Retain customer, loyality

7/28/2019 Retain customer, loyality

1/44

How to retain and build trust

with clients


2/44

Possibly the most interesting book on the subject, In Search of Excellence by

Thomas J. Peters and Robert H. Waterman, Jr., defines three ways you can

compete to gain customers: operational excellence, product excellence, or

customer intimacy. The book makes the point to choose one and let that lead

your company. Another choice may be a secondary goal, but you cant pursue

all three. For example, if you're Home Depot, you compete with the lowest

price based on operational excellence; ifyoure Neiman Marcus, you compete

with the best service. IfyoureIntel, you compete with the best technology.


3/44

What Zone Do We put our Focus


4/44


5/44

Some Strategies

For Implementation


6/44


7/44

1. Relevance: In order to be truly relevant to a client, your work mustdirectly relate to and support that clients agenda of criticalpriorities. If you cannot demonstrate this, you will be sidelined:senior management wont care about your work, and your fees will

always be under scrutiny. Youll be a nice-to have but nonessentialvendor.

2. Impact : If you want to impact a clients success, your work needs tosomehow affect or tie to the companys most important levers forgrowth and value creation.

3. Ensuring that the agenda is the right one: The wrong agenda can bedisastrous.

E.g. :

At this writing, General Motors market capitalization is a fraction ofToyotas, and bankruptcy is a distinct possibilitya consequence ofspending decades following the wrong agenda (a wasted roboticsprogram in the 1980s; lack of investment in hybrid technologies; anexcessive focus on large SUVs sport utility vehicle and trucks as oilprices climbed; and so on). Clearly, General Motors agenda has not beenthe right one.


8/44

4. Breadth: You may be initially asked to work on a relatively

circumscribed, narrow issue for a client. Your ability to broaden the

relationship over time depends on understanding and being able to

engage with the clients broader agenda. If all of your conversationswith the client are about the specific project at hand, its unlikely you

will be able to discern additional needs, introduce other colleagues,

and therefore grow the relationship.


9/44

Agenda stageStage 1Agenda reacting: In stage 1, you react to a clients request for work. You get a call

asking for help with an issue. Your client has identified the need, not youyoure reactive,

not proactive.

Stage 2Agenda sensing: In this phase, you invest time to deeply understand your clients

needs, issues, and goals. This may happen as a natural consequence of working with her,

or it may require a special effort to get to know her as an individual, learn about her

business, and understand the markets and industries in which her organization competes.

Stage 3Agenda setting: At this point, you have earned the requisite trust to be able to

help your client shape and set her agenda. You have a seat at the table when your client

is thinking about her most important issues.


10/44

Executive Conversations

Client agendas are uncovered through open-

ended questions that probe for key priorities,

problems, and opportunities. Here are some

suggested questions that may be helpful as you

explore and try to uncover a clients agenda:


11/44

1. In talking to our other clients in your industry, we find that there are three major issues

that they are grappling with right now . . . how would these resonate with you and your

management?

2. How is your organization reacting to . . . [a recent, important development in this

clients industry or function]?

3. How are you handling . . . [new competition, low-cost imports, a new regulatory

framework, etc.]?

4. Can you share with me your thoughts about the most pressing issues that youre

focused on right now?

5. Can you say more about what you mean by . . . [organizational transformation,

globalisation, cultural change, innovation, etc.]. Do you have some specific goals? What

programs are you trying to implement to achieve them?

6. At the end of the year, how will you be evaluated? What accomplishments or goals will

you be judged by?


12/44

7. As you look at your plan for this year, what do you feel is working well? Where

are you making less progress?

8. What are your biggest opportunities over the next several years?

9. What issues do you wish you could spend more of your time on? Less time on?

10. How would you describe your organizations priorities for the next year?


13/44

Conclusion

If you are responsible for developing and managing client

relationships, it is imperative to hone your skills at sensing and

shaping client agendas. The art of growing a relationship is very

much founded on the capacity to deliver high-quality work in a

specific area of expertise, while simultaneously conversing

intelligently with your client about their broader agenda and

connecting your work to it. A profound understanding of your

clients most critical issues and goals, in short, is essential to

building the Level 6 trusted partnerships .


14/44


15/44


16/44

Strategy two

Engaging New Clients

Evolving Your Relationships from Contacts toClients

First meetings with a far more specific plan.

You should havefourmain goals for any first

meeting:


17/44

1. Build rapport.

2. Understand the other persons issues.

3. Demonstrate credibility.

4. Establish a next step.


18/44

A-The New Neuroscience ofEmpathy

Researchers have discovered that these mirror neurons fire

in exactly the same patterns whether you are performing

the action or someone else is performing it. So in essence,

these specialized brain cells allow you to actually experience

what the other person is experiencing.

