Relationships & Profits
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Transcript of Relationships & Profits
Copyright 2015, Knowledgence Associates
LISA DENNIS, PRESIDENT
Building Stronger Relationships,
Building Stronger Profits
Workbook
Copyright 2015, Knowledgence Associates
Today’s Presenter
Lisa Dennis, President of Knowledgence Associates, brings over twenty-five years of marketing and sales to client engagements. She has hands-on experience with both the marketing and selling of business-to-business and business-to-consumer products and services.
The focus of Knowledgence Associates is the transforming of marketing, sales, and customer service information into customer knowledge. That transformation enables clients to truly “see the world through the customers’ eyes.”
The firm’s consulting practice includes marketing strategy, marketing campaign design & execution, value proposition development, relationship and partner marketing, customer service assessment programs, sales effectiveness assessments, and sales & service training.
Copyright 2015, Knowledgence Associates
Agenda Relationship
Marketing, Selling
Anatomy of a business relationship
Relationship Stages
Engagement Options
Strategies to Build
Tactics to Execute
Benchmarking & Assessing
Copyright 2015, Knowledgence Associates
Relationship Marketing, Sales & Service
Definition: A set of strategies and processes that enables an organization to identify, acquire, retain, and nurture profitable customers by building and maintaining long-term relationships with them.
Activities aimed at:• Building customer loyalty (winning and keeping customers) • Providing value to all parties involved in the relationship• Demonstrating customer knowledge and understanding
Key Aspects:• Strategic approach• Tactics aimed at 1-to-1, 1-to-few • Process oriented and cross-functional• Value-creating for buyer and seller• Focus is building relationships over time• Relationships can be differentiator in highly competitive markets• Must have both qualitative & quantitative measures
Copyright 2015, Knowledgence Associates
Relationship Marketing, Sales & Service
What it is:
• Moving a target along the RM continuum
• Relationship has define-able stages
• Marketers and sellers meet targets “where they are”
• Blend-able with other marketing and sales approaches
• Relies on internal partnership of marketing and sales organization
What it isn’t:
• Transactional• Short-term• Stand-alone• Marketing-only• Sales-only• Single campaign• Not a replacement for
other marketing methods
Copyright 2015, Knowledgence Associates
Inventory of Relationship Development
Factor Meaning
Awareness Pre- exchange, recognition, no interaction
Exploration Testing period, search and trial activities, determine compatibility
Expansion Increase in derived benefits, interdependence, risk taking, testing & reaffirming perceptions
Commitment Achieved value, satisfaction, lower focus on alternatives
Dissolution Can occur at any stage in the relationship development process
Enhancers Communication, Cooperation, Conflict Resolution
Source: Inventory of Relationship Development, Dwyer, Shurr and Oh
Copyright 2015, Knowledgence Associates
PERSONALIZING AN EMAIL SELDOM A RELATIONSHIP MAKES.
Anatomy of a Business Relationship
Real Business Relationships:
Factor Meaning
Bi-directional 2 way response, mutual awareness
Require behavior changes
In tangible and intangible ways
Benefit both parties Value offsetting costs of participation
Interactive Exchange of information content
Changeable over time Iterative – leading to increased efficiency, convenience, comfort
Trust-based Both parties act in mutual interest
Ultimately Unique Real relationships are not 1-to-many or 1–to-few. So programs have to feel 1-to-1 even no matter “how” you deliver them
Copyright 2015, Knowledgence Associates
Copyright 2015, Knowledgence Associates
Relationships are on a Continuum
- Discrete- No history- No defined future- Limited
communication- Narrow content- Every interaction is
“new”
- Connected- Past transactions- Future transactions- Repeated, related
communication- Broad content- Interactions build
over time
TransactionalCollaborative
Copyright 2015, Knowledgence Associates
Effective Relationship Marketing/Selling
• Communicating with the account / individual “where they are”.
• Understanding how needs/desires change as the relationship stages change.
• Delivery of marketing/sales/service activities tailored to fit that path.
• Assessing/knowing what stage the account/individual is in
• Deciding the optimal mix of marketing / sales / service activities at stage (1 size does not fit all)
• Executing the appropriate activities based on stage and on strategy (acquisition, or expand the footprint, retention)
Requires:
Copyright 2015, Knowledgence Associates
FIRST BASE, SECOND BASE, AND THIRD BASE STILL COUNT!
