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The
Guerrilla Consultant -
a newsletter dedicated to applying the principles
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consultants.
The Incumbent's Advantage
Ask any politician about the power of incumbency and you're likely to hear that the odds are usually stacked in the incumbent's favor, but that it doesn't take much for the hold on incumbency to slip away with little warning.
Consultants face a similar challenge--how to grow an ongoing, profitable relationship with a client, instead of doing one project and moving on to the next client.
Establishing those long-term relationships is easier said than done, though. And that's the topic of this month's article.
Enjoy the article, and
let
me know what you think.
Mike
McLaughlin
Co-Author, Guerrilla Marketing for Consultants Principal, MindShare Consulting LLC
Making the Second Sale and Beyond
Walk into almost any shopping mall and you'll notice the mall owner's business strategy--anchor the business with a small number of high-value, well-established outlets and fill the remaining spaces with smaller merchants.
It's easy to get why this strategy makes sense. With a predictable cash flow from anchor clients, the mall owner is freer to take risks on less well-known and maybe less permanent enterprises.
Savvy consultants also seek long-term relationships with a small number of "anchor" clients, while continuing to serve others. But establishing the relationships that lead to an ongoing stream of future work is often more difficult than landing the first job. A few tips can pave the way to success.
Perception = Reality
Often, the perception of a consultant's performance bears little resemblance to reality. But if a consultant does a good job and the client doesn't perceive it that way, getting follow-on work will be a real stretch.
In an extreme example, a consultant with a rare medical condition dozed off in a client meeting. Even though the client knew of this consultant's condition and valued his work, the consultant never shook his reputation for being paid to sleep.
For many consultants, a gap exists between the perception they'd like to create and the one they end up saddled with. And that gap can undercut their ability to develop lasting relationships. The sleeping consultant knew his days were numbered, but some client situations aren't as clear cut.
Closing the perception-reality gap can be one of the most productive steps you take to move a relationship to the next level. In many cases, you can close that gap by opening honest lines of communication--and acting on the feedback you receive.
Almost all consultants ask their clients how they are doing, either verbally or through a more formal evaluation process. Some take it further. For example, you might ask other executives in the organization, who are not directly involved in the project, about their perceptions.
| "For many consultants, a gap exists between the perception they'd like to create and the one they end up saddled with." |
Granted, you must sort out substantive feedback from fiction. Opinions from diverse sources can make that job easier.
Like everyone, consultants don't want to hear that they are less than perfect. If you block out or rationalize negative client perceptions, you miss the chance to get in sync with the client's reality.
Take Them to the Future...Not Dinner
Don't get me wrong, many prospective clients love being wooed by consultants, whether it's a dinner, show, golf, or some other event. You have to assess what's best for your relationship. But don't lose sight of the relative marketing power of insight over fun and games.
Any consultant can become a client's meal ticket, but not all can deliver essential insights that make a client sit up and take notice. One consultant, who rarely takes a client out of the office for any kind of socializing, had an opportunity to meet the senior operations executive of a regional paper manufacturer.
Using a white board, the consultant sketched a rough map and circled the geographic reach of the client's existing distribution network. Then, using a different colored marker, he illustrated three, low-cost transportation routes that connected a competitor's warehouses to the client's market, emphasizing the competitive threat on the horizon.
After a discussion of the implications of this potential development, the client treated the consultant to dinner.
There's nothing wrong with entertaining a client. When an important issue arises, though, the valued consultant will likely have the project underway before the schmoozer learns about the opportunity.
What Goes Around Comes Around
If you talk to enough clients, you'll hear at least one arrogant consultant story. Often, the story has a familiar theme: The consultant serves only the executive sponsor and runs roughshod over others in the client's organization.
Some consultants don't know the difference between professional distance, which helps objectivity, and aloofness. After wrapping up an assessment project, a consultant was given the follow-on work to implement the recommendations in the report.
As the consultant kicked off the project, she was overwhelmed by the wall of resistance put up by client team members who felt they had been snubbed during the assessment phase. The client and consultant eventually reached a truce, but the project cost more and took longer than anyone anticipated. And the consultant wasn't asked to propose on future work.
| "In some situations, it's not easy to know if the client loves you and your work, or can't wait to get you out the door." |
Most clients don't expect to become best friends with consultants, but they do want to be treated with respect. Besides, consultants don't have all the answers. Why behave like a know-it-all and alienate people who can help?
In ongoing relationships with clients, little gaffes can make a big difference. You'll produce better results if you are part of the client team, not set apart by your behavior.
Read the Signals
Successful consultants don't take anything at face value. The best ones are trained to look beyond the obvious in search of real issues and their causes. Looking beneath the surface to understand how a client relationship is maturing is no exception.
In some situations, it's not easy to know if the client loves you and your work, or can't wait to get you out the door. In either case, relying solely on your gut instinct as a guide to how the client relationship is evolving is like driving blindfolded with a defective steering wheel.
Some client communications about your relationship are subtle. Unless the consultant is grossly incompetent, few clients are interested in rocking the boat as a project unfolds. Clients are usually interested in achieving results, even if they know you'll never be back again. In other cases, clients may mute their enthusiasm for a consultant's performance in an effort to head off complacent behavior or higher fees.
Consultants do interpret the client behavior they observe, but most clients also send more subtle, unmistakable signals about how the relationship is progressing.
If you're experiencing three or more of these symptoms, for example, you may have a relationship problem brewing:
- Increasing client "issues" with your work
- Fewer invitations to meetings
- Written communications replace meetings
- The meetings you do attend are stiffer, more formal
- Longer time between call backs
- Increased competitive activity
- More looking over your shoulder, client micromanaging
- Client delegates managing the team to surrogates
- Fewer referrals or introductions to others
- Payments are slow or delayed
Keep your eyes and ears open and respond to all the signals you're receiving, not just the obvious ones.
Luck Happens... But Don't Count on It
It's been said that part of the secret to winning is just showing up. More than a handful of consultants have landed substantial projects by being in the right place at the right time. If it's true that showing up is half the battle, then showing up with a proactive plan pointed toward a clear goal is even better.
For the clients you believe are candidates for anchor relationships, don't cut corners. Create a relationship strategy that outlines how you'd like to see the relationship mature. Ask yourself questions such as: What do I need to do to build trust, credibility, and my value as an advisor to this client? How can I educate the client about the value and services I offer in ways that benefit the client and my practice? Who else in the organization would find benefit in my work?
A relationship strategy doesn't need to be elaborate, though it is for some consultants. What's important is to be proactive about your relationships. Show up with a plan and watch how much you win.
An existing relationship with a client rarely means that the hard work of digging up sales leads and closing sales is any easier. In some cases, it's harder. But, like politicians, incumbent consultants have built-in advantages--if they know how to use them.
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