Playing the Trump card

I've recently returned from the United States, where presidential candidate debates are in full swing and Donald Trump is a front-runner for the Republican nomination, consistently ahead of his nearest rival. 

And this is not surprising. 

Politics is theatre. While other candidates are talking about the same old “boring” stuff like healthcare and education, the audience is tuning into Trump as he sounds off about women, migrants, trade deals with China, Ebola, Obama and what he thinks about celebrities from Bette Midler to Rosie O’Donnell.

Time magazine recently chronicled a list of Trump-isms titled Here’s Roughly Every Controversial Thing Trump Has Ever Said Out Loud. Yet despite offending a great many people, Trump’s approval ratings continually go up. No candidate has yet been able to surpass him.

Why?

Trump sees business as a game, and his massive wealth simply as a way to keep score.

He is successful, opinionated, with a massive online platform that includes 2 million Twitter followers and the TV show The Apprentice, which is syndicated in 25 countries and spawned the famous line, “You’re Fired!”

While the other Republican candidates are measured, professional and polite – behaving they way they think voters want them to behave - Trump runs rings around them simply by speaking his mind. 

Political debates SHOULD be controversial. As voters, hearing things we don’t necessarily agree with forces us to re-examine our opinions and beliefs and to define new ones.

Likewise, in our business relationships we shouldn’t constantly kow-tow to customers. 

Customers may hold the purse strings, but they also appreciate us – as the experts they hired – standing up for what we believe in, even when they don’t agree.

Robyn Haydon is a business development consultant who helps helps service-based businesses that compete through bids and tenders to articulate the value in what they do, command a price premium, and build an offer that buyers can’t refuse. Don’t let others dictate how far and how fast your business can grow – take your power back! Email robyn@robynhaydon.com to request the white paper for the Beyond Ticking Boxes program.

Five business development behaviours that sabotage long-term success

Do you spend more energy getting new clients than servicing the ones you already have? Praise and heavily reward new business wins? Would you rather start a new job with a new customer than fix a problem with an existing one?

Our prevailing business development culture tends to measure and reward new business success over everything else. 

But this could be costing more than you think.

A study by Bain and Company (cited by Harvard Business School) found that the high cost of acquiring customers means that many customer relationships are initially unprofitable. However, this changes when the cost of serving loyal customers falls and the volume of their purchases rises. 

The same study found that increasing customer retention rates by just 5% can increase profits by 25% to 95%.

Add to this the Gartner Group’s assertion that 80% of a company’s future profits will come from just 20% of its existing customers, and it’s clear that investing in the business we already have makes logical commercial sense. And yet, in many cases, this investment just doesn’t happen. 

Here are five business development beliefs and behaviours that sabotage our long-term success.

1. Focusing too much on revenue. Most BD metrics focus heavily on the revenue line. New customers push that line up much faster than incremental growth in existing accounts ever could, and what gets measured gets rewarded.
2. Believing customer satisfaction will result in customer loyalty. Most organisations run annual customer satisfaction surveys. Unfortunately, satisfaction measures are not a good predictor of loyalty OR of future behavior. I hold customer interviews as part of my pre-work for the retention programs I facilitate for clients. On more than one occasion, a customer who at one point reported themselves “highly satisfied” has turned out to be angry, disengaged and/or preparing to walk.
3. Performing well, but becoming complacent. When we’re hitting all our KPIs, it’s easy to forget that good work is what we get paid for, and not a selling point.
4. Shying away from the hard work. Let’s face it, some large customers are demanding and hard to deal with, and the relationship can become strained and tense over time. It can be easier to get excited about a new customer than to dig in and turn around a difficult one.
5. Being seduced by bright, shiny objects. It’s fun and exciting to pursue new business, with all its promise and possibility. In contrast, re-competing for customers you already have feels like applying for your own job. It’s hard, and confronting, and there is much, much more at stake.

Customer retention pays enormous dividends when we get it right. While the probability of converting a prospect can be less than 25%, we should be odds-on favourite with an existing customer. 

