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The Relationship Development Process

It was great to see so many of you this past week at the Society for Marketing Professional Services national conference in Boston! Below is a summary of the four steps of the Relationship Development Process that were the backbone of my presentation “Marketing’s Role in the Relationship Development Process.”

Success in business starts with successful relationships. Because of this, the relationship development process is often the guide that is used to govern the marketing and business development roles in companies. As you look at these stages of the relationship development process note that marketing plays the pivotal role of effectively laying the foundation for relationships, while business development facilitates the initiation of those relationships.

The Relationship Development Process

Name Recognition – During the name recognition phase of the relationship development process a company or an individual goes from being an unknown, to being known. This foundation sets the groundwork for a relationship as others are at least aware that you or your company exists. Name recognition is one of the primary objectives of a strong marketing department and it often takes the form of advertising, promotions, mailers, and press. It is also handled in business development and sales when a new relationship starts. A common introduction when you meet someone new for the first time often builds name recognition: for example: “I’m John Adams with ABC company.” Note: I have found that if your company is an unknown, prior to initiating a new relationship, your chances of turning the relationship into a sale are reduced significantly.

Develop Understanding – During this part of the relationship development process, a company or individual goes from just being a name, to being recognized for how they fit into the world. This stage establishes a thorough understanding of your company, the services you provide, and how others see you in the industry. Most importantly, it is during this stage that others will learn how your company can be of benefit to another individual or company. This stage should be handled by marketing at the company level and business development at the relationship level. In marketing, this often takes the form of websites, brochures, newsletters, and articles. In business development, it often happens during conversation and should include how the individual fits into the corporate structure.

Interactive Communication – During this part of the relationship development process you must begin to engage at the human level. This is no longer about facts or information, it is about building a personal relationship. Because of this, business development should take the lead at this stage with minimal marketing support.

Solidify Relationship – Relationships are solidified when you engage in mutually beneficial action. When you call someone that you have solidified a relationship with, communication is easy and most of the time you will be able to quickly find direct and indirect topics of conversation. This stage should be headed by your business development staff in conjunction with your project management staff. Often, this is the point at which new work or projects are begun with your new client.

How are you doing?

Looking at this process, you can see the importance of both business development and marketing in the sales process. Take a moment to identify the areas that you need to strengthen in order to improve the effectiveness of your sales process. Is your marketing department truly laying a foundation with name recognition and developing understanding, or are they just producing glossy brochures? Is your business development staff regularly initiating interactive communication with important potential relationships, or have you yet to identify who is responsible for business development at your company? As you think about these questions, I hope you can see the steps you need to make to improve your sales process.

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Networking Secrets a Father Taught His Son

The following is a guest post is contributed by Maria Rainier, who regularly writes on the topic of online college education.

My brother is a wildly successful person. He literally has thousands of business cards in this gigantic blue 3 ring binder he keeps with him at all times. Ask my brother do you know a good handyman, he says “I know several”; ask him if he knows a good Cardiologist he replies “of course, I know the best in the city”. Ask him if knows anybody to do anything, he always says yes. It seems his binder is almost like a magician’s magic hat. You ask it to produce something and presto, it appears. A few weeks ago when we got together for Mothers Day at moms I decided to inquire. I asked him, how did you have time to meet and talk to all these people? How do you know them? He said. “I met 99% of them through networking”. I have to admit I was shocked.

Not to worry. I learned networkers are made, not born.

Growing up, my brother kept to himself. In high school he was not what I would call outgoing. He was not very talkative for a boy and he was not by any means a natural born salesman. So I asked him, “How did you get so good at networking?” He didn’t hesitate and replied “Practice”. I was puzzled. I always thought you can either network or you can’t. You are either a networker or you’re not. So I asked him, “what do you mean, you where never really a people person, you have always kept to yourself, why this new networking you?” He said “dad taught me how to network, go ask him” and then he laughed. So I pressed on and asked my brother “what do you mean dad taught you?” He said dad taught him the 3 cardinal rules of networking when he was in college taking a business course. Now I thought this is getting ridiculous, the 3 cardinal rules and a business course, he has to be pulling my leg. Maybe this goes deeper and I better not dig further. But of course, I had to. My dad never taught me to network. I needed answers.

