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Feature Articles Clueless, Late, and Inattentive: How Buyers Describe Consultants as Sellers
By Mike Schultz Ann, the Prospective Client: Along with the goals for the company that we already talked about, what I really want to do is position the business for sale starting now and then get ready to retire…what I'm thinking is…and then we should…hello…Jim…are you with me? Jim, the Professional Services Provider: Ummm…oh, yeah. Long-term growth for the company. Right, Ann. Well what you really need is to protect your personal assets while we pursue angel funding. I can help you with both of these. Ann: Long-term growth? Well, I'm not really sure that's the path we're headed down, but you're the expert. I'd at least like to see what you're thinking. When can you put together a written proposal for me? Jim? Jim: One sec…<Gets off his cell phone.> I hear ya barkin' there, Ann. I'll get in that proposal and get things moving. I can have that over-nighted to you <checks calendar…flips pages> in 43 days or so. I can't commit 100%, though. It's been busy… Somebody Else's Problem? I know what you're thinking. “This is an over-dramatization of the mistakes of a particularly bad consultant. Sure, it's always good for me to reread, but I'm past the stage of needing to hear this. I listen. I understand my clients' needs. I get back to them quickly. I act professionally at all times.” You may very well be a satisfaction machine, pleasing prospective clients with your charm, wisdom, skills, and promptness. But, odds are you're wrong—at least according to your typical prospects. In “How Clients Buy: The Benchmark Report on Professional Services Marketing and Selling from the Client Perspective”, we asked the following question to 200 business-to-business buyers of consulting and professional services: Think about the last few times you purchased consulting and professional services. Which, if any, of the following 15 problems did you encounter? We found the following statistics:
- Inattentive: 41% encountered service providers that did not listen to them (Hello…Jim…are you with me?).
- Clueless: 40% encountered service providers that did not understand their needs (Long-term growth…Well, I'm not really sure that's the path we're headed down).
- Late: 38% encountered service providers that did not respond to their requests in a timely manner (in 43 days or so).
The other 12 problems (e.g. consultant lacked professionalism <gets off cell phone>, consultant did not craft a solution to my needs <pursue angel funding>, etc.) occur regularly, too. Or, you could say, too regularly. In fact, only 15% of buyers reported that they experience no such problems in the process of purchasing services. What it comes down to: 85% of business-to-business buyers report they recently experienced one or more major problem with the person selling in the process of purchasing services. These problems may be somebody else's, not yours. 85 out of 100 buyers could be dead wrong. Keep thinking that…and keep fumbling opportunities to win new clients. Fix It…You Can't Go Wrong Let's assume you discover you have several areas where you can, indeed, improve. Picking which one to work on first is a whole new challenge. But in this case, just pick one to fix. You can't go wrong. Each of the 15 problems clients reported had subtle differences in impact on their decision making process. This should not overshadow the fact that, for every problem they experienced, 85% or more of these decision makers report that an improvement would make them “somewhat” or “much more likely” to consider purchasing the provider's services. And what’s that worth, $20k…$50k…$250k? With this in mind, any one improvement can make a world of difference in your selling process. So, pick something to improve! And, tell your friends so that the next time we survey 200 decision makers we won't find clueless, late, and inattentive, but instead hear intelligent, punctual, and focused. Mike Schultz is the Publisher of RainToday.com, a Principal with the Wellesley Hills Group, and co-author of How Clients Buy: The Benchmark Report on Professional Services Marketing and Selling from the Client Perspective.
Staying Competitive: Are You Building the Right Advantages?
By Harvy Simkovits
In order to determine and build your best competitive strengths, assess these factors below in terms of what you see as your company's competitive advantage, i.e., why buyers are buying from you and not your competition.
How much do customers buy from you due to the following "C1" factors?
- The quality and price of your products and services?
- The talent/expertise of your people?
- The knowledge/technology that you provide?
- The location/proximity that you offer?
- The trade experience you have?
How much do customers buy from you due to the following "C2" Factors?
- The trust you build in your buyer/customer relationships?
- The business ethics/standards you hold?
- The industry reputation you have?
- The stability/reliability you can offer?
- The consistency you provide?