But incumbency is only an advantage if you choose to use it. Request the white paper and learn more about Getting Ready to Recompete For Your Most Important Contracts and Customers.

Robyn Haydon is a business development consultant specialising in competitive bids and tenders. Are you part-way through a contract term with a big customer? Have an important piece of business coming up for renewal or re-tender in the next 12 months? Join Robyn’s one-day workshop “How to Retain Your Most Important Contracts and Customers” and develop a Ready to Re-compete plan for the business you can’t afford to lose - http://www.robynhaydon.com/workshops/

Robyn Haydon is a business development consultant who helps helps service-based businesses that compete through bids and tenders to articulate the value in what they do, command a price premium, and build an offer that buyers can’t refuse. Don’t let others dictate how far and how fast your business can grow – take your power back! Email robyn@robynhaydon.com to request the white paper for the Beyond Ticking Boxes program.

The gift that just stopped giving

In an environment where business is subject to competitive tender, giving and receiving gifts and hospitality is fraught with problems. It’s a fine line from appreciation to bribery, and it just got even finer. 

Last week The Age newspaper ran a story investigating gifts, benefits, and hospitality offered to buyers in Victoria’s Government-owned water corporations.

According to the Auditor General, there had been a 40% increase in gifts and hospitality to water corporations in a single year. Staff at City West Water received more than $90,000 over a two-year period, and at Southeast Water it was almost $70,000 over five years.

While the water corporations apparently refused to release their gifts registers at the time of the Auditor General's report, and details only emerged following a freedom of information request by the newspaper, it was not good news for suppliers. 

The Age article mentioned at least a dozen suppliers by name alongside the gifts they had given to their customers, including $5,542 for a conference in Florida, $3,700 for conference tickets in San Francisco, $500 in shopping vouchers and gifts cards and large amounts spent on Australian Open tennis tickets, AFL Grand Final tickets, and many other types of hospitality.

Due to concerns about the appearance of impropriety, independent auditor RSM Bird Cameron was asked to investigate. In this case, they found no correlation between the gifts, benefits, and hospitality offered and the results of tenders.

However, Victoria's water minister has now asked all of Victoria’s 19 water corporations to review and update their policies so that any gift or hospitality worth $100 or more is declared and approval sought before it is accepted. Introducing a new culture around gifts and hospitality is going to be one of the first tasks of the new boards at all water corporations from October.

If gifts and entertaining have always taken the lion’s share of your marketing budget, it’s time to re-think your strategy. While modest gifts and hospitality, will always have a role to play in showing appreciation to customers, what they really value is what’s inside your head.

Business development is still all about relationships, the way those relationships are transacted have fundamentally changed. We’ve moved from a time when people and personal relationships had a lot of power, to one where it’s ideas and innovation that are driving the customer relationship.

Invest in continually bringing your customers insights into how they can compete better, do business better, or move closer to their goals. That is truly the best gift you can give them.

Robyn Haydon is a business development consultant who helps helps service-based businesses that compete through bids and tenders to articulate the value in what they do, command a price premium, and build an offer that buyers can’t refuse. Don’t let others dictate how far and how fast your business can grow – take your power back! Email robyn@robynhaydon.com to request the white paper for the Beyond Ticking Boxes program.

The momentum of continual improvement

The most successful suppliers fall quickly into a pattern of continual improvement as soon as they win a contract or customer. Unfortunately, others – who are really just doing no more than keeping up with the basic requirements – are probably setting themselves up to lose.

Newton’s first law of motion – the law of inertia – tells us that “An object at rest stays at rest and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.”

When it comes to important contracts and customers, the procurement process is the “unbalanced force” – something outside ourselves that propels suppliers into a kind of recurrent stop-start motion.

Bid, deliver, and then bid again.

But that doesn’t make this a pattern for suppliers to aspire to.

For incumbent suppliers, what happens in the delivery phase – which is usually the longest and most significant in the relationship – is what sets the stage for winning again.

What customers usually see from a supplier is this.