1. Build rapport.


19/44

B-Mimicry

The concept of mimicry, or mirroring another persons body language in order toestablish rapport In another study conducted at Duke University, researchers

had 37 students drink a beverage that was touted as a new sports drink. The

researcher who subsequently interviewed them about the drink mimicked their

posture and movements, using a one- or two-second delay. If a student crossed

her legs, the interviewer would wait a second or two and also cross his legs. If

the student scratched her nose, the interviewer would also scratch his nose,

trying to approximately but not precisely copy the gesture. At the end of the

interviews, students who had been mimicked with a delay were far more likely

to say that they would buy the new sports drink, compared to students who

were not mimicked.


20/44

2. Understand the other persons issues.

A- What we find:

In this approach, you share with the client some

specific experience or best practices that relate

to their issue, and then you let them react. Youmight say, What we find is that there areusually three potential obstacles to

implementing a program like this, or, What wefind is that behavioral change is an importantbut often-ignored ingredient in this situation.


21/44

B- Smart questions:

In this context, a smart question is one in which you

demonstrate your own knowledge of the issues while getting

your client to open up and tell you more about theirs. It works

well when you ask the client to place their organization on a

scale of extremesfor example, I might say, Some of my clients,

which have historically had tenure-based compensation systems,

are now moving toward more individually driven rewards. On

the other hand, other clients are trying to get away from an

emphasis on individual performance and are moving toward

team based incentives. Im curious, where is your organization

on this continuum?


22/44

C- What are the implications?

Implication questions are almost always fruitful as a

means to explore a clients issues. You can simply ask,How is this affecting . . . (morale, sales, productivity,

risk exposure, communications, speed of decision

making, etc.)?


23/44

D- Let me give you an example:

This approach to gleaning your prospective clients issues involvessimply sharing several case examples of other clients youve worked

with, and getting the other person to react to those stories. This

works best in response to questions like, Sotell me something about

your firm, in which case you respond by saying, The best way to

talk about what we do is to give you one or two examples of recent

work weve completed. After you recount a short, sharp case study

(100 to 150 words, no more), the client will usually say something

like, Thats interesting. Actually, were facing a similar issue. Or,

Thats really not our issue. What we are up against is quitedifferent.


24/44

E-What are yourpriorities?I still hear people asking questions like What keeps you up at night? or

What are your three most pressing issues right now? As Ive mentioned,

these are shopworn, overused, and with some clients, possibly intrusive.

For example, To understand if and how we can be helpful, it would

useful to get a sense from you about some of the high-priority issues

you are working on right now. Or, I know you have a lot on yourplate right now. In your view, what would you say are the most

critical issues on your agenda? You can also turn this over to the

client and say, I understand that weve got 30 minutes this

morningare there some particular issues youd like to focus in onduring our discussion?


25/44

3. Demonstrate credibility


26/44


27/44

4. Establish a next step.

Now, we are talking about evoking the clients curiosity to want

to meet again with you or someone else from your firm. You can evoke

your clients curiosity in a variety of ways, such as:


28/44

Clearly making the connection between a tough issue they are trying to solve

and a specific capability or experience you can bring to bear on that issue

(client is thinking: Maybe they have the skills to help us).

Suggesting that you can bring back some data or research that is either just

plain intriguing, or that will shed light on one of the issues the client is dealing

with (client is thinking: Theyve got some interesting data Idlike to see).

Offering an introduction to a colleagueor even someone outside your firm,

such as a clientwho has first-class expertise and experience (client is

thinking: Idlike to meet this person. Shes a real expert).


29/44

Conversational Techniques


30/44

1. Synthesizing: Pulling the conversation together and clarifying the issues, as opposed to

just summarizing.

2. Active listening: Interjecting okay, uh huh; I see; what happened then? and so on.

3. Nonverbal listening: Leaning over, using strong eye contact, focusing completely on

the other person.

4. Echoing: Repeating the last word of the other persons sentence, to encourage

elaboration.

5. Self-disclosure: Saying things like I know what you meanI missed my wifes birthday

one year, too.

6. Open-ended questions: How do you think this is affecting your customer service?7. Provocative questions: Why?Sowhat?Does that really matter?

8. Questions about the meaning of words: Encouraging the other person to elaborate:

What exactly do you mean by..?

9. Questions about the past, the present, and the future: How and when did this start?

What are you doing now about it?In a years time, what kind of progress do youhope to achieve?

10. Personal questions: Where did you grow up?; Going forward, is there another role

youd like to play in the organization?

11. Questions about feelings:How did people feel about that decision?


31/44

(Listening Pitfalls)

There are a number of bad habits that I have

observedstarting with some of my ownthat

can get in the way of effective listening and,

therefore, good conversations. Ask yourself howoften you indulge in any of the following:


32/44

1. Thinking ahead: Our minds often race ahead to the next question or issue

while the person were with is still talking.

2. Believing that youre the most insightful person in the room: We tend to

forget that its not always about being right or having the perfect idea, butrather about helping clients make changes that will improve their business.

3. Being in love with your own ideas: After spending weeks or months analyzing

the problem, its easy to become enamored of the conclusions youre trying

to presentas opposed to creating a give-and-take with the client as you

socialize and test your ideas.