I asked my brother if he would mind sharing with me how a quiet shy kid can turn into a networking expert. He quickly snapped, “I am no expert, but I can hold my own” “I told you sis, practice” I said “I know all that, but tell me exactly how you do it”. He said it would take him an hour and a half to teach me the 3 cardinal rules of networking dad taught to him and I should call him one night this week. I reluctantly agreed.

Get it from the source.

The next evening I called him and I said “OK so what are the 3 cardinal rules to networking?” he replied, “Do you have a pen?” I said, “Yes” and like it had been rehearsed and practiced dozens of times, he recited these cardinal rules to me: “Practice, Practice, Practice”. I said “c’mon now, I really want to know”. He said “OK”. He went on to tell me for over an hour that knowing people from all walks of life was essential to being successful. He told me that you did not have to make friends or even have anything in common, just that you were to create real business relationships. He said “this is the first cardinal rule, build solid relationships”. He further explained that he was taught by our dad to let the other person talk about their business and magically, in some metaphysical way, they would remember you and what you do through your silence. This was rule two. He then went on to tell me that common sense, when a networking opportunity presents itself, was the 3rd and final rule. He explained that carefully presenting your services when appropriate and only when appropriate, was key crucial to networking.  He told me that sometimes it took him two or three meetings to form a working relationship or even say a word about what he did. He was careful to point out not to pressure or rush a contact into a relationship, and better to stay low key and not seem desperate. He said that part of the common sense in cardinal rule three was to act like you don’t need the contact, but that you want it. He said this was a fine line and it took practice. He finished by telling me that no one wants to buy from, or do business with a desperate person. People want to buy from and do business with a successful person, so act like a successful person and you will never have a problem networking.

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My First Triathlon

I knew very little about triathlons this past November when I added the words “complete a triathlon” to my list of goals for the 2010. I knew that triathlons are considered an “individual” sport and that they push your personal limits as you compete in three sports back to back. What I didn’t know was that to reach my goal of completing a tri I would need a great group of friends.

I never have enjoyed running since a knee injury in junior high, so the idea of training for the run portion of the tri seemed next to impossible. It had been over a decade since I had even run a mile when this past December when I received a call from someone I barely knew inviting me to join him and another friend running on Tuesday and Friday mornings. (My loving wife tipped him off that I needed to get running in order to reach my goal) The next day I ran a painful 2.6 miles. Since that day in December we have been running together twice a week and surprisingly, while it has been hard, I have enjoyed it more than I ever thought possible.

A triathlon will always teach you something

I have been told by many triathletes that a Triathlon will always teach you something. It taught me about the unique paradox of life: that in order to succeed as an individual you must first succeed as a friend. In life you need true friends, the type that will call and give you a hard time if you didn’t run just because it was raining and cold.

Business is no different, if you are simply inward focused you may do fine for awhile. You might even make it for a couple of years as you push (or pull) yourself up with your own strength, but eventually you will burn out and find a loneliness where relationships should have been all along, helping you along the path of life.

If I am convinced of anything it is this: that we were designed for relationships. It is not simply a want, it is a need. How are you doing, are you focused on helping others succeed and in doing so allowing them to help you as well, or are you taking on life all by yourself?

To those that dragged me along

I simply can’t say thanks enough to my running friends Matthew Hatley and Jason Vandorsten, to my biking friends Ron Klabunde, Ken White, Brian James, and Marty Smith, and to my loving wife Mary who encouraged me every step of the way. It is because of all of you that I was able to reach my goal for the year. Thank you all, it is truly great to have you as friends.

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Construction Marketing Ideas

Construction Marketing IdeasThis past week I received a copy of Mark Buckshon’s new book Construction Marketing Ideas and I must say that I am impressed. It provides a comprehensive overview of not simply the basics of marketing, but truly how to leverage marketing to bring work in the door. Since I am a sucker for stories I have especially enjoyed the stories from others in the industry that have faced so many of the same problems that we all face and have found unique ways to solve those problems.