There’s the initial flurry of excitement when competing for the business, followed (usually) by a short lull while the customer makes up their mind. When we win, it’s a steep climb to get everything set up right, and then we settle back into a comfortable level of delivery until we need to compete again.

But what they EXPECT from us is this:

Choosing the path of continual improvement is what really helps to sustain a customer relationship over the long term.

That’s because not everything is within our control.  We can’t control how customers choose to buy, and we can’t control what competitors do either.

But we CAN choose our own state of mind.

We do get to decide how much of our energy, enthusiasm and ideas – in short, how much of ourselves - we’re prepared to commit to making sure our work gets better and better. 

Robyn Haydon is a business development consultant who helps helps service-based businesses that compete through bids and tenders to articulate the value in what they do, command a price premium, and build an offer that buyers can’t refuse. Don’t let others dictate how far and how fast your business can grow – take your power back! Email robyn@robynhaydon.com to request the white paper for the Beyond Ticking Boxes program.

Take your power back!

For those of us old enough to remember, the golden age of selling in business-to-business markets was at least 20 or 30 years ago.  Back then, business was done on a handshake, relationships were king and suppliers had a lot of power. If you were running a business or doing any selling back then, you probably felt like you were in control.

Fast forward to today, and business of any size and scale is done through bids and tenders, procurement is king, and suppliers don’t seem to know what to do any more.

The world of sales has fundamentally changed. But some of us are still selling like it’s 1985, Wham is at the top of the charts and we are jamming out “Wake Me Up Before You Go-Go” on the Sony Walkman wearing our Choose Life t-shirts and fluoro cut-off gloves.

OK, maybe that was just me, but you get the picture. It’s chaos, it’s not pretty (truly) and it’s not working. Something has to change.

What’s really going on here is that we feel like we have lost our power.

It’s fair to say that not everything we’d like to control is within our control. We can’t control how customers buy. We can’t control what competitors do and say. And we can’t control how we feel about any of these things. But we can control how we exercise our CHOICE. And we can choose to think more broadly, to feel differently and to act despite our fears and challenges.

I reckon it’s an exciting time to be in business. Our world is full of possibility and potential. But this is underpinned by rapid and unrelenting change that brings many challenges.

Customers have these challenges too. So we’ve moved from a time where people and personal relationships had a lot of power, to one where ideas and innovation are the primary currency that drives customer relationships.

According to a recent study by TEC (The Executive Connection), a global network of company CEOs, the five issues keeping CEOs up at night are talent management and the need for cultural fit; the role of technology in re-shaping existing business models and creating new opportunities; the globalisation of markets; embedding an innovation mindset; and the perennial need to make good decisions. (Read the full report here) 

Do you have a solution for one of these? Prospects and customers want to hear about it.  

It’s time to take your power back, show them what they don’t know (but should) and build your customer’s future. This is what creates real and lasting customer partnerships.

Robyn Haydon is a business development consultant specialising in business won through formal bids, tenders and proposals. She is the author of two books on proposals and sales, including Winning Again: a retention game plan for your most important contracts and customers. Read more about it here.

The DNA of a successful bid team

A bid team is a living organism – a group of smart people who come together to apply their skills and knowledge to developing a functional solution that will win or retain an important contract or customer.

The most successful teams share a particular type of DNA. In very simple terms, DNA is a blueprint for how to build a living organism: it gives instructions to our cells about how they should grow and function.

Likewise, bid teams need the right mix of customer and technical experts, balanced by a Bid Leader with the authority to make commercial decisions, and the skills to draw out the best ideas and drive the organisational change necessary to win.

What often happens, though, is that it’s left up to the customer experts – the sales team – to run bids on their own. Customers have expectations and the sales team knows all about them: they will happily tell you what they are. Without the leadership and authority to implement these expectations, or the technical know-how to configure the systems and processes of the organisation to suit the customer, this knowledge remains under-used.

