If you've worked in business development for more than a month, you'll know that CRM stands for 'Client Relationship Management.' CRM is a catch-all kind of term that covers the strategies, practices, tasks, software and related activities in the customer/client-buying experience.
I think it's making us lazy.
Relationships ARE Important
Client relationships are important. Without the relationship that exists between the client and their chosen service provider, there can be no exchange of services for money. No money means no profits. No profits means no business.
However, what if I told you that your focus on the client relationship itself has been the reason you fail to keep so many of your clients?
We've all seen it time and time again. A client relationship begins to develop and go from the prospective client stage to the existing client stage. Throughout the development of this relationship, there have been lunches, a few dinners and numerous rounds of golf. All of this has been intended to strengthen the relationship between the client and the business provider.
But does it?
We Used to Beat Our Competitors... A Lot!
I had many competitors who spent gobs of money on lavish dinners, gifts and even trips out of town to win business. Often, some would skirt the laws and regulations connected to such business development practices and decide the risk was worth the potential reward. Yet, most of those clients still chose my little rinky-dink company over their lavish dinners and expensive inducements.
What were we doing that was so different from them? I mean, it was crazy. We had client after client tell us about how they would go to dinner or lunch with a competitor and while it was nice to be showered with attention, there was really only one place they would send business: us.
A lot of companies will hire a business development manager to go out and get new business for the company and continually beat past sales figures with more and more growth. That's what the business development manager does in conjunction with his or her marketing department and a few other professionals who will help win the client. Eventually, after the client is won, they will fall out of love with the company and its professionals and fire the company to go look for a new service provider. This cycle can take anywhere from a year to three or even five years to complete.
Why is that?
Honestly, have you ever questioned why you can see a million dollars in new business walking through the door in any given year while there is a simultaneous exit of a half a million or more during the same time period?
What if I told you that focusing on the relationship has led you to miss the mark over and over and over again?
What if the relationship between you and your client is NOT the highest priority?
What if its something else?
In my next post, I'll tell you what it is. It's late and I'm tired. When you realize what the true secret to strong client relationships are, you will likely smack your head for not realizing it beforehand.