Tag Archives: Client

How Do You Enforce Meeting Attendance? Six Suggestions

Situation: A company has many meetings. Organizers calendar meetings on Salesforce.com. Despite this, participants show up late, and sometimes not at all. When the right people aren’t present they must re-schedule the meetings. This ends up wasting valuable time for managers. How do you enforce meeting attendance?

Advice from the CEOs:

  • The answer depends upon your company culture and priorities.
  • If you have a production-focused culture, absence and tardiness may not be tolerable. Companies with this type of culture can take the following steps:
    • Call out late arrivals and absences immediately – the first time take them aside and explain that tardiness or absence is not excusable.
    • Called out repeat offenders on the spot!
    • One company has a policy that if you arrive late you stand for the period that you’re late. This has been very effective.
    • The example that you set reinforces desired behavior for the others.
  • In client-centered service organizations the rules may be different. Some companies feel that customer calls and meeting customers’ needs comes first, even if it means that the meeting starts without a key participant.
  • Match your meeting discipline to your culture.
  • The quality of meeting is dependent on quality of the meeting facilitator. Make sure that you have the right people leading the meetings to keep them on time and on topic. This may improve meeting timeliness.
  • If this is a challenge for your company, meet with those involved. Clarify the problem and confirm the reality of problem; then agree on the solution and gain their commitment to comply.

How Do You Test a New Service Delivery Model? Seven Thoughts

Situation: A company targets mid-sized clients with pricing that is similar to its competitors. They believe that their principal differentiation is their relationship with their clients. The problem is that this is also what all of their competitors claim. They are considering testing a new pricing concept – a monthly fixed fee that will provide a pre-negotiated set of services at a favorable discount, with a weekly presence in their clients’ offices. How to you test a new service delivery model?

Advice from the CEOs:

  • This looks like an appealing concept. With this arrangement there is no clock ticking and the client may view your various services as a more open menu of options available to them.
  • Another company has a similar relationship with their CPA firm and have both enjoyed this and are using more services from this firm.
  • Just a regular presence in the office is worth the retainer.
  • Another appeal is that this allows regular participation in management and Board meetings.
  • Another CEO offers a similar program for her professional service company’s clients and have found it successful.
  • Since there appears to be strong support for this model within the group, what is the best way to implement this new offer?
    • Negotiate an initial monthly rate for a set level of services as a retainer without a clock.
    • Agree to a periodic review and adjustment of services and pricing – perhaps quarterly – based on the time and services that have been provided during the preceding period.
  • How do you sell this program to those within your own company who are skeptical?
    • Try the program with three clients on a limited trial basis and measure it.

How Do You Respond to Unreasonable Demands? Three Thoughts

Situation: A CEO has observed an increase in the frequency of demands for last minute meetings from an important foreign client – sometimes with 12-18 hours’ notice. Requests for these meetings are often the evening before the requested meeting and with no regard to preexisting calendars. The client always says that they have sound reasons for the request. What are the likely consequences of push-back? How do you respond to unreasonable client demands?

Advice from the CEOs:

  • While allowance must be made for specific circumstances, there is a tendency within some cultures to press for special consideration. Part of this may be a negotiating tactic. One CEO has found that when he pushes back, the side requesting special consideration often yields to his needs and backs off the special request.
  • Treat these as you would similar requests from a domestic investor or client. Point out the late call and that you are already booked for the time requested. Ask whether there is any flexibility to the requester schedule and offer available time alternatives. Listen closely to the response and proceed accordingly.
  • Depending on the importance of the client and individual calling, some CEOs prefer to comply with requests like this, at least the first few times that such requests are made. However, when the requests become a regular occurrence, as described above, they rely on the recommendations outlined above.

 

How Do You Set Up Co-Development Partnerships? Five Thoughts

Situation: A company has clients who are interested in projects for which the company’s partners already have partial designs. There is an opportunity to leverage these partial designs into development of full solutions for their clients. How should the company approach this in a way that satisfies their customers and is fair to their partners? How do you set up co-development partnerships?