Building your team with the right mix of people creates a meeting of minds that will help you win. As you can start to see from this diagram, it’s at the intersection of these specialities that the magic truly happens. Customer experts provide information about customer expectations, which the commercial experts use to provide leadership to the technical people, who can configure a solution for the customer.

Figure 1: The DNA of a successful bid team contains the right mix of specialists with commercial, technical and customer expertise

Avoid letting senior leaders outside your team hijack the bid strategy, particularly if they don’t know the customer well or haven’t worked at the coalface for a long time. Often these people dominate the discussion with commercial concerns and big-picture competitive strategy, at the expense of valuable customer and technical insights, and can make disastrous decisions that undermine the good work of the people who really know what is going on. 

Robyn Haydon is a business development consultant specialising in business won through formal bids, tenders and proposals. She is the author of two books on proposals and sales, including Winning Again: a retention game plan for your most important contracts and customers. Read more about it here.

Do the right job – then do the job right

Last week I explained how bidding less can actually help you to win more. While being more selective helps position you to be more successful, it’s not enough by itself. It is also important that the people who are writing your proposals are true subject matter experts – people who really have the knowledge and experience to really understand what the customer is asking for.

When professional services firms want to grow and win more work, they’ll usually assign a team of proposal writers to produce bids. These teams are often made up of administrative staff and junior consultants who don't yet have a great deal of field experience and might otherwise be underemployed.

While this approach might save money, or be more efficient, it certainly isn’t effective. Proposals lack depth of knowledge, and are a signal to clients that your firm really just sees bids and tenders as paperwork, and not as an opportunity to be of service to them.

To win, you need to convince the customer you’ll do the RIGHT JOB; not just do the job right. That’s why the subject matter experts in your firm will always be your best proposal writers. However, they do need support to do this. Their comfort zone is writing reports, not proposals. They have day jobs to do as well, under significant time pressures.

And let's not forget that your experts are rarely in it for the money. To be more successful, inspire them with the intrinsic rewards they'll achieve by winning work they really want to win – don't just make proposals an extra task they have to do. 

Robyn Haydon is a business development consultant specialising in business won through formal bids, tenders and proposals. She is the author of two books on proposals and sales, including Winning Again: a retention game plan for your most important contracts and customers. Read more about it here.

Five signals that your customer relationship is running out of road

Customer relationships aren’t just about people anymore. We are moving away from an environment where personal relationships had a lot of power, to one where ideas and innovation are the primary currency that drives customer relationships.

 When I speak to senior people who are in charge of important customer relationships, there are two things they always tell me. The first is that they’re doing a good job. The second is that they have a “good relationship” with the customer.

Last week, I wrote about the risk of being a one-hit wonder; a supplier that isn’t invited back for a second contract term. Sure, you might think, that could happen – but never to me.

 So let’s dig a little bit deeper. How can we define a “good” customer relationship? What does it really look like? How do you know if you have one, or not?

 A good customer relationship is one where both parties are receiving equal benefit, and have equal interest in continuing. Here are five signals that your customer relationship may not be as good as you think it is, and is in fact at risk of running out of road:

 1.     You set regular performance review meetings with the customer, but they keep pushing them out or cancelling.

2.     Your service delivery plan looks exactly the same as the day the contract started.

3.     You're hitting all your targets or key performance indicators (KPIs) easily.

4.     You hear that competitors are in there pitching new ideas.

5.     There are changes coming up in the customer's business that you don’t know about, haven't thought about, or haven't developed a strategy to help them with.

These risks are easily avoided if you have a plan. You can call this anything you like; a retention plan, a growth plan, or a client service plan. I call it a “Ready to Re-compete” Plan.

What's important is that you actually HAVE a plan for change, and that you're not just delivering on the baseline of what the contract and the customer originally asked you to do. 

Robyn Haydon is a business development consultant specialising in business won through formal bids, tenders and proposals. She is the author of two books on proposals and sales, including Winning Again: a retention game plan for your most important contracts and customers. Read more about it here.

Don't be a one hit wonder!

