Products are tangible. You can see them, feel them and usually sample or test drive them before you buy. Services, on the other hand, are not. Typically it’s only after a service has been performed for you that you know if you like it, can see how it works, and you’re able to decide if it will solve your problem or produce the results you’re looking for.
When it comes to the provision of financial advice, there is a major shift taking place away from product-based transactional services and towards client-centric strategic advice. As with any change, there are early adopters, who have grasped this evolution, and moved ‘ahead of the pack’ however evidence suggests that there are still many who are struggling with this, and its implications for their existing business models. This mindset shift is however, one that the retail client is also yet to fully accept… Many examples exist of clients who struggle to accept the concept of a ‘fee for advice’ in the absence of a transaction (this will be the topic of a future article)
There is an old saying in marketing, ‘People do business with people they know, like and trust.’ This is particularly relevant for services, and thus with this in mind, below are some simple business development strategies for professional service providers:
- Be Inspiring:
How you come across and relate to a prospective client or centre of influence will often be the difference between an enquiry and a business relationship. When you’re genuine, positive and passionate, and display enthusiasm and confidence in your value proposition, prospective clients will find you inspiring and an engaging person to do business with.
- Have a professional online presence:
Having an online presence not only gives you credibility as a business, but it reduces your need to personally address frequently asked questions, over and over again. Although people often still rely on recommendations from people they know and trust (family/friends/colleagues) when choosing a service provider, a ‘Google’ or other online search is the most popular way people do their own research to help them choose among service providers. Ensure your online presence is modern, easy to navigate and clearly articulates your value proposition and ideal clientele.
- Encourage referrals and word-of-mouth business:
It’s often said that the best client is one that is referred from another ideal client. While the author’s recent work involving a number of client surveys by professional services businesses indicates that many clients are prepared to refer, (particularly to a business that they trust and that provides a good service experience), asking for a referral is still something that many service professionals do not do often. Regularly ask for referrals from your existing clients and actively refer your clients to others whenever possible. This will help grow your network and encourage the people you’ve referred business to, to look out for business to refer to you.
- Form strategic alliances:
Create relationships with other business owners with a similar target market and ask them to refer their clients to your business when they notice an opportunity and offer to do the same for them.
- Become an expert in a particular niche:
When you’re viewed as an expert in something, often you will find that even people within your own profession/field will refer business to you when their clients need assistance that’s outside their area of expertise. Another benefit is that the media will often seek out your comments for news items.
- Speak at conferences or events:
Sharing your expertise with others through speaking is another way to be more visible and to demonstrate your credibility to potential clients. People are more likely to remember who you are once they’ve seen you speak at an event.
- Network with your target market or potential business referrers:
Choose networking events where you’ll either have an opportunity to meet your target clients or potential strategic alliance partners or referral sources and actively connect people whenever you see an opportunity to do so.
- Get published / Use Media:
Write articles and where possible publish them through multiple mediums. A newsletter, blog or even a regular column in a local newspaper will increase your credibility and encourage clients to want to do business with you. Prospective clients or centres of influence may peruse your blog to get a feel for your experience and knowledge.
- Follow up effectively:
After meeting a potential client or centre of influence, ensure that you follow up by arranging a subsequent meeting, phone call or coffee. Stay in contact by inviting them to join your newsletter mailing list or ask them to be your guest at an upcoming event. Whichever approach you employ, build a sales and marketing plan that you action easily and on a regular basis. Remember, it’s often said that the best time to be marketing is when you don’t need the business… If you’re always adding to the pipeline you will rarely find yourself short of opportunities.
While it’s not rocket science, and as outlined above there are many simple strategies one can employ to assist with the business development function, it is all too often the case that practitioners get caught up in their day to day work, in particular when things are busy, and don’t think about business development until things quieten down. Remember, business development requires lead time, and new clients take time to convert, so to reiterate, the best time to be marketing is when you don’t need the business. Keep it simple, and regular.
Blog by Simon Backman 