Relationship Stages
Copyright 2015, Knowledgence Associates
Considerations for Selecting/Defining Stages
• Stages should reflect exterior reality, not internal desire
• Buying cycle ≠ the relationship cycle
• Actual progression of a relationship in your industry/sector
• Trusted advisor status ►►► what are the stages of the buyer’s experience to get there
• IMPACT - The language we use to name and define each stage impacts the application of appropriate marketing strategy and tactics for each stage
Relationship
Definitions
Stages
Copyright 2015, Knowledgence Associates
Relationship Stages
Co-Creator
Champion
Collaborator
Customer
Explorer
Not every RelationshipReachesEvery Stage
Copyright 2015, Knowledgence Associates
Relationship Stages - Definitions
Explorer Customer Collaborator Champion Co-Creator
Mutual awareness
Attraction
Pre-sale
Highly exploratory
Initial discovery
Potential needs
Expectations
Applicable expertise
Significant interaction
Validation of the client's decision
Industry knowledge
Client knowledge
Customer satisfaction
Build Trust
Mutual goals realized
Intimate dealings
Mutual credibility
Increased Stability
Revenue Growth
Internal and external introductions
References & Testimonials
Relationship extends
Overt supporter
Willingness to represent to
Other internal buyers,
External professional network
Deeper loyalty
Collaboration
Significant trust
Aspirational in nature
Bigger than the sum of individual relationships
Embedded within respective businesses
Cooperate at a highly strategic level,
Driving mutual innovation
Copyright 2015, Knowledgence Associates
Relationship Stages - Definitions
Explorer Customer Collaborator Champion Co-Creator
Mutual awareness
Attraction
Pre-sale
Highly exploratory
Initial discovery
Potential needs
Expectations
Applicable expertise
Significant interaction
Validation of the client's decision
Industry knowledge
Client knowledge
Customer satisfaction
Build Trust
Mutual goals realized
Intimate dealings
Mutual credibility
Increased Stability
Revenue Growth
Internal and external introductions
References & Testimonials
Relationship extends
Overt supporter
Willingness to represent to
Other internal buyers,
External professional network
Deeper loyalty
Collaboration
Significant trust
Aspirational in nature
Bigger than the sum of individual relationships
Embedded within respective businesses
Cooperate at a highly strategic level,
Driving mutual innovation
Copyright 2015, Knowledgence Associates
Relationship Stages - Definitions
Explorer Customer Collaborator Champion Co-Creator
Mutual awareness
Attraction
Pre-sale
Highly exploratory
Initial discovery
Potential needs
Expectations
Applicable expertise
Significant interaction
Validation of the client's decision
Industry knowledge
Client knowledge
Customer satisfaction
Build Trust
Mutual goals realized
Intimate dealings
Mutual credibility
Increased Stability
Revenue Growth
Internal and external introductions
References & Testimonials
Relationship extends
Overt supporter
Willingness to represent to
Other internal buyers,
External professional network
Deeper loyalty
Collaboration
Significant trust
Aspirational in nature
Bigger than the sum of individual relationships
Embedded within respective businesses
Cooperate at a highly strategic level,
Driving mutual innovation
Copyright 2015, Knowledgence Associates
Relationship Stages - Definitions
Explorer Customer Collaborator Champion Co-Creator
Mutual awareness
Attraction
Pre-sale
Highly exploratory
Initial discovery
Potential needs
Expectations
Applicable expertise
Significant interaction
Validation of the client's decision
Industry knowledge
Client knowledge
Customer satisfaction
Build Trust
Mutual goals realized
Intimate dealings
Mutual credibility
Increased Stability
Revenue Growth
Internal and external introductions
References & Testimonials
Relationship extends
Overt supporter
Willingness to represent to
Other internal buyers,
External professional network
Deeper loyalty
Collaboration
Significant trust
Aspirational in nature
Bigger than the sum of individual relationships
Embedded within respective businesses
Cooperate at a highly strategic level,
Driving mutual innovation
Copyright 2015, Knowledgence Associates
Relationship Stages - Definitions
Explorer Customer Collaborator Champion Co-Creator
Mutual awareness
Attraction
Pre-sale
Highly exploratory
Initial discovery
Potential needs
Expectations
Applicable expertise
Significant interaction
Validation of the customer’s decision
Deeper industry knowledge
Deeper customer knowledge
Customer satisfaction
Build Trust
Mutual goals realized
Intimate dealings
Mutual credibility
Increased Stability
Revenue Growth
Internal and external introductions
References & Testimonials
Relationship extends
Overt supporter
Willingness to represent to
Other internal buyers,
External professional network
Deeper loyalty
Collaboration
Significant trust
Aspirational in nature
Bigger than the sum of individual relationships
Embedded within respective businesses
Cooperate at a highly strategic level,
Driving mutual innovation
Copyright 2015, Knowledgence Associates
YOU CAN’T MANAGE WHAT YOU DON’T MEASURE
Benchmarking & Assessing
Copyright 2015, Knowledgence Associates
Picking Your Targets
Which relationships in the account are worth the investment of resources in tailored relationship marketing, selling and service?