It’s easy to lose sight of the REAL advantage of being an incumbent – the opportunity to delight a captive audience who has already chosen to buy from you.

Music industry charts are full of one-hit wonders; remember Soft Cell (Tainted Love), Dexys Midnight Runners (Come On Eileen), Nena (99 Luftballoons) and The Knack (My Sharona)? All of these artists produced plenty of other music, it’s just that none of it made the big time quite like these monster hits managed to do. There are many others too, who worked very, very hard for years and years to get their big break, rode on the crest of their one hit single for quite a while, but just couldn’t crack the top of the charts a second time.

Likewise, business-to-business markets are littered with incumbents who didn’t make it past the first contract term.

When you already have the business, it’s easy to get comfortable, and lose sight of the most important thing that's going to help you keep it.

One your biggest advantages as an incumbent supplier is ACCESS – you can get in front of the customer more easily, and go deeper inside the organisation with new ideas in a way that competitors would find very difficult to replicate.

As the incumbent, you worked hard to get to where you are. Let’s make sure you stay there.

Robyn Haydon is a business development consultant specialising in business won through formal bids, tenders and proposals. She is the author of two books on proposals and sales, including Winning Again: a retention game plan for your most important contracts and customers. Read more about it here.

Is your new idea meaningful for your customer?

Customers aren’t always rational in the way they buy things. Before we get too excited about our new, innovative offering, it is important to think first about the customer’s goals, pressing problems and their appetite for change.

Meaningful innovation resonates with your customer’s goals and solves one or more of their big, gnarly problems – particularly problems that no one else has been able to solve yet. New ideas that focus on opportunity creation can also be useful, but are harder to sell, unless you have a growth-minded customer and the potential of a big payoff or return.

The father of psychoanalysis, Sigmund Freud, suggests: “We will do more to avoid pain than to gain pleasure.” Most people are therefore much more motivated to resolve an issue that is keeping them up at night than they are to take a risk on a bright shiny opportunity that may or may not be better than their current reality.

For example, my family gave up its old ‘fatback’ analogue television only a month before the digital television switchover. We even took this 60kg TV with us to our new (two storey) place, where it was installed upstairs. Not long after, we found out that the analogue signal in our area was about to be switched off forever, rendering the TV useless. So we had to hire the removalists back to lug it down the stairs and take it away again!

As it turned out, my family wasn’t really that interested in buying a new TV to watch all the extra channels offered by digital TV (the bright shiny opportunity). We didn’t change over our old TV set until we were faced with the prospect of a black screen (big gnarly problem).

Before you rush out to talk to a customer about your bright, shiny offering, remember that while customers do expect innovation from their incumbent suppliers, no one wants change simply for the sake of change. 

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Robyn Haydon is a business development consultant specialising in business won through formal bids, tenders and proposals. She is the author of two books on proposals and sales, including Winning Again: a retention game plan for your most important contracts and customers.

How to Build Business-Winning Innovation in Your Services Business

Most service businesses sell to business customers — either exclusively, or in addition to consumers.

When you sell to other businesses or to government, and when you reach a certain level, you will be selling to procurement.

For example, Victorian government departments need three quotes for any purchase above $25,000. Above $150,000, they are required to conduct a formal tender.

Most businesses that sell at this level end up winning at least two-thirds of their business through some kind of formal submission. When you win a contract that way, you only get to keep it by competing for it again, generally, once every three years.

That’s a lot of revenue at risk through the procurement cycle.

When I talk to people who sell services, they often tell me that they are so busy working in the business that there never seems to be time to work on it. The marketplace is getting more competitive all the time, and the pace of change is so intense that it can be hard to keep up with what competitors are doing – let alone come up with new things yourself.

To make things even more challenging, there is the frustration that customers don’t really understand what you do, let alone value what you do.

There is a better way to sell services. If you’re struggling with these problems, I can help.

