Developing the perfect client relationship
Cindy Godwin, marketing manager with Norton Rose, reports on the recent PM Forum conference held in London.
To develop perfect client relationships, develop perfect employees first. Not perfect as in dress 'em up in designer suits, cross the right leg and smile like a Stepford Wife kind of perfect. As Nigel Follos, marketing director of Nichols Foods explained, perfect people are not clones or 'yes' men. Perfect employees are innovative and creative and have the right focus on the customer.
The definition of marketing at Nichols Foods is customer service excellence. The leaders in achieving marketing excellence are the 200 people employed by the company. The company turns the word leader on its head early on - prior to employment, all staff have one interview which puts them in the position of interviewer. They must speak to other people in the business to find out if it feels right to be amongst them. Nichols Foods only want people to join them who have the right attitude from the outset. The results of a recent employee satisfaction survey surely prove this policy pays dividends - 96% of staff believe the company walks the talk.
Nichols Foods has only two layers of employees - people who directly serve customers and people who serve the people serving the customers. They have implemented a perfect order scheme - tracking business from order to invoice payment (a perfect order is one without shortage, late delivery or complaint). They are aiming to get 95% of orders perfect. On top of delivering perfect orders, staff are encouraged to do even more to please the client. Employees are recognised for Going the Extra Mile (a GEM award) and rewarded in Nichols, the company currency, which they may redeem for a variety of prizes.
Working from the assumption that in order to deliver excellent customer service, the company must be driven by what matters to the customer, Nichols Foods is renowned for hosting the best golf day in the industry. In fact, Nichols Foods doesn't let the client go home after the golf but instead throws a themed party in the evening. They even take clients to Colombia to see where the coffee is made (and bring them back!).
While Nichols Foods does not measure customer retention, they monitor distribution points; they haven't lost any yet this year and the only customers that have left in the recent past have been a result of the customer changing to a brand which Nichols chooses not to supply. In the five years Nigel has been at Nichols Foods, the turnover has doubled and profitability has increased on an even steeper curve. Whether it is the hospitality, the perfect order scheme or its happy employees, Nichols Foods approach to client relationships works.
In a view from the client, Lesley Jackson, UK finance director of HP Bulmer shared her view, and that of her senior colleagues, of the Good, the Bad and the Perfect advisor.
The Good Advisor . . .
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shares knowledge of other clients - they are able to add value to a client's business, not by betraying confidences, but by applying their wealth of insider information from the many other businesses with which they deal
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develops a gain sharing relationship - if the client does well, so does the advisor; if the client doesn't benefit from the advice, then the advisor does not either. This is not an easy balance to create, but a clear engagement based on results, would open the relationship, providing more contact between client and advisor and allow for fees to be earned for completion against objectives.
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bats for the client - often the advisor is allowed more candour with top management; good clients listen to client employees and, where comments will help to benefit the business, addresses the issues with those running the business
The Bad Advisor . . .
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doesn't treat the client enough - this comment came specifically from one of Lesley's colleagues who is a company director, but, because he is often not directly involved with advisors such as lawyers and accountants, is left off the invite list for lunches, drinks and other entertainment. Drawing him into the social side of the relationship would enable the advisor to learn even more about the business.
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schedules or runs meetings haphazardly - Lesley has often been asked at the last minute to attend review meetings scheduled at the client's convenience, not hers. A bad advisor forgets that she is part of the team.
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constantly looks at meeting their own fee objectives - they sniff around looking for new projects; this is especially dangerous if the advisor is not doing a superstar job on the project in hand. According to Lesley and her colleagues, this is very, very bad form!
The Perfect Advisor . . .
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listens all the time, to every
member of the team (client and advisor);
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doesn't try to sell;
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focuses on developing relationships which are genuine, sincere and offer greater networking opportunities for the client;
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aims to achieve the client's objectives;
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does not accept assignments on which they cannot deliver.
So, you've listened to Nigel and the staff and clients are happy, you've followed Lesley's suggestions and the partners are happy because their clients are really happy and paying them lots of money - are you happy? Andrew Hedley, newly appointed director of business development at solicitors Pinsent Curtis rounded off the morning session with an inspiring lesson in ensuring that the marketing department is enjoying the ride. Whether you are a director or the directed, take a minute to reflect on your own situation. Is your team structured in such a way that the leader is the base of a structure which allows the department to work with and support partners in identifying, securing and retaining profitable business relationships with key clients in target markets? Does the team head:
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Fight the marketing corner to get things done to drive business development?
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Act as a blocker when necessary? - giving staff the power to say no because the marketing director will sack them.
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Supply streetwise?
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Use budgets as a source of authority?
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Loyal to the team? - Alex Ferguson defends his team in public, even if not in the locker room.
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Talk benefits, not features? - recognising milestones but keeping in mind that a marketing organisation is a journey, not a destination.
This happy team should then only have to ask one question: "Are we helping the firm to develop perfect relationships with clients by being the client's team on the inside?"
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