I definitely agree with Mark on the role of associations in building an effective marketing program:

Association marketing:  Your untapped gold mine

After attending a Society for Marketing Professional Services (SMSP) annual Build Business convention in Denver, Colorado, our family visited a small working gold mine. The miner, after years of low gold prices, had discovered a way to survive by selling site visits to tourists.  With gold prices soaring, the actual mining operation is now thriving.  Nevertheless, the tourist revenue continues to create an exceptionally profitable business. However, the miner doesn’t need to dress the place up as a tourist site; it is a working mine, after all.

Discovering untapped resources

From a marketing perspective, associations have similarities to the gold mine.  They can seem expensive, and while you can sometimes find nuggets on the surface, the best value is deep within your  participation.  However, unlike the mine, which (even if it can continue for decades) is a depleting resource, effective association participation results in increasing advantages until you hit the mother load of consistent, repeating opportunities.

It took me a long time to appreciate why associations are so valuable for marketing, and my research suggests that many people give up before they achieve success.  A senior SMPS member said the association struggles with people who join, then quit after a year or two.  “This turnover is disturbing, because the real value in membership comes with time and the networking and leads developed over the years,” he said.

A wealth of leads

When leveraged actively and consistently associations can provide a wealth of new project leads. More importantly for me has been that my involvement in great associations (such as the Society for Marketing Professional Services) have yielded true friendships. It is an amazing thing to enjoy going to work every day to achieve success with true friends.

Construction Marketing Ideas

If you haven’t already done so let me encourage you to pick up a copy of Construction Marketing Ideas by Mark Buckshon.

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I don’t like networking events

I don’t really like networking events. To be honest, I have been struggling with this over the past several months because no matter what I do it seems that networking has become, and is becoming, a bigger part of my life. I write about networking, speak about networking, coach others on networking, I founded a massively successful commercial network, I have even been a conference keynote speaker presenting on the topic of networking! So how is it then do I not like networking events?

I’m normal. That’s right; most people do not like attending networking events. According to Susan RoAne (Author of Face to Face) 93% of people self identify themselves as “shy,” and networking events are not a happy place for a shy person to be. I have finally come to the conclusion that the reason I have been successful speaking, writing, and building networks is that so many people struggle with the same things I struggled with. I had to work hard to figure out how to succeed at networking by building great friendships (something that anyone can do even without attending networking events). As a result it is really easy for me to explain to other people how to succeed at networking, because I have struggled with the same things.

You are an expert

One amazing thing about life is that our successes are the greatest in areas where we struggle the most. I have read a lot about networking and have come to realize that many of the “experts” are wrong. When I hear someone using “elevator pitch” and “networking” in the same sentence I run (if you are in sales you don’t need to run, these are great sales tools, they are just NOT networking tools). If networking hadn’t been so hard for me, I never would have understood why these things don’t make sense.

Your Turn

What are the areas of your life that you struggled with for years? Did you have to learn management, leadership, or graphics through the school of hard knocks? If so you are probably more of an expert than you ever imagined. If you are open to sharing, there millions of people that need to hear and learn from you, not from someone that was a “natural.” You many never be able to (or desire to) connect with millions, but can you start this week by sharing some of what you have learned with at least one person.

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Networking: Make certain you are heard

tree_fallingWhen I first started networking I clearly remember referring ten potential clients to a friend in my network. Several weeks later I received a phone call from him thanking me for one of the referrals, it hadn’t turned into a job, but he really appreciated that I was thinking of him. As we spoke I asked him about how things were going with the other nine referrals… he had no idea what I was talking about. As we spoke it turned out that two had become clients, a couple he was still waiting to hear back from, and a handful he had never heard from. I had learned my lesson: the people you are networking with need to know when you help them, and it is your responsibility to communicate it.

Do you make a sound?
We’ve all heard the saying “If a tree falls in a forest and no one is around to hear it, does it make a sound?” We can ask the same question as it relates to networking.

The foundation for networking is helping other people, but if others don’t know that you are helping them, you are failing to be heard.

Make Some Noise
Two easy options to be heard include:

  1. Send your contact an e-mail with a note about the referral. It is easy to start with a statement like “I just wanted to let you know that you may receive a phone call from…”
  2. Call the person you referred, everyone likes receiving a call about a potential lead.

Remember that your objective is to build mutually beneficial relationships. If you were curious, here is the answer to if a tree falling in the forest makes a sound.

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