Relationship Management: Retaining a Client

It's part of good relationship management: retaining that important client. I had a couple of lessons this week that helped me understand this concept.

Statistics show that it costs more to gain a new client that it does to retain a client. Plus the longer you have a client, the better you understand their business, their markets and the people inside and outside of the company.

My lessons centered on these points:

• When a client calls or asks, you respond and deliver without question
• Be honest, if you can't do something, tell them what you can do
• Incumbent clients come first before prospects

In a weekly meeting with my largest client, I was asked for a specific answer to a detailed question. I had another opportunity I could have pursued between when the question was asked and when it was to be answered, but I dropped that situation because I needed to commit time to the incumbent.

The honesty cam in when I had to tell that prospect I couldn't help them. But I didn't jsut abandon them: I found some alternatives and put them in touch with some suggested partners who could deliver the quality they deserved. All without charging a few (I want to have the chance to work with them again).

My commitment is with my existing client. They hired me in good faith and I need to deliver. The prospect was just that: unproven to each other, the work could go away and so would the unattended work with the incumbent.

I made a choice. Do you have similar situations?

Relentless

Nix the hard sell

Keep in mind that relationship selling is just that--selling you, not a product or commodity.

If you are into networking to generate sales, be patient. And I'll pull this word out--classy. If you go to an event with order pad in hand, well, knock it off. If the next words out of your mouth after, "Hi, may name is..." are either "where can I send my resume?" or "would you be interested in buying..." then you are not getting this.

I once worked for a company that swore up and down they were relationship sellers. Well, yes, they did sell to people they had relationships with. However, the business was a manufacturing concern at it's core and relied on volume sales of products ("stuff stackers" as one colleague describes them). Their approach was to meet folks, but write them off if they didn't place an order.

To be honest, there is a place for that style. Usually, longer sales cycles are the best fit for true relationship selling as described in this space. True, you have to close the sale ventually. Just don't kill future sales for the instant gratification of the immediate sale.

Relentless

Returning phone calls

It is so simple of an act: returning the call of someone who has called you.

I know many of us have an aversion to the phone. But, let's face it, somebody called you first. And now you owe them the courtesy of returning their call.

It's easy. And can be the difference between profit and a loss. Sure, sometimes it's just you calling back a friend (and that's how you really need to look at it), but many times it is a client calling back--and that's business.

In the past, I've actually gained clients because I called back when they hadn't heard from their incumbent account executive. This simple (and courteous) act can mean a lot to the receipient. And you.

So, pick up the phone when it rings. Return the call from the voicemail:

• Promptly (with a few hours at the most)
• With a smile (really, smile when you talk)
• Prepared to answer any questions. Or pose them.
• Remember who placed the first call.
• Be prepared with correct names and any facts your caller may be interested in.

Relentless

Burning bridges

Let's just follow this title with "don't."

Everyone you encounter is really in your network. And everyone in your network is valuable. You never know who will lead you to new business or who you might lead to something.

You never know who you are going to work with or work for. I remember parting ways with a supplier on not-so-good terms (he wasn't happy I was moving my business). Two years later this same supplier's company had been purchased by my company and we ended up being co-workers. We did get along because of a long-standing relationship, but it started out awkward.

In another case, a former supervisor took over a company that I called on as a sales person. Because we had worked together, we understood each other's styles and had a strong working relationship.

And, lastly, a quote (unattributed):

"Be careful when you burn that bridge; you may be the one you are standing on."

Relentless