Advice from the CEOs:

  • Given this opportunity it is no longer important who performed what part of the development. As long as your partners have quoted you what they believe to be a fair price for their development pieces, you are free to accept their price, complete development to your clients’ specifications, and sell the full solution to the client at market prices.
  • What you bring to the table is the opportunity to rapidly monetize the technology. This is something that your partners can’t do, so by filling this role you are acting in the interest of all parties.
  • What you charge for your work and the full solution depends on the potential value to the client. Time is money, and delivery now is worth a premium price to a client who needs your solution and wants to release their product as soon as possible.
  • This strategy is particularly applicable to early stage companies who need to release their initial products and start generating revenue.
  • Take a note from Bill Gates – sell the product for a good price and then buy or acquire the supply.

How Do You Communicate Your Value Proposition? Four Methods

Situation: A company offers a service that can potentially boost clients’ revenues by 50% or more. However, the CEO has found it difficult to communicate this value proposition to potential clients. While some clients understand and have bought the company’s service, too many others have not. How do you communicate your value proposition?

Advice from the CEOs:

  • Not everybody will buy any service, no matter what advantages it offers. Here are steps to take:
    • Make a list of clients that you have closed, and those that you have not.
    • Identify whether there is a difference in the profile of the clients that you’ve closed and those that you didn’t.
    • From the commonalities among those clients that have accepted your value proposition, create an ideal customer profile.
    • Use this profile to pre-qualify potential new clients and assure that they meet this profile before investing in sales efforts.

By focusing sales efforts on those clients that you are most likely to close, you will improve your close rate and also reduce your sales cost to revenue ratio.

  • As you cultivate a new prospect, identify those individuals within the client company who can block your sale. Make these individuals heroes for supporting your offering. Offer them appealing learning retreats. Offer augmentations that appeal to the unique needs of the client. Raise your prices to fund these augmentations, but more than cover these costs with boosted revenues to the client.
  • Focus on the key WIIFM – “What’s in it for me” – that will appeal to key purchase influencers. Enlist these people as your evangelists within the client.
  • Emphasize not just financial benefits, but quality of life benefits that will accrue to clients through your service. Back this with a guarantee that you feel comfortable making.

Is It Time to Raise Prices? Six Suggestions

Situation: A company will be losing a client in the near future. However, the client is still buying from the company as sole source supplier while they develop alternate suppliers. Should the company raise prices, and if so by how much? Is it timely to raise prices?

Advice from the CEOs:

  • A factor in this decision will be your history of raising prices in the past. If you have increased prices to keep pace with inflation and your costs, look at the frequency and magnitude of these increases. Provided that the increase that you are considering is not out of line with past practice, it should not come as a surprise to your client. If you have not raises prices in the past, be prepared for push-back.
  • However you decide, be sure to maintain the relationship. You have a long relationship with this client and you never know what their future needs will be. As to the amount of the price increase, if they are reducing the volume of their purchases, you can raise your prices by 10-20% based on the loss of volume to cover your overhead.
  • Be prepared with logical arguments to explain the price increase to the client.
  • If your discussions with the client’s representative have become tense, it may be better to have someone else within your company lead this discussion. It’s OK to tie the emotional component – having to lay-off employees, etc, – into your story.
  • If you have an advocate within the client company, involve them in the discussion and give your advocate the ammunition that they need to support your case.
  • Adjust your staff and costs to fit the new reality.

How Do You Best Leverage Networking? Six Suggestions

Situation: A company is actively marketing to prospective clients and also engages in networking. They want to assure that they are up to speed with current trends in marketing. What are best practices for following up on marketing or networking contacts? How do you best leverage networking?

