Over the past year, I’ve watched the season of economic uncertainty cause clients and business managers to have a number of “Crucial Conversations” with their staff and key customers. Periodically over the next several months, I’ll address some of the more frequent conversations that I’ve observed and offer my insight (and hopefully hear yours)…
Today’s crucial conversation is around this topic: “The customer demands more and commits to less, for less dollars”.
1. So how do we as the business-owner/manager not fixate on price?
Price is a part of the sales process, but not the only key deliverable of the transaction. (The other key deliverables being value of the product, and timeliness.) I think as leaders we tend to fixate primarily on price when we are nervous about a potential client going somewhere else. I believe the answer is to share with the client where we provide product value and timeliness in addition to price. Remember, we can only specialize in a maximum of two of these areas at any given time.
2. What are the key critical questions to ask a strategic client if you are sensing they are shopping around for a new supplier?
First, I would want to talk to a key decision-maker and find out: a.) how they are doing in this economic season, b.) what can we do to help them be more successful, and c.) what type of new client are they currently looking for (and see if I can provide some fresh leads).
Hopefully you are doing this on a regular basis and not just when you are hearing rumors that you may be let go as a preferred vendor. Strategic relationships go both ways. When I can convey to my clients that I am genuinely concerned in their business success and our business-to-business-relationship more than I am in my next sale to them, I will continue solidifying our relationship.
3. The fear of losing a key client during a season of economic uncertainty.
First, we should always be looking at ways to keep diversifying our business to be as recession-proof as possible. Secondly, honesty is still the best policy. If I am being hit with price increases from my suppliers and I need to raise my prices, totally transparency is still the best form of communication. People understand the need to make a profit in order to stay in business. At the same time, they are challenged with doing the same thing for their organizations. So be forward, upfront, and totally honest in a timely fashion and few clients will falter and leave you.