The Revenue Revolution: Building Business - Winning Innovation in Services Organisations is a program for owners and leaders of service businesses. Together, we will look at what your organisation knows, does, and delivers, to identify what you offer that is:

1. Extremely valuable to customers, and has the highest currency right now;
2. May be outdated, and of limited value to customers; and
3. Can be built in order to create greater value to customers over the next 6 to 12 months.

At the end of the program, you will have a blueprint to develop services that will position you as the clear winner with customers or funding bodies.

Contact me for a white paper with more information about how the Revenue Revolution Program can help you grow your services organisation.

Are You Playing a Finite Game with Your Most Important Contracts and Customers?

Retaining business is a game of strength and stamina, but it often doesn’t feel that way. The milestones imposed by the procurement cycle put invisible limitations on the way that we approach the job of selling, particularly to existing customers. In his new book Game Changers, Dr Jason Fox —an expert in motivation and game design for meaningful work— says there are two types of games we can play; finite games or infinite games.

Finite games are played for the purposes of winning, while infinite games have no fixed outcome — only the sense of progress.

I reckon this is a neat way of describing how we view the game of pursuing and retaining business.

Most new business pursuits are treated like finite games. We win, or we lose, and we move on. Wins are inherently motivating, while losses have the opposite effect. There is actually a third outcome that some find even more demotivating than a loss; no outcome, despite a lot of effort. I can remember two such situations. Years ago, I worked with a large professional services firm on a bid for a multinational client. At what was supposed to be a celebration dinner for the bid’s lodgement, the lead partner told us that the bid had been pulled due to competitive concerns from an international office. Two dozen faces around the table dropped like stones. On another occasion, I was working on bid with a team from the UK when my father-in-law died. Due to the deadlines, I was the only person in the family who couldn’t take time off to support my partner or help with funeral preparations. Months later, we heard that funding for the program we were bidding for had been cancelled due to a policy change. In both cases, thousands of hours of work went down the drain.

Thinking of new business pursuits as a finite game is okay up to the point where the contract is won, but what happens next? Nurturing and building relationships with an existing client is an infinite game – a game of patience, possibility and progress. But because the procurement process introduces artificial milestones — because we know we have to re-bid for the contract every three years — this makes it feel like a finite game. As a result, we spend too much time using the existence of the Request for Tender as an excuse to procrastinate, instead of making progress. This is a losing game for us and for the customer.

If the contract signing is the whistle signalling the first bounce at a football game, the first RFT is just the first quarter siren. Even when competition is tough, and change is endemic, there’s no reason your relationship with the customer can’t extend for all four quarters — more than a decade — and for years and years after that. The game of serving a customer needs to start the day the new contract is won, and it is a game that doesn’t need to end unless you want it to.

Your Contract Delivery Team Is Your Primary Selling Team

The rise of procurement has fundamentally changed the way sales relationships are transacted. Your contract delivery team becomes your primary selling team as soon as a contract is signed. Clients are mentally marking your team on every interaction. And with so much contract communication done in writing, the risk of damaging a client relationship through poor communication is greater than ever before.

Contract delivery teams have a huge influence over how the customer sees not just your day-to-day performance, but how well you are managing customer communication, best practices and innovation over the life of the contract. Because they work at the coalface every day, team members are also in an ideal position to identify how to make more money and to reduce profit leaks.

Contract delivery teams usually contain a mix of technical and operational people, each of whom is very clever and knowledgeable in their own area of expertise. However, many of them don’t really think they can sell, or don’t see it as their job to sell.

Through working on bids and tenders with dozens of contract delivery teams in many different industries, I have seen first-hand how the lights go on when these smart people realise what an enormous contribution they can make to a winning bid. I am really passionate about seeing that effect last when they get back to their day job, and giving them the tools, the techniques and the confidence they need to not only deliver the contract with excellence, but to step up into their selling role.

How much more business could you retain, how would your reputation improve, and how much influence would you have with customers if your contract delivery teams communicated with more authority?

My Client Leadership Program gives operational, technical and front line delivery staff the confidence, clarity and communication skills to act as an effective selling team. Contact me if you would like a white paper with more information about this program.