Not all accounts need(or deserve) RM
Remember, it’s a overlayto existing sales, marketing and service efforts
Consider role, recency, access tobudget, tenure in organization
Copyright 2015, Knowledgence Associates
Understanding Targets and Stages
- Who are the targets?
- Identified Accounts- Existing individual customers- Targeted new prospects
- What imperatives do they have?
- What do they typically respond to?
- What stage are they at?
Move them from a homogenous group to like groupings of relationships:
1. Select programs for the right targets AT THE STAGE THEY ARE IN.
2. Deliver a stream of marketing, sales and service activities that are stage appropriate and drive the relationship forward to the next stage.
Copyright 2015, Knowledgence Associates
Tracking the Relationship
RELATIONSHIP MARKETING & SALES ACTIVITY RESULTS OCCUR OVER TIME.
After benchmark, need to reassess on a periodic basis – quarterly or bi-annually.
Way to gauge how your RM activities are moving the needle on the state of the relationship.
PATIENCE IS KEY!!
Copyright 2015, Knowledgence Associates
DON’T ASSUME THAT I WANT TO DO WHAT YOU WANT TO DO.
Engagement Options
Copyright 2015, Knowledgence Associates
Key ‘Relationship’ Questions to Ask
Team/Peer
Who else in the organization does the targeted relationship plug into?
Rep/ Individual
New sales rep? Or new player in the account, or both? What can be leveraged or captured from previous connections/relationships?
Interaction
How is the function interacting with other functions in the organization? Where do departments have to play together?
Level What does the level of conversation need to be at each stage for this target?
Value What relevant role value statements need to be communicated by stage with this target?
Decision Role
What role do they play in the decision making process that may impact messaging and approach?
Copyright 2015, Knowledgence Associates
Engagement Types
Relationship Marketing , Sales & Service
One-to-One
One- to-Few
Peer-to-Peer
External Influencer
Brand, Field, Corporate Marketing:
One-to-Many
Consider how your target typically engages – and make informed choices on the approach and the messages they want to hear.
Copyright 2015, Knowledgence Associates
WITHOUT A PLAN, ANY ROADMIGHT GET YOU THERE…
OR IT MIGHT NOT.
Strategies to Build
Copyright 2015, Knowledgence Associates
Building Relationships isn’t Easy
Barriers are inherent in the furthering of any business relationship
Understand what the barriers are in your market or segment
Take a look at any specific barriers by title or role
Factor this into the selection of strategies you will apply to this target
How will I overcome or leverage the barrier?
Copyright 2015, Knowledgence Associates
Consider Potential Barriers
BARRIER Description
C-Level Hard to engage. Work gets done below the C-Level. Key challenge to get regular access to these people.
Finance Bi-directional relationship: Process (signature authority over others); and Commercial (possible opportunity in Finance).Also – have strong external consulting relationships that they go to for IT input
Operations
Bi-directional relationship: Process (signature authority or input over others); Commercial – (possible opportunity in Operations).
Account vs. Individual
Need to look at the relationship stages of both the overall account and the individuals. May not be at the same stage.
Leverage changes
New role within the same organization or moving to different department or division – difficult to leverage relationship in context of this type of change.
Copyright 2015, Knowledgence Associates
WHEN YOU KNOW THE “ WHAT” , YOU CAN PLAN THE “HOW”
Tactics to Execute
Copyright 2015, Knowledgence Associates
Review/Consider Key Messages
Make sure they are stage appropriate!
Copyright 2015, Knowledgence Associates
RELATIONSHIPS TAKE WORK.BUILDING TAKES TIME.
STRONG RELATIONSHIPS = PROFITS
Getting Started
Copyright 2015, Knowledgence Associates
Knowledgence Offer
360 Degrees of the CustomerStrategies & Tactics for Marketing, Sales and Service
By Lisa Dennis, Charles Dennis and Lori Richardson
Marketing, Sales and Customer Service are three disciplines that all overlap at the same point: the customer. All customer touch points should be integrated with each other, a theory that makes perfect sense in the abstract, but is hard to do in the reality. Presents strategies & tactics to keep the customer promise.
Price: $20.00 plus shipping
Available Todayhttp://www.knowledgence.com/Ondemand.htm