A common problem many professional firms face is overly relying on only one approach to business development. They focus all their efforts on word-of-mouth and referrals, or on networking, or on responding to tenders/RFPs. Typically, the basket they keep all their eggs in is the one they are the most comfortable with: it's worked for them before, they have the skills to do it, and it doesn't push them outside their comfort zone.
This is fine when in good times are good when there's plenty of business for everyone. But when things get tougher, if that single approach peters out, they are left in big trouble.
I always advise clients to have multiple sources of new clients. usually I suggest they adopt a model which looks at four different types of potential clients:
1. Current Clients: investing in "superpleasing" their highest potential current clients to secure their business, win expansion and extension projects, and get referrals to new clients. Typically this area uses the approaches of Client Relationship Management and Key Account Management.
2. High Probability Potential Clients: targeting 3-5 named companies which meet their core targeting criteria (size, industry/sector, geography, leadership, cultural fit, etc.) and where they have a good chance of winning business (e.g. an ex-client, previous/current contact, a good opportunity for a referral in). Typically, personal approaches are used: direct contact where there is a pre-established relationship, referrals where there aren't.
3. Ideal Potential Clients: targeting 3-5 named companies who meet all targeting criteria and would be the absolute perfect clients - but where there are no immediate entry routes to establish a relationship. Typically, longer-term relationship building approaches need to be used: for example searching for and courting potential referrers, running a targeted mail campaign sending selected articles and research, offering to run a free seminar for a client organisation.
4. "Bluebirds": these are clients who are won unexpectedly rather than being directly targeted. How can you win these sort of clients? By having a channel or approach aimed at getting visible to a broad set of potential clients. For example: public speaking at events with a high preponderance of target clients, running a seminar at a large client industry event, optimising your website for keywords frequently used by target clients. The key here is to use approaches which give access to a broad set of potential clients (rather than the more focused approaches discussed earlier which narrow down to a few specific clients - but with a higher probability of success with each one).
The initial focus should always be on winning more business from your current client base. Because they already know and trust you, the likelihood of winning new business is so much higher than with a "cold" or even "warm" prospect. After that, it's important to use a portfolio approach. Balance the higher chance of winning the High Probability Potential Clients with the long-term higher gain of the Ideal Potential Clients. And where possible, still try to keep open to the chances of a "bluebird" by keeping one of these channels live.
Larger firms with more business development time & resources available can adapt this strategy by increasing the number of Current, High Probability and Ideal Potential Clients targeted - and adding an extra "bluebird" channel.
My advice for most firms though is to always add resources in that order. For many professionals, the "bluebird" channels (e.g. web, speaking, articles) are seductive ones as they offer the hope of attractive new clients without the challenge of personally engaging in the process. Resist the urge to focus too much effort on these channels - the big payoffs are usually in the more targeted, personal approaches. - 31960
This is fine when in good times are good when there's plenty of business for everyone. But when things get tougher, if that single approach peters out, they are left in big trouble.
I always advise clients to have multiple sources of new clients. usually I suggest they adopt a model which looks at four different types of potential clients:
1. Current Clients: investing in "superpleasing" their highest potential current clients to secure their business, win expansion and extension projects, and get referrals to new clients. Typically this area uses the approaches of Client Relationship Management and Key Account Management.
2. High Probability Potential Clients: targeting 3-5 named companies which meet their core targeting criteria (size, industry/sector, geography, leadership, cultural fit, etc.) and where they have a good chance of winning business (e.g. an ex-client, previous/current contact, a good opportunity for a referral in). Typically, personal approaches are used: direct contact where there is a pre-established relationship, referrals where there aren't.
3. Ideal Potential Clients: targeting 3-5 named companies who meet all targeting criteria and would be the absolute perfect clients - but where there are no immediate entry routes to establish a relationship. Typically, longer-term relationship building approaches need to be used: for example searching for and courting potential referrers, running a targeted mail campaign sending selected articles and research, offering to run a free seminar for a client organisation.
4. "Bluebirds": these are clients who are won unexpectedly rather than being directly targeted. How can you win these sort of clients? By having a channel or approach aimed at getting visible to a broad set of potential clients. For example: public speaking at events with a high preponderance of target clients, running a seminar at a large client industry event, optimising your website for keywords frequently used by target clients. The key here is to use approaches which give access to a broad set of potential clients (rather than the more focused approaches discussed earlier which narrow down to a few specific clients - but with a higher probability of success with each one).
The initial focus should always be on winning more business from your current client base. Because they already know and trust you, the likelihood of winning new business is so much higher than with a "cold" or even "warm" prospect. After that, it's important to use a portfolio approach. Balance the higher chance of winning the High Probability Potential Clients with the long-term higher gain of the Ideal Potential Clients. And where possible, still try to keep open to the chances of a "bluebird" by keeping one of these channels live.
Larger firms with more business development time & resources available can adapt this strategy by increasing the number of Current, High Probability and Ideal Potential Clients targeted - and adding an extra "bluebird" channel.
My advice for most firms though is to always add resources in that order. For many professionals, the "bluebird" channels (e.g. web, speaking, articles) are seductive ones as they offer the hope of attractive new clients without the challenge of personally engaging in the process. Resist the urge to focus too much effort on these channels - the big payoffs are usually in the more targeted, personal approaches. - 31960
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