features and attributes that are important to target customers and what they are willing to pay for them.  Dig a little deeper and brainstorm the benefits—those unspoken and often emotional motivators that will drive customers to buy from or hire you.

What is the challenge or need that customers  face, what is the “pain” that they’re in? Your company must provide solutions that customers determine to be useful. Think about what customers might value in the long run, but remember that tastes and perceived needs are fluid and therefore subject to change

PRICING

Pricing is a tricky issue, especially for consultants and professional service providers.  It may be difficult to find out what competitors charge,  so there is no framework for  comparison.

If you have relationships with those who hire for similar services,  inquire as to what they pay so that you can set your price points.  Competitors are unlikely to help you with pricing, but colleagues who offer similar services may give some guidance.  If you plan to sell a tangible product, canvass the marketplace and learn how similarly positioned products are priced.

Be advised that  it is risky to underprice.  In general, it is not a great way to rapidly build a client list or gain market share.  In services especially, clients may wonder why your rate is so cheap—are you unqualified?  You don’t want to give the impression that you’re less than first rate.  Moreover, raising prices in the future may be met with customer resistance.

Underpricing will also negatively impact your cash flow.  You could find yourself spinning your wheels like mad, overwhelmed with lots of orders, but losing money overall because you have not fully accounted for the cost of goods sold, be it product production and marketing costs or the time and creative energy it costs you to fulfill a contract assignment.

Unless you’re in the grocery business, where profit margins are traditionally thin, make sure that your pricing strategy builds in a profit margin that will sustain the business and eventually you too.

DISTRIBUTION CHANNELS

Think about how your products or services will flow from their source and reach the target customers.  Examine how customers currently buy your type of product.

Do they buy primarily online, from catalogues, from a physical location, by referrals from trusted sources, by contract bids or at trade shows?  Can you access the preferred distribution channel?  How much will it cost you?

Service providers and Freelance consultants must also develop a distribution strategy, so that potential clients and referral sources can be reached.  If you work in professional services, you are on the coattails of the firm’s marketing efforts.  However, these days even junior associates are expected to bring in clients.

Networking and other relationship building strategies will be helpful here.  Put yourself in the places where clients and good referral sources can be found.   Work an expert elevator pitch and see who you can meet.  Visibility counts, so speaking opportunities and leadership roles in business groups will also be important for self promotion.

I’ll be back with Part II of Marketing Strategies next week,
Kim