Advice from the CEOs:

  • Timing is everything. A prospective client may or may not have an immediate need for your product or service, but may develop a need in the future. Assure that you have a program that provides ongoing follow up via:
    • Social Media
    • Phone calls
    • Emails
    • Regular personal follow up
  • Initial follow up should be rapid. Ask for permission to follow-up and set the time frame when you meet a new prospective client. Ask how the prospect prefers for you to stay in touch. Do they prefer newsletters follow-up via social media, or personal follow-up?
  • Draft letter, email and social media communication templates ahead of time so that rapid follow-up is easy.
  • Use an electronic or print newsletter to stay in touch with prospects. Social media have become an increasingly important way to stay in touch with networking contacts.
    • Basic newsletters are usually 2-3 pages, or a one pager with links to see full articles.
  • Look at contact management software: for example Salesforce.com or ACT.
    • Basic sales and marketing subscriptions from Salesforce.com start at $25/user/mo. for up to 5 users, or $65/user/mo. for a complete customer relations management (CRM) system.
  • Quality of collateral is important. It is a face of your company. High quality collateral should have a consistent look and feel, and should remind the prospect why they were interested in you and your company in the first place.

How Do You Expand Your Business Model? Seven Recommendations

Situation: To date, a company has performed a single set of services focused on collection and delivery of a stream of raw data to its clients. The CEO wants to add a consulting service based on the expertise that the company has developed over the years. The CEO seeks input on both how to position this new service, and how to organize it, either within or separately from the current business. How do you expand your business model?

Advice from the CEOs:

  • Consulting services can be offered at a premium to current services because the company will be offering analysis and recommendations for a solution, instead of just raw data. Intelligence is more valuable than raw data.
  • Offer the consulting service on a project rather than an hourly basis. For example, price a project at $10k for the consulting package instead of $200/hour for data collection and reporting.
  • To add weight to the consulting offering, provide final reports and recommendations as a professional, written document supplemented by a presentation.
  • Test the concept and early options for the consulting service with existing clients.
  • Create a new division for the consulting service so the customer sees it as an additional option and value that the company provides. This will change both the branding and image of the business.
  • To increase the opportunity for success, develop a full business plan for the consulting model.
  • Focus on the new consulting business with the same discipline as the current data business.

How Do You Respond to a Competitor’s Sales Tactic? Six Ideas

Situation: A company has learned that a competitor has cloned their client development approach. This approach enabled the company to gain early market share. They have since moved up-market and have enhanced their sales tactics. How should the company respond to the competitor’s tactic?

Advice from the CEOs:

  • Reconnect with the market contacts that got you where you are. Be sure that they are aware of your track record, the value that you provide your clients, and reinforce your current market development focus. Now that you are established, position yourself as the proven producer who consistently produces results.
  • Study what the competitor is doing, who their target customer is, their close rates, and what if anything they are doing to enhance their close rates. Learn from them and copy or improve on their practices where this will yield benefit.
  • If your sales development is based on referrals, enhance the rewards to contacts who bring you new business in your prime target markets.
  • Your principal concern may not be your client base, which is likely unaware of the differences in your versus your competitor’s approaches, but in the referral structure that is your primary source of new business. Focus effort and resources to shore up your relationship with your referral base.
  • Focus on your strengths – performance and excellence in managing client relationships.
  • If the competitor is focusing on down market accounts that you no longer cultivate, then expect them to succeed in this market. Become the provider of choice to up market accounts and the natural referral choice for these accounts. If the competitor stumbles, you may pick up unexpected business.

How Do You Inform a Client about a Problem? Five Solutions

Situation: A company provides staff for a client. Overall the client has been pleased with the staff provided, and only a couple of individuals have had to be replaced. The client was recently presented with an individual that they seem to like; however, the company has since developed reservations about this candidate. How do you inform a client about a potential problem?

Advice from the CEOs:

  • Meet with this individual face to face or via video conference. During the interview, tactfully ask questions that will either disqualify the candidate or satisfy your concerns. Only continue to present this candidate to the client if you are thoroughly satisfied that they can meet the client’s needs and will represent you well.
  • Ask the client for their impression of the individual. If they do not express any concerns, then your own concerns may be overblown.
  • The client will require the candidate to be trained by them prior to fully bringing them on-board. This will provide another opportunity for the client to say yea or nay. If the individual completes training to the client’s satisfaction, then once again your concerns may not be justified.
  • In any communications with the client, take care to voice only concerns that you can substantiate. Otherwise, you might expose yourself to suit by the candidate.
  • Independent of this situation, adjust your selection process to require face to face or video conference interviews. This will prevent the recurrence of future situations like this one.