4. Listening without giving back: Good listening is about mutual disclosure, not

just sitting there and taking notes. The conversation has to be interspersed

with sharing of your own thoughts, feelings, ideas, and experiences.

5. Not affirming or validating: Affirmation is a powerful reinforcement for the

person speaking. Paraphrase and synthesize as you go along. Affirm that you

have understood your client.


33/44

6. Lack of mindfulness: We are often distracted, rushed, and judgmental; and

not present in the current moment. All of your body language has to

reinforce that this is the most important conversation happening in your

world today.

7. Indulging your biases: We all have biases, and even prejudices, which

inhibit our ability to listen. Some studies have shown, for example, that

doctors give inferior care to certain minority groups. Why? Most likely

because their unconscious biases prevent them from listening wellfrom

taking these patients as seriously as they should.

8. Not allowing silence: Silence gives the client a chance to think and reflect,and it can make you seem thoughtful and considered in your judgments.

Dontrush to fill every second of airtime embrace the occasional pause or

break in the conversation.


34/44

Engaging with Senior Executives

Think about the senior executives that you know. What are they like, inside

and outside the office? What pressures are they under? In their careers,

they are most likely highly driven and successful. You will probably find that

many of them read widely and pursuewith passion and vigoran eclectic

variety of outside interests. At work, they have access to vast amounts of

information because they tend to be collection points for a broad array ofmarket and competitive data that cross their desk. They will value your

expertise, especially if you are truly good at what you do. But if you are one-

dimensional and have few professional or personal interests outside your

core specialty, its unlikely that your relationship with them will grow very

close. As one of my clients said to me, In order to be interesting, youve gotto have interests. A recent New York Times article about the libraries of

CEOs starts with the headline, In personal libraries, more literature and

poetry than business best sellers.


35/44

Nice rule

If you are not spending 50 percent of the time

you have with a senior executive talking about

things other than the immediate project you are

working on, youre probably not reallydeveloping a relationship with that person.

Relationship Manager


36/44

1- Value for Time

For senior corporate executives, value for time

has become more important than value for

money.

Examples of ways to add more value for time

would therefore include the following:


37/44

Always ensure that the focus of your conversation connects to

and aligns with the executives agenda of critical priorities.

If it doesnt seem like you are connecting with the other person,

consider redirecting the conversation. Ernst & Young Managing

Partner Mike Hamilton, who is Chief Learning and Development

Officer for the Americas, likes to ask clients a simple question:

Whats the most important issue we should be discussing

today? This can powerfully focus your time together.


38/44

Getting to Know Clients as People

Here are some practices that will help you movefrom a purely professional, arms-length relationship

to one that has a personal dimension to it:


39/44

1. Be human and accessible: Sometimes we are too professional, too buttoned-

down, or too flawless. Its very hard to become enamored of someone who

has no imperfections or vices, and who has seemingly never made a mistake.

Its okayeven necessaryto occasionally show your human side.

2. Offer praise and complement your client when its appropriate to do so: Youcan be sure that a lot of people certainly arent patting them on the back.

Even highly successful clients appreciate positive reinforcement. Just make

sure that its sincere!

3. Use humor : Humor is a universal way of connecting to others and diffusing

tensions. If you make fun of yourself, it also is a way of showing you arehuman

4. Ask your clients for advice: They may in fact have some very good counsel for

you on issues of importance, and it will certainly make them feel good to be

asked.

5. Look for breakthrough moments: In Clients for Life, I talk aboutbreakthrough moments in the life of a relationshipmoments that

catapult your bond to a new level. These can include working through an

extraordinarily difficult project or transaction together, dealing with a major

crisis, or perhaps, when your client faces a daunting personal issue,

providing support and advice.


40/44

5. Ask about their lives: Most clients are quite happy to talk about their family

and interests outside of work.

6. Follow yourclients lead: Move slowly and take small steps. If someone is

very private and resistant to invitations to talk about family and personalinterests, dont push themgradually build familiarity.


41/44

Accelerating Trust

How to:1. Occasionally say, Idontknow,orIm not sure how to answer that question

right now.

2. Answer every question from your client with refreshing honesty and candor.

3. Occasionallysay no to a client request for more work ifyourenot the best

firm to do that kind of work.

4. Make a recommendation that is clearly in your clients interest and clearly not

in your own interest.

5. Spend more time togetherat work and outside of work.

6. Always keep promises.

7. Recognize unspoken issues and emotions, and try to bring them out into theopen.

8. Never criticize others who are not in the room.

9. Tell your client, rightaway, if youve made a mistake.

10. Start a relationship by having an interesting conversation together, not by

showing how brilliant you are.


42/44

CONCLUSION


43/44

1. Confidence is critical to building Level 6 relationships ,

If you dont believe these things, why should your

clients?

2. focus is essential : Its almost impossible to develop

Level 6 relationships without a significant

concentration of resources. The organization should

invest in its client relationship.

3. Reinforce a collaborative, client centered culture


44/44

Thanks for your attention

Retain customer, loyality

Documents