Almost six years ago – long before social media had reared its handsome head and Twitter was still a sparkle in its founder’s eyes - I embarked on my own “personal platform building campaign.”
A significant initiative within that exercise was submitting articles for publication. Why is all of that relevant to today’s post? Well, quite simply, today’s post was amongst my first articles, and if you will allow a small “trumpet blow,” it has been read by more than 60.000 people on Ezine Articles!
In fact, if you ever doubt the value of writing articles, simply Google “Business Development Strategy”
Whilst I very much hope that the super-efficient amongst you had your strategy for 2012 signed off long ago, it may just be that some of you are still in “construction mode” so this will help….. and do please remember, strategies are just as important for individuals as they are for companies!
The “Business Development Strategy” is used to underpin your main business plan and, essentially, it sets out a standard approach for developing new opportunities – either from within existing accounts, or by proactively targeting brand new potential accounts and then working to close them.
The relevant word is ‘strategy’ because you are creating a workable and achievable set of objectives in order to exceed your annual target.
Your Starting Point
The key words are Who? What? Where? When? Which? Why? How?
Who – are you going to target?
What – do you want to sell them?
Where – are they located?
When – will you approach them?
Which – are the appropriate target personnel?
Why – would they want to meet with you?
How – will you reach them?
If you have conducted regular account reviews with your key accounts during the previous twelve months, you should be aware of any new opportunities that will surface during the next twelve months.
You will also, when assessing what percentage of your annual target usually comes from existing accounts, need to review data over the last two or three years (it is likely that you can apply Pareto – i.e. 80% of your business will probably come from existing accounts and in fact 80% of your total revenue will come from just 20% of your customers/clients)
You will be left with a balance – i.e. “20% of my business next year will come from new opportunities” – therefore you can then begin to allocate your selling time accordingly.
Ideal Customer Profiling
Pro-active business development demands that we create an ideal target at the front end – i.e. an “Ideal Customer Profile”
The essential characteristics you will need to consider are:
• Industrial Sector
• Geographical Location (Demographics)
• Size of organizations (Turnover, number of employees, etc)
• Financial Trends
• Psychographics – i.e. philosophical compatibility
Many strategic sales professionals merely profile their best existing clients and try to replicate them. There’s nothing wrong with doing this, but we should always remember that we are seeking an IDEAL and we can always improve on what we already have.
‘New’ Opportunities From Within ‘Old’ Accounts
Because it now costs approximately fifteen times as much to first locate and then sell to a new customer as it does an existing one (although these costs are rarely reflected in the cost of sales) it is essential that we fully develop our existing accounts working upwards, downwards and sideways - thus making the most of the (hopefully) excellent reputation we have developed already.
Most corporate accounts have several divisions, departments, sites, even country offices and you must satisfy yourself that you have exhausted every possible avenue. Don’t be afraid to ask the question “Who else should I be talking to in your organization?”
Developing New Opportunities
There are a number of ways in which we can target new opportunities – e.g.
• Direct mail
• Telephone canvassing (Cold calling)
• Researching archived files for customers who used to buy from your company
• User groups
• E-Mail campaigns
• Qualified leads
• Social media
Not all of these will be appropriate to your particular industry, but you should not be afraid to experiment – i.e. challenge the paradigm (yes, it’s a cliche, but also true!) – and do not accept that just because a particular idea has not worked in the past that it will not do so in the future (Remember when you were learning to walk – it didn’t work first time then!)
The important thing is to make an early decision in terms of what you are going to try and then build this (those) ideas into your master plan.
A Typical Business Development Plan
You should plan out the whole year and review / revise quarterly.
List your existing accounts and plan what activities/actions need to be completed in order to fully exhaust all opportunities.
You may for instance plan to cover more bases within the “decision making unit” or contact associated companies or offices.
A ”Strategic Account Profile” (this is the document that maps out the entire account – if you want to see an example of a typical SAP, send me an email to email@example.com) - can be used as a prompt.
Begin to target new accounts using business directories etc. and set targets per week / month / quarter – i.e.
I normally allow for eight hours per week as a minimum (Don’t forget to continually refer back to your “Ideal Profile”)
Then build in what assistance you need from your marketing function – i.e. qualified leads, seminars, exhibition attendance, etc.
Finally, share your plan with your manager and then commit to it.
You should also measure it against S.M.A.R.T.E.R. (Yes, I know you are probably familiar with SMART, but I am British, so I added “ER”)– i.e. is it:
Linking With Your Commercial Plan
I have suggested that your Business Development Strategy would link with your Master Business Plan, but logically you should also integrate it into your Commercial Kit (this is a document that outlines your monthly, quarterly and annual targets) – specifically the areas that deal with new business generation, account management and development, four tier account lists etc.
These three documents when combined, should drive and guide you through the next twelve months and beyond.
As the man said ”People do not fail because they planned to fail, but rather because they failed to plan.”
The man/woman who knows where he/she wants to go is more likely to get there – they just have to decide how to get there.
All plans are essentially maps and guides – the strategic element is the ‘How’
Do be prepared to change course. Flexibility is key – and don’t be afraid to experiment, look outside the square (Another tired cliche that is also entirely relevant)
News: I tried to register for Wendy Weiss’s latest Boot Camp last night, and couldn’t get on – even though I was prepared to pay. She is a very good chum, but I wanted to slip in unnoticed. And they say that cold calling is dying? Apparently the limit was 1000!!! Quite incredible.
Our good friend and his, Keith Rosen, provides today’s Top Sales Tip over at Top Sales World “It Ain’t About You!”
Source: Jonathan Farrington’s Blog