How much do customers buy from you due to the following "C3" Factors?
- The effortless/effective/seamless delivery process you provide?
- The integration of competencies you offer?
- The collective intelligence you can apply?
- The organizational alignment/coordination you can provide them?
- The invisible force of desire that you magically create?
Which set of the factors above (C1, C2 or C3) do you most want to be known for by your customers? And, if you're not sure how your customers see you now, then use the above questionnaire to ask their opinion of you.
Based on the above factors,
- If you are mostly competing on: "C1" Factors,
then you are competing on: Competency/Capacity
- If you are mostly competing on: "C2" Factors,
then you are competing on: Credibility
- If you are mostly competing on: "C3" Factors,
then you are competing on: Capability
If your company is just competing on building and improving your Competency/Capacity, then you may be viewed by your customers as just as a Commodity Vendor who can be easily replaced. Competencies/Capacities can always be, in time, matched by your competitors. Your company may have important talent, experience or expertise, yet those can always be duplicated or bought over time. Thus, you can become easily "commoditized" by buyers who choose vendors based on price alone.
If your company is competing on Credibility (in addition to Competency) then you are building strong human bonds between yourself and your customers, and will be viewed as a Trusted Supplier. However, your customers may not remain fully tied to you, replacing your company if a competitor offering greater value comes along.
If your company is competing on Capability (as well as Credibility and Competency) then you provide a business-to-business "experience" and value that cannot be matched. You will then be viewed as a Business Partner, with a dynamic interdependency (business ties that bind) between you and your customers which link you closely together.
Thus, we have the following conclusions:
- Those seen as a: Commodity Vendor
compete on their: Competency
are vulnerable to: Commoditization
- Those seen as a: Trusted Supplier
compete on their: Credibility & Competency
are vulnerable to: Higher Value & More Interdependent Offerings
- Those seen as a: Business Partner
compete on their: Capability, Credibility & Competency
are vulnerable to: Nothing!
So, going back to the list of factors on the previous page, which ones do you want most to compete on and build into your organization?
Harvy Simkovits, CMC runs Business Wisdom. He works with business leaders who want to be their best and win more at business.
Alan, Alan, Alan!
By Jim Simons
Dr. Alan Weiss, consultant’s consultant, swaggered and swayed to a full house at the final IMCNE program of the season. Weiss oozed wisdom like oxygen and the full house inhaled deeply for the better part of 2 ½ hours.
Ken Lizotte hushed the room with arms raised as he brayed, “Hellooo fellow consultants! …Hellooo Mister President!”, one last time. Carol Bergeron gamely assisted.
Carol, not incidentally is the new chapter president, made public at this very point by outgoing president Ken (who wishes to be called X-Prez from here on). If you blinked you missed the changeover: a box of papers was hauled out, Ken bellowed ‘Madame President!’ and it was pretty well over. Huzzahs followed.
Finally to Dr. Weiss who proceeded with a bottoms up, extended question and answer session. Like moths to a flame, attendees probed Weiss for any and every insight: lessons learned, mistakes made, books read and such on the path to million dollar consulting. With little prodding, Weiss warmed to the subject - all things Alan – with anecdotes and role playing as he challenged our conventional thinking. ‘Convention is holding us back’ said Weiss, who is a card carrying contrarian.
Know this of Alan: he is a generalist whose brand is himself, charges for value and doesn’t like to work much. He knows a good tailor and is likely to show up to the client in a red Ferrari. These are reasonable business costs.
Know thyself: you hate to market, fear rejection, price by the hour and are probably are chewing on a 19 cent pen as you read this.
Mistakes? He’s made a few. Picked himself up though, dusted himself off and started over again. Alan channeled lessons learned and a veneer of humility into a discourse of tough love. An important lesson is the worst thing that could happen is usually not fatal and is likely to make you stronger if not wiser. Just do it.
The program was more than half over when someone stood to ask ‘just what is it Alan you do’? The stock answer was organizational development. The truth is he is master of his brand.
James V. Simons CCP, CEBS is President of Compensation & Benefit Solutions
You could be sharing your wisdom and observations with your fellow IMCNE members. Submit your article of 250-300 words for consideration to News & Views Editor Mike Kayat at
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